Banking
Bank of America Account Closures: What You Need to Know
Bank of America customers may face account closures if their accounts are deemed inactive for an extended period. However, this is not a new policy but rather a standard banking practice aligned with state escheatment laws. According to Bank of America’s FAQ page, accounts that remain inactive for three years or more may be flagged as abandoned. This applies to checking and savings accounts, Individual Retirement Accounts (IRAs), Certificates of Deposit (CDs), uncashed cashier’s checks, stocks, and even safe deposit boxes. If an account is categorized as abandoned, the bank may transfer the funds to the state under escheatment laws.
What Is Escheatment?
Escheatment is the process by which unclaimed or abandoned property is reported and transferred to a state agency. State laws dictate when a financial institution must classify an account as abandoned and take appropriate action.
A Bank of America spokesperson emphasized that this practice is not unique to the institution. “Every bank is required to follow state laws on what to do with abandoned accounts,” the representative told PIX11 on March 28, 2025.
Before closing an account, the bank typically sends a notice to the account holder, informing them that their funds may be subject to escheatment. Customers are advised to follow the instructions in the letter to prevent their funds from being turned over to the state. If no action is taken, the money is transferred to the appropriate state agency for safekeeping.
— Bank of America (@BankofAmerica) January 23, 2025
How to Prevent Account Closures
To avoid account closures due to inactivity, Bank of America recommends customers take the following steps:
Log into their online banking account periodically
Regularly check their account balances
Use their debit card for transactions
By staying engaged with their accounts, customers can prevent their funds from being classified as abandoned.
Bank of America has not announced any recent changes to its policies regarding account closures. For customers concerned about their accounts, staying informed and actively managing their finances is key to ensuring continued access to their funds.
