Dormant Bank Accounts
Where the bank and the customer 'lose touch'
When there is no activity in a bank account for a period of a year or more, and the bank can't get in touch with the account holder, then the account will be made dormant.
This means that no statements or other material will be sent out to the account holder's last known address as a safeguard against identity theft.
Although the account will no longer be active, the bank will still keep track of any funds it contains and pay interest due where appropriate.
The most common reasons for an account going dormant are that the customer moved home and didn't inform the bank, forgetting about a small balance in an old account, or that the account holder has died.
It's estimated that up to £5bn may be sitting unused in UK dormant accounts.
More on 'Banking':
Related Links:
Dormant bank accounts - 2005 Edition - Leaflet on dormant bank accounts published by the British Bankers' Association
Dormant Bank Accounts - Are you entitled to some of the estimated £5bn held in dormant accounts?
