If you’re wondering “what is account dormant?” you’ve come to the right place…
Whether you just logged into your online banking for the first time in six months or you visited the branch for the first time in a year, you may have been hit with the unexpected notice “account dormant”.
In this article, we’re going to explain exactly what is account dormant and we’ll share how it differs from a blocked account, frozen account, and closed account.
Of course, we’ll also discuss what you can do about these types of accounts and whether there’s any point activating them again.
Feel free to use the table of contents to jump ahead to any sections that are immediately relevant to your search.
Table of Contents
- Dormant Accounts 101
- Reasons Why You Have a Dormant Bank Account
- How to Avoid a Dormant Account
- Frequently Asked Questions
- Ready to Explore Your Options?
Dormant Accounts 101
Dormant bank accounts are more common than you might think, and in most cases, they are 100% accidental (and avoidable).
In fact, we suggest confirming how long it takes for an account to be made dormant during the opening process. In other words, you should ask the bank how many months of inactivity are required for an account to be made dormant.
What Is an Account Dormant?
A dormant account is a bank account that has had its status changed to dormant. Oftentimes because it did not have any inbound or outbound transfers within a set period of time. In most cases, the set period of time that banks use is six months, after which an account is considered dormant and you will not be able to send or receive transactions into or out of the account.
How Does a Dormant Account Work?
A dormant account is essentially frozen, it is not able to send or receive money. But, if you log into online banking for your account management, you will still see the account and any funds held in the account still listed.
With this in mind, having this type of account is not as damaging as having a blocked, frozen, or closed account, since the only offense is that the account has not had sufficient activity.
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Reasons Why You Have a Dormant Bank Account
In almost all instances, there is only one reason that you might experience this type of account. And that is, because of no activity. This is important because it means that you can avoid having this happen to you. In fact, you can avoid this by making sure that you send and receive transactions within a specific time frame.
How to Avoid a Dormant Account
The first step in avoiding this type of account is knowing the specific activity requirements for your bank account. In other words, how many months are allowed to pass with zero banking activity before the bank deems an account dormant.
Once you know this piece of information, you will be able to manage your account activity to ensure that you always have an incoming or outgoing transaction within the required time frame. In doing so, you will be able to ensure that your account stays active. Not to mention, never has its status changed to a dormant account.
Frequently Asked Questions
Below are three of the most common questions that we receive from people that have a dormant account. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
What Happens if the Account Is Dormant?
If you have a bank account that has been made dormant, you will not be able to send or receive funds into the account unless it has been reactivated. Alternatively, if you contact the bank, they may allow you to withdraw the remaining funds. But, there could be additional fees tied to closing the account as most banks charge monthly fees for this type of account.
Can a Dormant Bank Account Be Reactivated?
Yes, this type of account can be reactivated. However, in order to reactivate it, you may need to complete the account opening process all over again. This can be challenging if your bank account is in a foreign country and requires in-person account opening. However, in many cases, this is the only way to go ahead with reactivating this type of account.
Can I Withdraw if My Account Is Dormant?
Whether you can withdraw money from your dormant bank account will ultimately depend on the bank’s policies. In certain instances, you will not be able to send or receive money from this account at all. That said, in other instances, you will be able to withdraw your funds. However, this often requires you to close the bank account completely and withdraw all of your money in a final transaction.
Ready to Explore Your Options?
If you would like assistance navigating your banking options at home or abroad, we can help.
You can access GlobalBanks IQ, our international banking intelligence platform, in just a few clicks. Unlock our bank database, individual bank profiles, account opening strategies and reports, banker scripts, and more.
But, if you want a 100% personalized account opening service that taps into our team’s expertise and provides direct banker introductions, you can get started with GlobalBanks Insider.
Of course, if you have any questions, please contact us directly.
