Answers about Inactive Accounts

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.