Types of Bank Accounts to be Closed 

If you have a bank account that you haven’t used in a while, it’s time to take action! Starting January 1, banks are set to close three types of accounts: dormant accounts, inactive accounts, and zero-balance accounts. This move is aimed at streamlining banking operations and reducing the risks associated with maintaining unused accounts. Read on to learn more about these closures and what you can do to keep your account active.

1. Dormant Accounts

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A dormant account is one that has been inactive for an extended period, usually 24 months or more, depending on the bank’s policies. These accounts pose security risks, as fraudsters often target them for unauthorized access. To prevent closure, account holders must conduct at least one transaction, such as a deposit or withdrawal, before the deadline.

2. Inactive Accounts

An inactive account is similar to a dormant account but has been left unused for a shorter duration, typically 12 months. Banks categorize these accounts separately to encourage users to reactivate them before they become dormant. If you have an account that you haven’t used in a year, consider making a small transaction to keep it active.

3. Zero Balance Accounts

A zero-balance account is one that has no funds in it for an extended period. Many banks provide such accounts as part of salary packages or government schemes. However, if an account remains at zero balance for too long, banks may close it due to maintenance costs. To avoid closure, deposit a small amount to keep it active.

What You Can Do to Prevent Account Closure

• Check Your Account Status: Log in to your online banking or visit your branch to confirm your account’s activity status.
• Make a Transaction: A simple deposit, withdrawal, or even an online transfer can prevent your account from becoming dormant or inactive.
• Keep a Minimum Balance: If your account is at risk due to a zero balance, deposit a nominal amount to ensure it remains operational.
• Update Contact Details: Ensure that your bank has your latest phone number and email address to receive notifications about your account.

With banks tightening their policies on unused accounts, staying informed and taking timely action can help you avoid account closure. If you suspect your account might be on the list, act now to keep it active and accessible!