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5 Critical Steps: What Happens To Your Bank Of America Inactive Account (And How To Stop Escheatment)

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Are you worried about an old Bank of America account you haven't touched in years? As of December 2025, the policy governing your inactive or dormant account is not a simple, fixed rule from the bank itself; it is a complex process primarily driven by state escheatment laws. Ignoring an inactive account can lead to your funds being turned over to a state government agency as 'unclaimed property,' a process that is often irreversible without significant effort. This in-depth guide breaks down the Bank of America inactive account policy, the typical dormancy timeline, potential fees, and the exact steps you need to take today to protect your money.

The core policy is clear: Bank of America must comply with the unclaimed property laws of the state where the account was opened. This means the timeline and process can vary significantly depending on your state of residence. The key to prevention is understanding the dormancy period and performing a simple, customer-initiated transaction to reset the clock.

The Bank of America Dormancy Timeline and Escheatment Process

The journey from an active to an abandoned account involves a three-stage lifecycle: Active, Dormant/Inactive, and Escheated. Understanding this timeline is crucial for any Bank of America customer with multiple or infrequently used accounts.

Stage 1: Inactive or Dormant Status (Typically 1-3 Years)

An account enters an Inactive or Dormant status when there has been no customer-initiated activity for an extended period. The exact definition is outlined in the Bank of America Deposit Agreement and Disclosures.

  • Definition of Activity: Activity generally includes deposits, withdrawals, transfers, or any communication with the bank regarding the account. Automatic transactions, such as interest payments, usually do not count as "customer-initiated activity."
  • Dormancy Period: For most standard checking accounts and savings accounts, the typical dormancy period before the bank must begin the escheatment process is three to five years, though this is entirely dependent on the escheatment laws of your specific state. Some states, like New York, have shorter periods, while others may have longer ones.

Stage 2: Due Diligence and Notification

Before Bank of America can turn your money over to the state, they are legally required to perform a due diligence process. This usually happens within six months to a year before the escheatment deadline.

  • Notification Letters: The bank will attempt to contact the account holder via mail at the last known address on file. They may send a letter warning you that your account is about to be declared unclaimed property.
  • The Critical Window: If you receive this letter, you are in the final critical window to prevent escheatment. A simple response or transaction will typically reactivate the account.

Stage 3: Escheatment and Unclaimed Property

Escheatment is the final, irreversible step where the bank reports the account balance and remits the funds to the appropriate state agency for custodial safekeeping.

  • Account Closure: Once the funds are escheated, Bank of America will close the account.
  • State Custody: Your money is now held by the state's unclaimed property division. The state acts as the custodian, and you—or your heirs—can file a claim to recover the funds at any time.

The Truth About Bank of America Inactivity Fees

A common misconception is that Bank of America charges a flat, recurring inactive account fee that drains the balance. The reality is more nuanced, especially for standard deposit accounts.

While the Deposit Agreement states that abandoned accounts "may be closed and charged fees," a specific, universal *inactivity fee* for standard checking and savings accounts is not a widely advertised or common charge before escheatment. The primary financial threat is not a small, recurring fee, but the potential loss of access to your funds through escheatment.

The fees you should be most aware of are the standard monthly maintenance fees associated with certain account types (like Advantage Plus Banking). If an account is inactive, it may fall below the minimum balance required to waive the monthly fee, causing the balance to slowly deplete until it reaches zero. This zero balance can accelerate the closure process.

4 Essential Steps to Reactivate Your Dormant Bank of America Account

If you suspect your Bank of America account is dormant or inactive, the process to reactivate it is straightforward, but it must be initiated by you, the customer. Do not delay, as once the funds are escheated, the process becomes significantly more complicated.

1. Contact Bank of America Immediately

Your first step is to call Bank of America’s customer service line or visit a local banking center. You will need to speak to a representative to confirm the account's status (Active, Dormant, or Escheated) and the exact steps required for reactivation.

2. Perform a Customer-Initiated Transaction

To reset the dormancy clock and bring the account back to an active status, you must perform a transaction. This can be:

  • A small deposit or withdrawal.
  • A transfer between your Bank of America accounts using Online Banking or Mobile Banking.
  • An inquiry or update at a physical branch.

The key is that the activity must be initiated by you, the account holder, and not an automated system. This action will reset the dormancy period to zero.

3. Update Your KYC Information

If the account has been dormant for a very long time, Bank of America may require you to update your Know Your Customer (KYC) information. This typically involves verifying your identity, current address, and contact information. You may need to visit a branch with a valid photo ID for this step.

4. Search for Escheated Funds (If It's Too Late)

If the bank confirms the funds have already been escheated, you must use the state's unclaimed property search tool. Each state maintains a database of unclaimed funds. You can start your search through the National Association of Unclaimed Property Administrators (NAUPA) website or directly through your state's official government website.

Searching for unclaimed money is free and is the only way to recover funds once they are in the custody of the state treasury department or other designated state agency. This process requires filing a formal claim, which can take several weeks or months to process.

5 Critical Steps: What Happens to Your Bank of America Inactive Account (And How to Stop Escheatment)
bank of america inactive account policy
bank of america inactive account policy

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