Bank of America Warns Inactive Accounts Could Be Closed Without Compliance
While many customers assume their money sits safely in their accounts indefinitely, Bank of America is sending out warnings about inactive accounts that could lead to serious consequences. The banking giant considers accounts abandoned after roughly three years without activity. That’s right—your money could vanish from your account simply because you forgot about it.
This isn’t just about checking accounts. Savings, IRAs, CDs, stocks, and even those safe deposit boxes with your grandmother’s jewelry are all fair game. Even uncashed cashier’s checks aren’t immune to these rules. Dormancy kicks in faster than you might think—just 12 months of no transaction activity will tag your account as “dormant.” And then the clock starts ticking.
Your financial assets aren’t safe from dormancy rules—everything from IRAs to grandma’s heirlooms can vanish after just one year of inactivity.
The consequences aren’t pretty. Restricted access is just the beginning. Eventually, Bank of America might close your account entirely and transfer your funds to state custody through a process called escheatment. Sure, they’ll send a notification letter first, but how many people actually read those? The bank sends notification letters before proceeding with any account closure actions. Once closed, your account gets slapped with an “Inactive” tag in their database. Good luck accessing those funds quickly when you suddenly remember them.
Bank of America’s shift toward digital banking makes this situation even more pressing. With branch locations shuttering across the country, maintaining regular activity through online platforms has become essential. Not everyone’s thrilled about banking by smartphone, but it’s increasingly necessary to keep accounts active.
Reactivation isn’t automatic, either. It requires contacting the bank directly, potentially updating all your personal information, and submitting to “satisfactory due diligence”—whatever that means. Business clients might need their relationship manager involved. It’s bureaucracy at its finest.
The legal landscape complicates matters further. Escheatment laws vary by state, meaning your abandoned funds might face different fates depending on where you live. Banks must comply with unclaimed property regulations, which explains their aggressive stance on inactive accounts.
Prevention is straightforward but requires intentionality. Regular logins, checking balances, small deposits or withdrawals—any transaction works. Setting up alerts might help, too. The bare minimum effort keeps your money where it belongs: in your account, not the state’s coffers. Amazing how just logging in occasionally can save you from a major headache down the road.
