Washington, D.C. A new wave of financial policy enforcement is sweeping across the U.S. banking industry, with Bank of America publicly announcing it will begin closing accounts classified as inactive or abandoned a move echoed by other major institutions including Wells Fargo, JPMorgan Chase, Citibank, and regional banks nationwide.
The announcement, which was published on Bank of America’s official website, warns customers that all types of accounts are subject to closure if certain requirements are not met. This includes checking accounts, savings accounts, certificates of deposit (CDs), safety deposit boxes, credit cards, and even retirement accounts and uncashed cashier’s checks.
What Triggers Account Closure?
The key trigger is inactivity specifically, customer-initiated activity. According to the statement, if an account shows no customer-driven transactions over a prolonged period (typically 3 years, though some states define inactivity at just 12 months), it may be flagged as “abandoned.”
In such cases, the bank is legally required to block access to the funds and transfer the account’s contents to the custody of the state. This applies not only to liquid assets but also to the contents of safe deposit boxes, stocks, and other financial instruments.
Bank of America’s alert reads:
“The bank is obliged to notify the account holder and, if no response is received, transfer the funds to the relevant state agency.”
State Laws Vary on Inactivity Definitions
Each state has its own laws regarding financial inactivity. For example:
- States like New York, California, Texas, Illinois, and Nevada define inactivity as three years.
- States such as Florida and Washington classify an account as inactive after just 12 months, and dormant after 24 months.
Crucially, activity must be initiated by the account holder. Passive actions like automatic bank fees or interest accumulation do not count. Customers must actively interact with their accounts — whether by logging in, making a deposit or withdrawal, or initiating a transfer — to keep them from being flagged.
Recommendations to Avoid Account Blocking
Banks have issued the following recommendations to prevent accounts from being frozen or transferred to the state:
- Make regular transactions in your checking and savings accounts.
- Check your account balances through mobile or online banking.
- Update personal details, such as your address and phone number.
- Deposit or cash checks before they expire.
- Write a check, make a transfer, or simply visit an ATM to verify your balance.
If these steps are not taken and accounts remain idle, they risk being blocked, and customers may then be forced to go through a lengthy state claims process to recover their assets.
A Sign of Broader Banking Shifts
This move by major financial institutions underscores a broader trend: banks are reducing risk and cutting costs by clearing out inactive or low-engagement accounts. Holding funds and maintaining dormant accounts places a burden on banks, which are now seeking to streamline operations in a rapidly evolving financial landscape.
Some financial experts warn that this could be a signal of deeper industry concerns. The public alert from Bank of America suggests that internal forecasts may be triggering preemptive actions.
Bottom Line: If you haven’t interacted with your bank account in over a year — especially in states with stricter inactivity rules — now may be the time to log in, move funds, or make a transaction. Inaction could result in account blocks, fund transfers to the state, and long delays in retrieving your assets.
Stay tuned as this story develops and more banks update their account management policies.
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