What happens if I stop using my bank account?
Will the bank account be dormant, frozen, or probably closed by the bank. Some of the questions you will see on the internet, people trying to know what will happen to their bank account if they stop using the account.
This is missybanker and I’m here to give you the best explanation as to what will happen to your account if you stop banking services on the account.
What happens if I stop using my bank account
When you stopped using your bank account for far too long, the account will be dormant. The dormancy I’m talking about is inactive, your bank account will be inactive.
In this case, you can receive money or a direct deposit to the account, but you can’t withdraw the money until you reactivate the account. In some financial institutions or banks, once a direct deposit goes into the account, the account will be active again while many banks will require you to activate the account.
You won’t have access to the funds until you reactivate your bank account.
In some banks, once you stopped using your bank account, it will become dormant. If you didn’t reactivate the account and it becomes dormant for far too long, they will close the bank account.
In this case, the bank will assume that you’re no longer in need or interested in the bank account anymore. They will swiftly close the account. It can take up to fifteen years for a bank to close a customer’s bank account over dormancy.
Going back to the question of what happens if I stop using my bank account; two things are involved.
- Your bank account will be dormant and frozen in most cases.
- Your bank will close your account if it is dormant for far too long.
Every bank has its rules on the dormant bank account. Some banks will never close a dormant bank account, while some will close the account after ten years or fifteen years of dormancy.
However, in some banks or financial institutions, once there’s money in the dormant account, they will never close the account. So what I’m trying to tell you is that each bank has its rule on inactive or dormant accounts, so it depends on your bank and their rules on dormancy.
But I will advise you to close a bank account if you’re no longer in need of the account. If you have money in the account, kindly withdraw or transfer the money, and close the bank account.
However, if because of a financial situation that makes you, not use the account, please try to transfer money to the account at least once or twice in a given year. No matter the amount it will make the account to be active and you will not risk it being dormant and closed.
What happens if I stop using my bank account?
Your bank account will be dormant and risk being closed by your bank or financial institution.
Will my bank account close if there is no money in it
Your bank account will not close if there’s no money in it though it will make it to be dormant and in turn risk the account of being closed.
However, in some banks, a customer cannot withdraw all the money in his or her account, there is a minimum operating balance that should be left in the account. Once a customer tries to withdraw all the money, it simply means that the customer wants to close the bank account.
So leaving the account with a zero balance means that the bank should close the bank account.
Just like I said, every bank has its rules and regulations. Some banks will not close a customer’s account if the account balance is zero, while some banks will close the customer’s bank account because it is against the rules on minimum operating balance.
This is why it is good to know your bank rules and regulations during account opening though they usually state it on their indemnity form.
Lastly, I won’t recommend leaving your bank account with a zero balance unless you don’t need the account anymore. Try to transfer some little money to the account and make it to be active.
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Having a zero account balance will lead the account to be inactive in the long run, and this might lead to the bank account closed by the bank. Same thing with the topic of the post, what happens if I stop using my bank account.
How long does a bank account stay open without activity
It depends on your bank, some banks are one year, three years, five years, or ten years and after that, the bank account will be dormant due to inactivity.
I’ve seen a bank where a bank account must be activated for six months else it will be dormant and closed. All these depend on your bank or the financial institution and their rules on the bank account.
But I will advise you not to leave your bank account inactive for one year. At least once your try to transfer money to your account, make a withdrawal, or use it for payment. This will make the account to be active.
Don’t leave the account for more than two years of inactivity, else the bank will park the account and it will be dormant. This also goes to the question of what happens if I stop using my bank account.
Can money be deposited in dormant account
Absolutely yes, money can be deposited into a dormant bank account as long as the bank account is not closed. But the truth is, the bank customer will have to reactivate the account before he or she can withdraw the money.
Once a bank account is dormant, the account will be frozen. Frozen means debit transactions won’t go through but credit transactions will go through. So before a bank customer can withdraw or use the money, the account must be reactivated. What happens if I stop using my bank account.
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Can I withdraw money from my dormant account?
The answer is no, you can’t withdraw money from a dormant account because the debit transaction is restricted on a dormant account. Once a bank account is dormant, it is frozen.
No cash withdrawal, no making payments using the account until it is reactivated and becomes active.
If you want to withdraw money using a debit card, it will be declined. Also if you go to the bank to withdraw money through the counter or the teller, the teller will ask you to reactivate the account cause it is frozen and debit transaction restricted. What happens if I stop using my bank account.
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Reactivate a dormant bank account
To reactivate a dormant bank account is similar to when you’re opening a bank account cause it is the same requirement. Mind you, it depends on your bank, your location, and your country’s banking system.
You will have to fill out a form for a dormant account, write a letter to the bank manager that you wish to reactivate your bank account, and also state the reason why you left your bank account to be dormant.
It will not take more than 24 hrs for a dormant bank account to be reactivated and become active. Once the account is reactivated, the bank will ask you to deposit or transfer money into the account immediately or within the next two days.
With this, I’ve come to the conclusion of this post and do hope to have properly answered the question of what happens if I stop using my bank account. Generally, I will recommend you to contact your bank or your bank account manager for more questions.