Should I Close My Dormant Bank Account?

Popular

Health Benefits of Drinking Water You Didn’t Know

These days people are apparently bringing bottled water everywhere they go. It's actually become the second most popular beverage (behind soft drinks). But water...

Coronavirus Symptoms, Prevention Tips, How it Spreads and More..

Coronavirus disease (COVID-19) is an infectious ailment induced through a new virus.The disease reasons respiratory sickness (like the flu) with signs and symptoms such...

Bank Accounts are important and nobody can decline this fact. Bank accounts help us to save some money and also keep that money safe. Not just that the bank accounts also help us to get back the money whenever we need it. If it is a working time of the day for the bank you can reach the branch of the bank and get your money. Although not many of us go to the branch of the bank to withdraw the money.

That is because we have got the digital platforms to deal with this thing. All the banks are issuing debit cards to their customers. And we have some other high-tech technologies as well which can be used to make the transactions. But what if your bank account is in-operatable? If this is the thing in your matter then no matter what kind of systems your bank is providing to you. You just can not take out the money from your bank account.

What actually is an in-operatable bank account?

Here I have used the term in-operatable bank account instead of the term Dormant Account. I have done this because the term in-operatable will help all the people who are not aware of the banking terms like dormant. But the meaning of these two terms is one and the same. So if I use this term “in-operatable” anywhere in this guide then what I mean is Dormant.

The question with which we will be dealing today is: Should You Close your Dormant Account?

I will answer this question for you.

But the answer, in this case, is neutral. What I mean is in some cases Yes, you should close your dormant account. And in some cases, you should not close your dormant account.

What is a Dormant Account?

Normally we get to hear the accounts like Savings Bank account, Current Bank Account which is also called a Checking account. But it is rare that normally we get to hear the term Dormant.

Dormant Account is an account that is no more active for usage. The bank in which you hold your bank account will make your account inactive. This means the status of your bank account will be changed from active to inactive by your bank itself.

But Why Did This Happen?

So now you know that your bank account’s status has been changed from active to inactive by your bank. I using simple terms so that everyone who reads this guide should understand everything.

But why the bank changed the status of your bank account?

The banks often do this only and only if you are not using the bank account for a period of 12 months. (generally) But every bank has a different rule to be followed in the case of the dormant account.

You can find the exact number of months which your bank follows after which the accounts turn dormant on the official website of your bank.

So the answer to the question of why the changed the status of your bank account from active to inactive is. Because you have not been using your account for a while now.

Here you should also note that other than this there is no reason why the bank accounts turn dormant. The banks may freeze the bank account in some cases but that is not termed as a dormant account.

In cases like insufficient documents, fraud activities done using the account or court order the banks can freeze your bank account. Account Closers has some of such cases published on their website in which the bank has frozen the bank accounts as the account holders can not make any transactions using the account.

What Next? Should You Close the Account?

There is always something designed in the banking industry to deal with everything. And there is a solution for the dormant accounts as well.

If you want to continue using the bank account then you can get the account up and running again. For that, you will have to visit the branch of your bank.

You should note this process can not be done online in any bank of the world. So you personally have to visit the bank for the activation of your dormant account.

If you want to read more about the dormant account then you can do that on Quora. Everything about the Dormant account has been explained there.

There is an option to activate the bank account again. But in some banks, you have to pay a charge for that. This charge may go up to $20.

Not all the banks but some banks do charge for the activation. You can confirm this by contacting your bank. Now it is up to you to decide if you want to activate or not.

But I suggest you activate your account if you don’t have any other bank account to use. Again at the end, it is your choice.

Subscribe to our Newsletter

Get all the updates direct to Inbox.
No Span Ever. We Promise.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest

Top 5 Ideas to Strengthen the Husband-Wife Relationship this Karwa Chauth

The bond you share with your partner is special. No celebration is complete without the presence of your partner. This also goes for the...

6 Best Water Sports Destinations

Water adventure is one of the most popular sports in the world. And a lot of people love the adrenaline rush that these adventures...

6 Camping Myths Debunked

Most shy away from the very idea of camping owing to the sheer terror that one has to go about unwashed, dirty, bedraggled, and...

6 Drinks to Avoid on Camping

Who wouldn’t want to just be out there and enjoy nature to the fullest? Camping is one of the best escapes that you can...

More Like This