Dormant Account
An account with prolonged inactivity, requiring special handling by banks.
Detailed Description
Dormant Account
What is a dormant account?
A dormant account is a bank account that has had no activity for a specified period, typically six months to several years.
What are the common characteristics of dormant accounts?
Dormant accounts exhibit inactivity for a predetermined time, may be marked as dormant, and often involve communication attempts from the bank.
What can cause an account to become dormant?
Causes of dormancy include lack of use, change of address, life changes, and financial hardship.
What are the implications of having a dormant account?
Implications include restricted access to funds, potential account closure, and possible indirect credit impact.
How can account holders prevent their accounts from becoming dormant?
Account holders can prevent dormancy by making regular transactions, setting up automated payments, and monitoring their accounts.