WatchSo yesterday I got a call from my banker that I needed to come in and sign some stuff because one of my CDs was about to go inactive. This was rather shocking to me. I'd never heard of such a thing. So I went in, signed some paperwork and put the CD back into active status. What I signed said it was for "unclaimed property". Now- perhaps I could understand with a CD. This one was 5 years old. But today I called up the bank and asked them a few questions about this- in regards to what counts as active and inactive.
Perhaps I am misunderstanding this, but from what it sounds like is that if you don't do anything to a savings account other than add money, the account can go inactive after a length of time. On the other hand, if you withdraw money from that account, it shows as being 'active'. So if all you did was open a savings account and have your paychecks added to that account electronically for such and such time, and never withdraw any money, that account can become inactive. There are exceptions. For example if you physically show up to a bank branch and deposit money through a teller, that counts as "activity". But if you do it all electronically that doesn't count.
In my case I have numerous CDs and savings accounts, all of which I simply add to and never withdraw from. I simply use my checking account for all transactions. Thus in order to keep my accounts "active", I'm going to have to "do something" to them on occasion- like withdraw a couple of bucks or show up to a bank teller and deposit a few bucks, or transfer one CD into a new one... etc etc.
None of this makes any sense. In a way its sort of disturbing to learn of this.
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Thanks for the heads up on another chapter of Banks Screwing The Customer.
Perhaps this activity/inactivity definition is a state law thing? Perhaps it is your bank's policy?
I'm anxious to see if anyone here has accurate insight into your story of the banks trying to steal your *abandoned* money because you didn't do this or you didn't do that or they changed the rules somewhere without telling anybody.
I'll be watching this thread. The fcukers.
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The banks know they can pull this off. For every customer who will complain they have 10 which won't be aware that an account exists in their name or notice fees. This goes on until the account is drained of any funds or more daringly goes negative and collection letters are sent out.
What I am certain of is that all banks have employees whose day job it is to come up with the best strategy to suck in funds from 'inactive' accounts. The only thing which will fix this will be regulation. We already have account types which can not be abused like this. There is no reason that CDs, savings and checking should not be under the same rule.
A real bank should make money based on the interest they charge for credit, not on fees for depositors. OK, then again, banks shot themselves in the foot over the last bubble in that regard. Maybe we should nationalize all banks and enforce a cap on salaries for executive staff in these organizations. That would mean banking is boring again. Good. Let's build something real instead we can successfully export. Money is an abstract good which you can only sell as long as it backed by real value.
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Arlington, TX
In active account funds are supposed to be moved to the state. Most have websites where you can claim your money.
You may be surprised to see apartment or water company funds with your name on them. ( earning no interest of course)
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I can see that with a checking but not so much with savings.
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San Jose, CA
Funny this happened to me yesterday. At least they sent me a letter. Had I missed the letter they claim the state government gets the money.... Basically they are claiming its a state law. I talked to someone on the phone she said that you can just call up every three years and have them reset the inactivity counter... So, no you don't have to withdraw money (but that might be the easiest way).
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Redwood City, CA
The point is for people who set up direct deposit or something like that and forgot about the account, or lost the documentation, or had it set up by a spouse who has left the picture. The bank's not allowed to continually acquire money from an auto-deposit source indefinitely if there is no other activity on the account.
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San Diego, CA
This is true, but I didnt get a letter.
In Nov I went to Las Vegas for my annual travel trip and I bought a round of dinner. So I paid with my "travel account" which I deposit occasionally but never used regularly. At payment time I was told my Visa debit card had no money! What the f*&%
The next day I walked to the local branch to "update".... of course they didnt have my signature on file ...they thought I was a criminal.
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The bank is following the state's unclaimed property regulation. They are doing you a favor.
Go to the state's unclaimed property website and see if the state is holding any property on your behalf. The state's are the beneficies of billions of $$ of funds that are uncashed, forgotten. Here is the link for California. (just Google your state and unclaimed property to find other states.)
"The State of California is currently in possession of more than $6.1 billion in Unclaimed Property belonging to approximately 17.6 million individuals and organizations." They owe money to half the residents of the state averaging $350.
http://scoweb.sco.ca.gov/UCP/
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You would think thought that if the same person also has a checking account at the same institution said savings account would not get flagged as inactive if there is evidence of activity in the checking account.
I see the logic of not accepting money indefintately without customer interaction but a little investigation would clear it up.
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The state of California runs an unclaimed property web site (google it) that everyone can check.
I got some car insurance refund through this web site on once. The refund ended up in limbo because I had moved and apparently someone could not be bothered to find my new address.
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shrekgrinch says
Not really. Read 10-K from Williams-Sonoma, Gap, Inc. Gift cards are sold by holding company in Virginia, so gift cards, are never escheatable. So the retailers keep the money from the breakage. This applies to any known retailer.
shrekgrinch says
It is reasonable. I have no problem the state asking me Joe Smith of San Francisco is not Joe Smith of Los Angeles, Otherwise, you can easily steal other people's money.
