A dormant bank account is a bank account that hasn't been used to make payments or receive deposits in an extended amount of time, usually 1 to 2 years.
Every bank handles dormant accounts in a slightly different way, but generally, after a set period of inactivity, a bank will change an account's status to dormant. Before this happens, a bank will usually reach out to the account holder, attempting to re-establish contact and activity. If the account remains dormant, most banks will start charging maintenance fees.
If your bank account has gone dormant, there are steps you can take to reactivate it. Typically, this involves making a transaction or directly contacting the bank to confirm your interest in keeping the account active. Some banks will transfer your balance to the Bank of Canada after the account has been dormant for 10 years, so be sure not to leave it too long.
Key Takeaways
- Dormant accounts have seen no activity from account holders for 1 to 2 years.
- Maintenance fees between $20 to $60 are charged by banks until account activity resumes.
- After 9 years of inactivity, the bank will turn your account balance over to the Bank of Canada at the 10 year mark.
- To reactivate a dormant account, conduct a transaction using the account or contact your bank.
What is a dormant bank account?
A dormant account is a bank account that hasn’t seen any activity, such as deposits or withdrawals, for a certain period. Most banks don’t start charging inactivity fees until the account has been dormant for 2 years.
Reactivating a dormant account involves making a transaction or contacting the bank to confirm the owner's interest in keeping the account active.
Dormant bank account fees by bank
Let’s explore the fees that some of Canada’s largest banks charge for maintaining dormant accounts:
| Bank | Inactive bank account fee |
|---|---|
| RBC | * $20 for accounts inactive 2 - 8 years * $40 for accounts inactive 9 years |
| CIBC | * $20 for accounts dormant 2 - 4 years * $30 for accounts dormant 5 - 8 years * $40 for accounts dormant 9 years |
| BMO | * $20 for accounts dormant 2 years * $30 for accounts dormant 5 years * $40 transfer fee to Bank of Canada for accounts dormant 10 years |
| Scotiabank | * $20 for accounts formant 2 - 4 years * $30 for accounts dormant 5 - 8 years * $40 transfer fee to Bank of Canada for accounts dormant 9 years |
| National Bank | * $20 for accounts dormant 1 year * $30 for accounts dormant 2 years * $40 for accounts dormant 3 - 5 years * $50 for accounts dormant for 6 - 7 years * $60 for accounts dormant 8 - 9 years |
What to do about a dormant bank account
If you have a dormant account and wish to make it active again, sometimes it’s as simple as making a transaction. If that doesn’t work, just call or visit your bank and ask them to reactivate your account.
It’s important not to leave this for too long, as acting quickly can save you steep inactivity fees and prevent the bank from transferring your funds over to the Bank of Canada.
After 9 years, banks will consider the dormant account to be unclaimed. At the 10 year mark, Canadian banks will transfer the funds from these accounts to the Bank of Canada. This rule is specific to Canadian currency products, so anything in foreign currencies, like U.S. dollar accounts, doesn't follow this path.
Your experience with dormant bank accounts
Have you ever let a bank account go dormant? Did you try to reactivate it? If so, how did that work out?
We'd love to hear your stories and strategies in the comments below. Let's help each other stay financially savvy and avoid those dormant account fees!
FAQ
What does a dormant bank account mean?
A dormant bank account refers to an account that hasn’t been used to make any financial transactions, such as deposits or withdrawals, for a year or two.
Can a dormant bank account be reactivated?
Yes, a dormant bank account can often be reactivated. Sometimes it’s as simple as making a transaction, and other times the account holder must provide identification to restore full access to the account.
Can banks charge for a dormant account?
Yes. Most banks begin charging fees after an account has been inactive for 2 years. The fee is withdrawn from the account balance.
How long can a bank account be dormant?
Most banks will allow an account to remain dormant for up to 10 years, charging fees each year the account is not used. After 10 years, the banks transfer the account balance to the Bank of Canada.
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