When a bank account sees no customer-initiated activity for an extended period—typically 12 to 24 months—the bank will first classify it as “inactive” and may begin charging monthly inactivity or dormancy fees. These fees usually range from $5 to $25 and can slowly drain, or even completely deplete, smaller account balances. Note that automatic system functions, such as the posting of interest, do not count as “activity” to keep an account active.

If the account remains completely untouched for a longer period, typically 3 to 5 years depending on state laws, it becomes subject to an automatic legal process called escheatment. Before this happens, the bank is legally required to try and contact you, often sending a final warning about a month before the funds are transferred.

If the bank receives no response, it closes the account and transfers the remaining balance to the state treasury as unclaimed property. This transfer process applies to cash as well as uncashed checks, safe deposit box contents, stocks, insurance claims, and retail gift cards. Once the state receives the funds, they are put into the treasury and used for public initiatives like roads, schools, and law enforcement. The state may also liquidate any securities after holding them for a limited time.

However, you do not permanently lose your money once it has been surrendered to the state. There is no statute of limitations on claiming escheated funds. If you or your heirs eventually come forward, you can file a claim with the state—usually requiring a government-issued ID, your Social Security number, and proof of address—and the state is obligated to return the cash value of the assets to you.