Here's What Happens When You Don't Make Any Bank Account Transactions for More Than a Year

If you have a bank account, chances are, you use it pretty often. Your checking account, for example, is where your paychecks might land, and you might also use your checking account to pay bills and withdraw cash.

Now, if you have a savings account, you might use it less frequently. But ideally, you'll at least be making the occasional deposit. Or, you might have to take the occasional withdrawal to cover an unplanned bill, like a home repair.

But if you go more than a year without making any transactions in your bank account? That's an unlikely thing to happen with your checking account. But let's say you have a savings account at a separate bank from your checking account, and you let it sit untouched. Or, let's say you have an old savings account with a small balance you've simply forgotten about.

When you go too long without making bank account transactions, there could be consequences. So it's important to know your bank's rules.

Our Picks for the Best High-Yield Savings Accounts of 2024

Capital One 360 Performance Savings APY 4.25% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening. Min. to earn $0 Open Account for Capital One 360 Performance Savings On Capital One's Secure Website. Member FDIC.	APY 4.25% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening.	Min. to earn $0
Discover® Online Savings APY 4.20% Min. to earn $0 Open Account for Discover® Online Savings On Discover Bank's Secure Website. Member FDIC.	APY 4.20%	Min. to earn $0
American Express® High Yield Savings APY 4.25% Rate info 4.25% annual percentage yield as of September 19, 2024 Min. to earn $0 Open Account for American Express® High Yield Savings On American Express's Secure Website. Member FDIC.	APY 4.25% Rate info 4.25% annual percentage yield as of September 19, 2024	Min. to earn $0

When your bank account is neglected

When you go too long without transacting in your bank account, it can become dormant. At that point, your bank might have the right to charge you an inactivity fee -- it depends on the terms of your banking agreement.

Meanwhile, once your account becomes dormant, your bank might opt to close your account. At that point, if it has a means of contacting you or a current address for you on file, it should send you your balance. If not, your bank might turn your balance over to your state as unclaimed property.

Here's the tricky thing: There's no broad rule that dictates when a bank account becomes dormant. At one bank, it may be that 12 months of inactivity leads to that. For another bank, it might be more or less time. So it's important to know your bank's rules so you don't end up in a situation where your account is closed, you're charged a fee, or you have to go chasing after your money.

How to avoid a dormant bank account

Generally, all it takes to avoid a bank account becoming dormant is to make the occasional transaction. In the case of a savings account, for example, you could transfer a small amount, like $10, into your account every month to keep it active. In the case of a checking account, you can set up a bill to be paid automatically out of that account every month.

Meanwhile, if you have a bank account you don't use often and don't expect to use anytime soon, you may be better off actively closing it than waiting for your bank to do so. That way, you can potentially avoid any inactivity fees your bank might try to charge you.

Meanwhile, if your bank account is closed due to being dormant and your funds are turned over to your state, you're not necessarily out of luck. Different states have different policies for reclaiming funds in that situation. But as a starting point, you can use this database to try to track down your money.