Answers About Inactive Accounts

Select from the following questions about inactive bank accounts and escheatment.


When is an account considered inactive or unclaimed?

Generally an account is considered inactive or unclaimed when there is no customer initiated activity or contact for a period of three to five years. The specific period is based on the laws or rules of each state.

Each state has an unclaimed property program. Before sending the account balance to the state, the bank is usually required to try to contact the customer. Some banks publish the names of the account holder in a local newspaper. Some banks send a letter to the last known address of the account holder. The bank will turn over the account balance to the state if there is no contact from the account holder.

You can find more information on unclaimed property programs through the National Association of Unclaimed Property Administrators (NAUPU) at www.unclaimed.org and through your state unclaimed property office.

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Why would a bank send me a notice stating that my account may be turned over to the state treasurer as abandoned property?

State abandoned property programs require banks to turn over the funds of inactive bank accounts to the state treasurer. This practice may also be referred to as escheating an account. Generally, an inactive account is one for which there has been no customer-initiated activity or contact for a period of three to five years.

Some states require the bank to notify the account holder before they transfer the funds. The bank may be trying to alert you that your account is inactive and if the account remains inactive, it may be escheated to the state. The letter usually explains the actions that the account holder may take to affirm their account and to prevent the transfer of the balance to the state.

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I recently found some old bank records (i.e., account statements, certificate of deposit receipts, passbooks). The bank does not exist any more and the new bank cannot locate any record of the account. What should I do?

Federal record retention laws require that banks retain most account records for five years. If you are looking for an old account and the bank has no record of that account, you may wish to contact your state unclaimed property office or state treasurer for assistance.

All states have programs requiring banks to transfer funds held in inactive accounts to the state for safekeeping. This is often referred to as escheatment.

Most state offices have web sites where you can initiate a search for unclaimed property held in your name. You can start your search by visiting www.unclaimed.org.

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What can you tell me about state unclaimed property programs?

Every state, plus the District of Columbia, has unclaimed property programs. Each state decides when a bank account is unclaimed. Most state programs look at whether there has been any customer-initiated activity or contact within the last three to five years. Each state sets the period.

Before sending the account balance to the state, the bank is usually required to try to find the customer. Some banks publish the names of the account holders in a local newspaper. Some banks send a letter to the last known address of the account holder. The bank turns over the account balance to the state if there is no contact from the account holder.

You can find more information on unclaimed property programs through the National Association of Unclaimed Property Administrators NAUPA at www.unclaimed.org and through your state unclaimed property office.

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