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By Dan Cody
Digital Media Reporter
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Bank of America customers across the country could be at risk of losing access to their funds if they fail to meet certain activity requirements.
The financial institution has confirmed it will close accounts deemed inactive under state escheatment laws—a move that could affect a broad range of financial products, from checking accounts to uncashed cashier's checks.
The closures are part of efforts to comply with legal obligations to transfer abandoned assets to state custody and could come as a surprise to account holders unaware of the rules. Here's what banking customers what to know.
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Who Is at Risk of Account Closure?
Bank of America has outlined that customer accounts may be flagged as abandoned if they show no signs of activity for a long period.
"If you have not accessed your account for an extended period (typically 3 years or more), 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," the bank states on its official FAQ page. "You will need to follow the instructions on your letter to contact the bank and prevent escheatment."
The warning applies to a wide range of financial products, including checking and savings accounts, Individual Retirement Accounts (IRAs), Certificates of Deposit (CDs), uncashed cashier's checks, stocks, and safe deposit boxes, The Mirror reported.
If no action is taken by the customer after being notified, funds from these accounts may be turned over to state custody in accordance with applicable laws.
How Different States Treat Bank Accounts
Each state has its own rules regarding what qualifies as an abandoned account and when banks must surrender customer funds.
"Escheatment is the process of reporting and remitting abandoned/unclaimed property to the appropriate state agency for custodial safekeeping," Bank of America explains on its website. "Each state has laws that govern when accounts are considered inactive and/or abandoned and when we're required to send a customer's property to the state."
States like Pennsylvania require financial institutions to report and transfer dormant assets after a set period of inactivity, a rule that affects more than just banks—it also includes utilities and health care institutions, according to PennLive.com.
What Bank of America Has Said
To avoid triggering escheatment procedures, the bank urges customers to stay engaged with their accounts.
"We encourage you to log in and check your balances regularly to keep your accounts active," Bank of America advises on its FAQ page.
This recommendation is especially important as more services move online and many branch locations close across the country. Simple steps—such as checking balances, using debit cards, or logging into digital banking—can prevent accounts from becoming inactive.
Customers who receive an escheatment notice are encouraged to respond promptly and follow the instructions provided in the letter to ensure continued access to their funds.
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