When money is transferred to a dormant account, it remains there, essentially untouched. The account will continue to be classified as dormant, and the funds will not be actively used or managed.
Dormant accounts are bank or financial accounts that have been inactive for a specific period, typically a year or more. They are not closed but are considered inactive due to a lack of transactions.
Here are some things to keep in mind:
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No automatic action: Banks usually do not automatically move money from a dormant account to an active one.
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Fees may apply: Some banks may charge fees for maintaining dormant accounts. These fees could potentially reduce the balance in the account over time.
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Account closure: If the account balance is very low, the bank might eventually close the account after a certain period of inactivity.
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Access to funds: You can still access the funds in a dormant account, but you may need to contact the bank and provide identification to verify your ownership.
It's important to remember that the specific rules and procedures for dormant accounts may vary depending on the bank or financial institution and the jurisdiction. If you are unsure about the status of an account, you should contact the relevant institution directly.
