Bank of America customers are being warned that their accounts could be unexpectedly closed if they fail to meet specific activity requirements. The banking giant, which serves more than 69 million clients, is enforcing rules that could see accounts deemed 'abandoned' being shut down and funds transferred to state custody—often without customers fully realising the consequences.
According to Newsweek, Bank of America is legally obligated to close dormant accounts under escheatment laws, which require financial institutions to surrender inactive assets to the relevant state agencies for safekeeping. This measure is not exclusive to Bank of America but applies to all banks operating under US state laws.
Accounts Deemed 'Inactive' Face Closure
The accounts most at risk are those that have not shown any signs of customer-initiated activity for an extended period, typically three years or more. Affected products range from everyday current and savings accounts to long-term investment vehicles like IRAs, Certificates of Deposit (CDs), and even uncashed cashier's cheques or the contents of safe deposit boxes.
Per The Sun, customers will usually receive a formal letter from the bank informing them that their account is considered abandoned. The notice will include instructions to contact the bank and take corrective action to prevent the account—and any funds within it—from being handed over to the state.
Bank of America makes it clear on its FAQ page: 'If you have not accessed your account for an extended period, you may receive a letter from us letting you know your account is considered abandoned and may be turned over to the state under escheat laws.'
Escheatment Laws Vary by State
Each U.S. state has its own criteria for what qualifies as an 'abandoned' account. According to The Economic Times, escheatment refers to the transfer of unclaimed property to the state, including unused bank accounts, cheques, shares, and more. Once a customer's assets are transferred, the original account is closed, and any effort to retrieve the funds must be made through the state's unclaimed property office—a process that typically involves proving identity and ownership.
For instance, Pennsylvania law requires financial institutions to report and transfer dormant assets after a specific period of inactivity. Other states enforce similar requirements for banks, utility companies, and even healthcare institutions.
What Customers Can Do to Avoid Account Closures
To prevent this from happening, Bank of America urges customers to take simple but crucial steps. These include logging into online banking accounts, making periodic transactions, and keeping personal contact information up to date. Even something as basic as checking a balance or using a debit card can reset the inactivity timer on an account.
In addition to checking and savings accounts, assets at risk include:
- Contents of safe deposit boxes
- Cashier's cheques and other financial instruments not yet cashed
- Balances in IRAs and CDs
- Securities such as stocks, bonds, and mutual funds
Digital banking tools also offer customers the ability to set up personalised alerts to monitor account activity and ensure that no account slips into inactivity unnoticed.
According to Newsweek, those who have already received an escheatment notice must respond immediately and follow the provided instructions. If an account has already been turned over to the state, the only recourse is to go through the state's official process to reclaim the funds, which often involves submitting identity verification and documentation linking the individual to the account in question.
Growing Concern as More Branches Close
As traditional bank branches close at record rates across the United States—part of a broader shift towards digital banking—customers who are less digitally inclined may be more at risk. According to The Economic Times, 2025 has seen a sharp uptick in bank closures, making it increasingly difficult for individuals to manage their accounts in person.
The bank's proactive warning comes amid a wave of financial disruption in the sector, with many other banks also enforcing escheatment laws and shuttering dormant accounts. As such, customers are advised to take immediate action to ensure they remain in full control of their assets.
For British account holders with assets or accounts in the US, these developments could have serious implications. Ensuring regular access and maintaining account activity is essential to avoid unintentional forfeiture of funds.
While the escheatment process is designed to protect unclaimed property, it can become a bureaucratic nightmare for customers unaware of the rules. Taking just a few minutes every few months to log into online banking or make a small transaction could make all the difference.
