Bank of America Warns: Inactive Accounts Risk Closure and State Seizure

Inactivity Period: Accounts typically risk being flagged as "abandoned" after three years or more with no customer-initiated activity.

Escheatment Process: If flagged, BofA may notify the customer. If there's no response, funds can be transferred to state custody under escheatment laws (which vary by state).

Affected Accounts: This policy applies broadly, including checking, savings, IRAs, CDs, stocks, safe deposit box contents, and uncashed cashier's checks.

Prevention: Regular logins, transactions (deposits, withdrawals), and keeping contact information updated are key to maintaining account activity.

Why This Matters: Inactivity can lead to losing direct access to your funds, requiring you to navigate state processes to reclaim them. Staying proactive prevents complications and ensures your assets are secure.

Notification: BofA typically sends a letter warning the customer about the impending escheatment.

State Transfer: If the customer doesn't respond or reactivate the account, the funds or property are reported and remitted to the appropriate state agency for custodial safekeeping.

Regular Interaction: Log into your online/mobile banking periodically, even if just to check balances.

Perform Transactions: Make small deposits, withdrawals, or transfers. Set up automatic transfers if helpful.

Update Contact Info: Ensure your address and phone number are current so you receive any notifications.

Utilize Alerts: Set up account alerts via BofA's platform for balance changes or inactivity warnings.

Individuals with multiple bank accounts who might overlook one.

People living or working abroad for extended periods.

Those who prefer offline banking and might not log in digitally.

Heirs or executors managing estates who may be unaware of all existing accounts.

Q: What does 'escheatment' mean for my Bank of America account?

A: Escheatment is the legal process where unclaimed property (like funds in an inactive bank account) is turned over to the state government for safekeeping. This typically happens after about three years of inactivity on a BofA account.

Q: How can I easily keep my Bank of America account active?

A: Simply logging into your account online or via the mobile app, making a deposit or withdrawal, transferring funds, or even updating your contact information counts as activity and prevents the account from being deemed abandoned.

Q: Does this policy only apply to checking accounts?

A: No, Bank of America's inactivity policy can apply to various financial holdings, including savings accounts, IRAs, CDs, stocks, safe deposit box contents, and uncashed cashier's checks.

Don't let your accounts become dormant. Regularly check in on all financial accounts, not just primary ones.

Understand that inactivity, typically 3+ years, can trigger the escheatment process, sending your funds to the state.

Proactive steps like small transactions or logging in are simple ways to maintain activity.

Keep your contact information updated with the bank to ensure you receive important notices.

Utilize digital banking tools and alerts offered by Bank of America for easier monitoring.

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