Here is all you need to know about a dormant account or inactive account and how you can reactivate it and start using your bank account.
What is a dormant account
A dormant bank account is an account which has been inactive for more than three to four years. In this case, inactive means that no transaction whatsoever has occurred in the account.
There’s no money received to the bank account, and also no money sent out or transferred from the bank account. No paying of bills using the account or even checking of account balances.
If your bank account haven’t received or send money for more than three years or four years, the account becomes dormant.
When your account becomes a dormant account, thar doesn’t mean that the bank have closed your account permanently.
That is no. You can still send or receive money to your dormant account, but can’t withdraw money from it or use it to pay bills.
To even check your account balance using your bank ussd code or mobile app will be difficult, unless you contact your bank.
So what i’m saying here is that you can receive money to your dormant bank account, but can’t perform any bank transactions with it. To do so, you’ll have to reactivate your account.
What causes an account to be dormant
The major causes of a dormant bank account is if the bank account is not receiving money to it, or transferring money from the account.
It this goes on for three consecutive years or four years running, the bank will park the account immediately and until the account holder reactivate it.
This is why it advisable to at least once or twice in a year, recieve money to your account. Even if you have multiple bank accounts, always make sure that they are active and running.
How to prevent your bank from parking your bank account
Like i said earlier always make sure that you receive or transfer money from your account even if it is once or twice in a year.
Using your account to pay bills online also make it to be active. So if you don’t fancy the first option, pay bills using your bank account and doing so, your bank will not park it.
If you’re living abroad, please endeavour to be sending money to your domestic bank account. This is why i recommend that every bank customer should have the bank mobile app. Through the mobile app or internet banking page, you have full access to your bank account.
How to reactivate a dormant bank account
Seen that your account is no longer active, the question you’ll ask is how to reactivate a dormant account?
The procedure to reactivate a dormant account depends on your bank and also your country. But generally, you will require to fill a dormant reactivation form with an application letter.
Like i said it depends on your bank.
For example to reactivate an inactive bank account in zenith bank, you’re required to complete a dormant account form, write an application to the manager of the bank that you want to reactivate your dormant account.
Then you’re also required to bring your ID, it can be a voters card, national ID card or international passport along with your electricity bill and a passport.
So the requirements needed to reactivate your inactive bank account includes;
- Dormant account form
- Application letter to the manager
- ID card
- One Passport Photograph
- Last three months electricity bill
With these requirements, you can reactivate your account that has been dormant for years.
The procedure is to go to your bank, speak with the customer service representative that you want to reactivate your account that has been dormant for a while now.
The customer service representative will give you a form to fill, and also a paper to write an application for account reopening.
After you’re done with the form plus the application letter, submit it back to the customer service representative along with other requirements. It will not take more than 24hrs and your account will be active and running again.
Dormant account fee
Please there’s no fee attached to reactivating your inactive bank account, though it may depend on the bank you’re banking with and also your country.
In this country, to reactivate a dormant account doesn’t cost anything but only that you must fund the account immediately it has been reactivated.
If you fail to do so within one month of reactivating your account, it will be parked again and you’ll have to start all over to reactivate your account.
So there’s nothing like dormant account fee but rather you’ve to fund your account immediately after reactivating it.
How long can a bank account be inactive
A bank account can be dormant for years, as long as the bank account isn’t closed by the account holder.
A dormant account is different from a closed account. A closed account is the process of removing your account plus your details from the bank, while a dormant bank account is an account that is parked.
If your bank account is parked, you can reactivate it and have it active again.
However, you can’t do such for an account that have been closed. You’ll have to start all over again to open a new bank account with the account.
How long can a bank account be inactive? As long as the account isn’t closed and the bank is still active and running.
How to know if a bank account is active
How to know if a bank account is active? As long as you can withdraw money from it, use it t pay your your bills, check your account balance using your bank ussd code or mobile app or internet banking.
To know that your account is active, simply send money to your account and try to use it to pay bills or to withdraw the money. If you didn’t succeed, then you should know that your account is inactive or dormant.
You can also call your bank customer service representative to run a check on your account and tell you if it is active or not.
But generally, if you haven’t done any transactions on your account for more than three to four years, kindly know that it is dormant (inactive).
Can a bank take your money for inactivity
Can a bank take your money for inactivity? The answer is No.
The bank cannot take your money for inactivity if you have a sum amount of money in your account. The money will be there and when you reactivate it, you can withdraw your money.
In the case that you have a sum amount of money in your dormant account, then having reactivated it, you found out that the money in your account has disappeared, you can sue the bank for fraud.
A bank is not liable to take any amount of money from a customer’s account without notifying the customer. Doing so is a fraudulent action and you can have them sued for it.
What makes a bank account inactive?
By not leaving it idle for more than three years. No transactions made it like money transfer, money withdrawal, paying of bills, buying of airtime or internet data bundle etc.
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With this i come to the end of this post on dormant account, and how you can activate an inactive bank account. I hope this post have helped you a lot and don’t forget to share this post thanks.