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What Happens If You Don’t Use Your Savings Account?

It’s not uncommon for individuals to open a savings account with the best of intentions, only to let it sit idle without making deposits or withdrawals. Whether it’s due to oversight, a preference for using checking accounts for everyday transactions or simply forgetting about the account, it’s important to understand the potential implications of an inactive savings account. This post will explore what can happen if you don’t use your savings account and how to manage an account to avoid any negative consequences.

Understanding Dormancy in Savings Accounts

A savings account may be considered dormant or inactive if there have been no transactions for a certain period, typically 12 to 24 months. The specific timeframe can vary depending on the bank’s policies. When an account becomes dormant, banks take certain steps, which may include:

1. Notification

Banks are usually required to notify the account holder when an account is on the verge of becoming dormant. This notification is a prompt to make a transaction to keep the account active.

2. Fees

Some banks may charge a dormancy fee if an account remains inactive for too long. These fees can slowly deplete the funds in your account, reducing your savings without you even realizing it.

3. Escheatment

If an account remains dormant for an extended period, usually several years, banks are often legally required to turn over the funds to the state’s unclaimed property division. This process, known as escheatment, means that you would need to claim your money from the state if you wish to recover it.

Preventing Negative Outcomes

To avoid fees, escheatment, and the hassle of reactivating a dormant account, consider the following strategies:

Regularly Monitor Your Accounts

Even if you don’t actively use your savings account, regularly checking the balance and account status can help you stay informed of any changes or requirements.

Make Periodic Transactions

A simple deposit or withdrawal once every few months can keep your account active. Setting up a small, recurring transfer from another account is an easy way to ensure activity without requiring ongoing attention.

Consolidate Accounts

If managing multiple accounts becomes burdensome, consider consolidating your funds into fewer accounts. This can make it easier to keep track of your money and ensure that all accounts remain active.

Understand Your Bank’s Policies

Familiarize yourself with your bank’s specific policies regarding dormant accounts, including any potential fees and the timeline for an account to be considered inactive. This knowledge can help you take proactive steps to avoid unwanted outcomes.

The Importance of Active Savings

While the consequences of an inactive savings account may seem minor, they can undermine your financial goals over time. Actively managing your savings, even if it’s just to ensure the account remains active, is part of a healthy financial routine. It ensures that when you need your savings, your funds are readily available and not diminished by fees or absorbed into unclaimed property funds.


Letting a savings account go unused can lead to unexpected fees, reduced savings, and even the loss of your funds to state unclaimed property divisions. By taking simple steps to ensure activity, you can keep your account in good standing and your savings secure. Remember, the purpose of a savings account is to support your financial well-being; regular engagement with your account ensures that it continues to serve this vital role.

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