Somewhere out there, your name is likely on a dormant bank account. A dormant account has a low balance, no recent deposits, and it’s not doing you any favors, and it could cost you money.
If you have dormant checking or savings accounts out there, it’s time to consolidate! Consolidating your money into active accounts that you know about, keep track of, and use regularly just makes sense. Dormant accounts still require record keeping by banks and credit unions, and in many cases still require paper statements. Eventually, these accounts are closed and the funds transferred to the state treasury to hold in an unclaimed property fund. The money isn’t “gone,” but it will take some paperwork and phone calls to get it back.
Here are a few ways to avoid this fate:
- Know where your money goes, where it is, and how to get it. When you open one account, close the other. You can also use a mobile app to keep track of your accounts and balances.
- Some people create separate savings accounts for different savings goals. That makes it easy to forget about an account and have it go dormant. To avoid dormancy, simply create a “master” savings account and transfer all the funds from the other accounts to the “master account” every few months.
- Painesville Credit Union CEO Lori Guzzi said automatic deposits automatically keeps your account active. “Always watch for dormant fees!” she said. “Setting up even a small $5 direct deposit keeps your account active and fee free!”
- Don’t forget about your retirement accounts! If you’ve changed jobs, you have to roll over your retirement savings to your new employer. We’re always here to help you reach your financial goals!
Call us at Painesville Credit Union at 440-352-8974 to set up a financial counseling session, open a savings account, or finance your dream car or house!