What happens if your bank account is dormant?

If the account has been inactive for 2 years, it becomes dormant or inoperative. To avoid this from happening, you can carry out transactions like outward bill, cheque transactions, cash deposits, cash withdrawals, etc. If you don’t pay heed to managing your inactive bank account it can cost you money.

How do I know if my account is dormant?

If you haven’t done any transactions in your account for 12 months, it will be classified as an Inactive. If you don’t do any transaction for further 12 months, it will become Dormant. Effectively, a savings account is considered dormant after 24 months of inactivity where no valid transactions happen.

Do banks pay interest on dormant accounts?

The penalty is an annual charge and is usually a fixed amount that is debited directly from the account periodically. However, any receivable interest continues being credited to the account regularly, even after it has been declared inactive or dormant.

What happens to money held in dormant bank accounts?

A dormant account is an account that has shown no activity for 15 years. Unclaimed money will be transferred to a fund managed by the NTMA (National Treasury Management Agency) and paid out by the Dormant Accounts Fund Disbursement Board.

How does account become dormant?

Understanding Dormant Accounts. An account will turn into a dormant account if there has been no activity present for a long period of time.

What does dormant account stand for?

dormant account. In general, a low-balance savings account which has shown no activity (deposits and/or withdrawals) over a long period, other than posting of the interest and/or service charges.

What are inactive accounts and dormant accounts?

Dormant Accounts. Accounts that have not shown activity for a minimum of 180 days are considered Dormant,and some of the physical munzees from these accounts will be archived.