When you are dissatisfied with your bank’s services, you have the option of canceling your connection with the bank and opening a new checking account with a different bank. A bank can drop its connection with you at any moment, on any day. You could wake up one cold morning to find that your bank has closed your account. You might also find out when attempting to complete a transaction. If a bank cancels your account for reasons that bother you, you’ll want it restored immediately. Is this, but, a possibility? Is it possible to re-open a closed bank account?
Depending on the cause for the closure, you can restore your bank account by beginning fresh transactions after a period of inactivity, settling negative amounts, or contacting your bank to clear up any uncertainty about suspicious or fraudulent behavior. Yet, if your bank canceled your account due to a trend of overdrafts or questionable activities, you may be unable to restart it.
What Causes Banks to Close Personal Accounts?
In general, there are three main reasons why a bank may shut your personal checking or savings account:
- Excessive overdrafts/long periods of negative balance
- Suspicious or deceptive behavior
Furthermore, there are minimal laws and regulations governing account closing; banks are free to stop accounts for any reason, at any time, without warning. Banks but provide formal notices of account termination. Below, you look at the most common reason why banks cancel personal accounts and if you may restore the account in each scenario.
Closure Cos of idleness
Banks will identify dormant inactive bank accounts — those with no transactions for an extended period of time — and cancel them because they are costly to maintain. Dormancy differs from account closure in that a dormant account remains active but cannot be used. Dormant accounts are no longer open to new transactions, online banking, check requests, and so forth.
Banks will submit the monies in your account (whether checking or savings) to the state government as unclaimed property after a lengthy period of inactivity. This can happen when a dormant account has been inactive for three to five years. If your bank sent the funds in your dormant account to the state, you can reclaim them by contacting your state treasury or unclaimed property office and submitting a claim.
It is important to note that the length of time you may keep an inactive bank account open varies depending on state legislation and the requirements of the specific bank.
You may reopen a dormant account by performing a transaction deposit or withdrawal within a set amount of time, yet, you should verify with your bank to ensure that your transaction is enough. Banks are supposed to inform you before reclassifying an inactive account as dormant. , this letter will contain detailed information about how long you have to reactivate the account.