Q:

What are dormant bank accounts?

A:

Quick Answer

A dormant bank account is an account at a financial banking institution that has had no activity by the owner of the account for an extended period of time. If the account holds no funds, it can usually be closed by the bank itself, while accounts with monetary value must remain open and accessible for many years.

Know More

Full Answer

Funds in a dormant back account are eventually either transferred to an estate fund and held for eventual heirs, or they become the property of the state in which the account was opened. Banks are required to keep the accounts open for a number of years, depending on state law. They must make exhaustive attempts to locate the original holder of the account. Once funds have been seized by the state, the owners or heirs have the ability to claim the funds directly from the state government. Most states maintain an "unclaimed property" website under the jurisdiction of the state comptroller; potential beneficiaries of the funds can typically make a claim electronically or by standard mail. While the money is still in the original bank account, regular monthly maintenance and other fees continue to accrue, potentially exhausting the entire amount over a period of months or years.

Learn more about Personal Banking

Related Questions

  • Q:

    Is money in an online bank account federally insured?

    A:

    The Federal Deposit Insurance Corporation (FDIC) insures all deposits made to checking accounts, savings accounts, money market accounts and certificates of deposit, including online accounts, according to the FDIC. The FDIC does not insure special services a bank may offer such as stocks, bonds and annuities.

    Full Answer >
    Filed Under:
  • Q:

    How safe is an online payment account?

    A:

    Online payment accounts are generally safe as long as they are with legitimate, federally-insured financial institutions that take standard security precautions to protect the accounts and personal information of clients. Consumers can help guard their payment accounts by taking basic steps to protect their online security.

    Full Answer >
    Filed Under:
  • Q:

    How can you view your checking account statements online?

    A:

    Most major online banking services let users register their accounts for online access, sign into those accounts and then view their statements remotely from anywhere they have Internet service. These services, along with a considerable raft of online banking features becoming standard in the market, are commonplace at banks like Citizen's Bank, Bank of America and other major American brands.

    Full Answer >
    Filed Under:
  • Q:

    How do you access a GE Capital account to pay a bill?

    A:

    GE Capital customers can access their accounts to pay their bill by going to the Synchrony Bank website. From there, go to "Quick Links" and select "Payment" to complete the payment process. Customers need to head over to Synchrony because, as of June 2014, GE Capital is Synchrony Bank.

    Full Answer >
    Filed Under:

Explore