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Seal Beach, CA
An account is usually considered "Dormant" if ther has been no activity for 12 months. If there are deposits (from another account or source) it should not be considered "dormant". Interest earned on an interest bearing account is not considered an activity. So unless you are actually adding money to the account from another source after 12 months the bank will consider the account dormant. At that stage the bank will attempt to contact the account holder. Typically via mail. At a smaller regional bank they might pick up the phone and make a couple phone call attempts too. The "dormant" account stays at the bank for 2-3 years before being turned over to the State of CA. Banks would much rather have you re-activiate that account than send it to the state. Remember, the bank lends against thier deposits. Loosing deposits hurts the bank.
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SFace says
Thanks .. I just found $500 in a long forgotton account :)
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Jimbo in SF says
Glad to help. Too much negative thinking going on here, at least I turned a negative into a positive for you. C Boy actually said this first.
If everybody in these forums checked, I'm sure there are tens of thousands $$ that can be recovered here. You may want to check your SO, brother, family, close friends just in case. If you find something just kindly send an email. I did that with a few people and they appreciated it.
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Boca Raton, FL
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Who the hell banks with Bank of America and why? I've never used that bank, but even I know they are always trying to screw over their customers. Half the rip-off stories you read about have to do with BoA. So, why would anyone do business with them?
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SFace says
Thank you for the link, I wonder how much traffic that website is getting thanks to your comment. I went over there and found $2.69 due to me. As in two dollars and sixty-nine cents. Every little bit helps, doesn't it?
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Santa Cruz, CA
Take your CDs and Savings accounts and move them to Vanguard.
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Beverly Hills, CA
gardener1 says
I discovered this almost by accident a few years ago. Now, I visit my banks once every 3 months at the teller window and add five dollars in cash to each account, have them tally the almost invisible interest, and then I ask them to do a second transaction...followed by withdrawing one dollar. I smile as they get pissed off at all this "paperwork" THEIRS...and ask them "..How long do you think it would take for the average person to save $100,000 CASH? They shrug their shoulders, and then I ask "How much would YOU charge me to borrow $500 on a signature loan. They smile as they calculate tell me about $150! Okay then please explain why if money is that valuable, why you only pay me interest on $100,000 after 12 months of the equivalent of about 50 McDonalds $ 1 dollar menu "cheapie" burgers? I tell you what, you pay me some REAL interest and I'll deposit some REAL money. It's a two way street .....YOU trust me...and I will trust you. But the nickle and dime stingy attitude WITH MY MONEY will bring me in every three months to deposit some BIG BUCKS. BTW, if YOU need a loan for a good reason, I'll loan it to you at 5% a year NOT 35% a year like this bank and I can still make money. Think about it. Do you want a loan?
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ttt says
And the Oil business.
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Dan8267 says
Laziness. Many people won't drive a few blocks out of their way to a Credit Union or small regional bank.
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I just got a call this morning from my bank 5/3 and was told my savings account was about to go inactive. I was told that after 36 months of inactivity the state (OH) can come in and take the money. I find this unbelievable and absurd. What in the heck, if I want to leave it set that should be my option, it's MY money. I don't get it. Is this a free country or not? That question is up for grabs.
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Let's all run on the bank, and withdraw every cent.
They would be paying 5% interests on a checking account with in a month.
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Boca Raton, FL
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TPB says
Somehow I expect the banks would get the Fed to print more money to float the banks during the run. We'd still get screwed.
We need to end the Fed to protect ourselves.
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Just read an article today how banks aren't loaning Small Biz money, with out tangible collateral. Any business in need of a sizable loan, are already upside down.
So get this, there's this new loan that banks are doing where they loan you money and you have to pay back 15% of every purchased swiped until you pay back the money you owe, it ends up working out to about 125% over what you borrowed.
Amex will only take 10% of Amex purchases, and give you a year to pay it back. After a year, they take 100% of all purchases.
Sounds like Quido Trust. I think John Gotti deserves a posthumous pardon.
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None of this surprises me. Below is my link to a thread I posted the other day. I have racked up $189 and counting in "bank fees" for an inadvertent insufficient funds fee (online bill pay mistakenly writing a $227 check from one account and not the other). Normally $30 in fees.
http://patrick.net/forum/?p=1209056
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i want to know all things about what dormat account is all about and if i am paying in but i am not withdrawing would it be considered as a dormat account please experience this to me i am a student.
what is the most thing that cause an account to be dormat
1. is snt by not paying in for a specific period of time?
2. is snt by not to withdraw for a specific time? or what.
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Vero Beach, FL
I had the opposite problem. Received a letter from Chase threatening to convert my savings into checking per fed rules about too much activity. I sent money into my online Sallie Mae account six times in a month. Apparently, that is not allowed. Ridiculous!
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47 male
Lafayette, CA
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TPB says
They get all the money they want from the Federal Reserve at 0-.25%.
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El Cerrito, CA
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They have slave plantations overseas to do the production and they can counterfeit as much currency as they want. Only thing left for them to do is get us to fight among ourselves while they confiscate the properties.
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All money belong to Fed Reserve.
You really don't "own" it.
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San Jose, CA
I've had a savings account go "inactive" on me. They claim that the money will go to the government. There is a lengthy process to claim the money back. This is stupid.