dormant account

Thân thiện

The bank notified the customer about their dormant account.

Definition

1. Noun:
   • A bank account that has had no customer-initiated activity for a long period of time: A "dormant account" is a savings or checking account for which there have been no transactions, such as deposits or withdrawals, initiated by the account holder over a specified length of time, often set by state law or bank policy. Interest may still be posted by the bank automatically.

Usage

• A "dormant account" is a specific financial and legal term. It is used to describe an account that is inactive. Banks monitor these accounts, and after a legally defined period of inactivity, the funds may be turned over to the state government in a process called "escheat."

Examples

• Noun:
  • The bank sent a notice that my savings account would be classified as a dormant account if I did not make a transaction soon.
  • State law requires financial institutions to transfer the funds from a dormant account to the treasury after seven years of inactivity.

Advanced Usage

• "To fall dormant" / "to become dormant": Used to describe the process of an account transitioning into a dormant status.
  • My old checking account became dormant after I moved abroad and didn't use it for years.
• "Reactivation of a dormant account": The process of making an inactive account active again, which may require contacting the bank and verifying identity.
  • To reactivate the dormant account, you must visit a branch with two forms of ID.

Variants and Related Words

• Dormancy (n): The state of being dormant or inactive.
  • The account's dormancy lasted for over a decade.
• Inactive account (n): A more general term for an account with little or no activity; it may not yet have reached the legal threshold to be considered "dormant."
• Escheat (n/v): The legal process where unclaimed property, such as funds from a dormant account, reverts to the state.

Synonyms

• Inactive account: An account with no recent transactions.
• Abandoned account: An account perceived to be left behind or forgotten by the owner (this term may have specific legal implications).

Notes on Meaning

• The key aspect of a "dormant account" is the lack of customer-initiated activity. Automated actions by the bank, like crediting interest, do not count as activity that prevents dormancy.
• The specific timeframe (e.g., 1 year, 3 years, 5 years) after which an account is declared dormant varies by jurisdiction and institution.

Học thuật

Noun

1. a savings account showing no activity (other than posting interest) for some specified period
   • the dormant account reverted to the state under escheat laws