Idle Bank Account Warning: How to Keep Your Money From Being Taken by the State

It sounds extreme, but it happens more often than people think. Leave a bank account untouched for too long, and the money can be removed and sent to the state.

This process, handled under state law, is triggered when accounts become inactive. And once it starts, getting your money back can take time.

Here’s what you need to know and what you can do right now to avoid it.

Don't miss: From $5 to Thousands: What Kentuckians Are Finding in Unclaimed Money

Why idle accounts are at risk

Banks are required to turn over inactive funds through a process called escheatment. It applies across all 50 states.

In most cases:

• Accounts are flagged after 3 to 5 years of no activity
• Some banks may start tracking inactivity much earlier
• Automatic deposits or interest do not count as activity

Once the account is labeled dormant, the balance can be sent to the state as unclaimed property.

Worth reading: The State By State Guide to Unclaimed Assets

The hidden risk: fees can drain your account first

Before the money even reaches the state, inactivity fees can reduce or wipe out your balance.

Typical issues include:

• Monthly inactivity fees between $5 and $20
• Small balances getting depleted over time
• Failed automatic payments tied to the account

In some cases, accounts are emptied before owners even realize there’s a problem.

What retirees and account holders can do right now

You don’t need major changes to protect your money. Small actions are enough.

Keep your account active

• Make a small deposit or withdrawal every few months
• Transfer money between accounts occasionally

Automate simple activity

• Link a small recurring charge (like a subscription)
• Set up automatic transfers to keep movement consistent

Check your bank’s policy

• Review inactivity timelines and fees
• Choose accounts with lower or no dormancy fees

Keep your contact details updated

• Make sure your bank has your current address
• Watch for notices about inactive accounts

If your money is already gone

There is still a chance to recover it.

Start by searching official databases through the National Association of Unclaimed Property Administrators.

• Searches are free
• You can claim funds at any time in most states
• Avoid third-party services that charge fees

Why this matters more now

Across the U.S., billions in unclaimed money is sitting with state governments. A large portion comes from forgotten or inactive accounts.

Many people don’t realize their money is at risk until it’s already gone.

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