Dormant account

Dormant account,

Definition of Dormant account:

  1. In general, a low-balance savings account which has shown no activity (deposits and/or withdrawals) over a long period, other than posting of the interest and/or service charges. Statute of limitations usually does not apply to dormant accounts, and their funds can be claimed by their owner or beneficiary at any time.

  2. Accounts that can become dormant include checking and savings accounts, brokerage accounts, 401(k) accounts, pension fund accounts, and other accounts for financial resources.

  3. A dormant account is an account that has had no financial activity for a long period of time, except for the posting of interest. Financial institutions are required by state laws to transfer resources held in dormant accounts to the state's treasury after the accounts have been dormant for a certain period of time. The amount of time varies depending on the state.

How to use Dormant account in a sentence?

  1. Accounts that can become dormant include checking and savings accounts, brokerage accounts, 401(k) accounts, pension fund accounts, and other accounts for financial resources.
  2. A dormant account is an account that has had no financial activity for a long period of time, except for the posting of interest.
  3. After the dormancy period, which varies by state, dormant accounts become the unclaimed property of the state.

Meaning of Dormant account & Dormant account Definition