Do you have any doubt to active your inactive account? Inactivation of an account is common when you use more than one account. Without money, we could not spend even a day. To avoid these issues, you need to keep an account active always. There are many ways to keep your account active. First, you need to open saving account in your bank. Need to fill in the necessary thing asked in the form. After a few days, your account becomes active. To keep your account active you need to do at least one transaction per year. If you didn’t maintain the withdrawal and transaction properly, your account will become inactive. Here are a few things to keep your savings account active:
Understanding an Inactive or dormant account:
The account gets inactive when you don’t make any transactions in your bank account for 12 months.
When there is no transaction in your bank account for about 24 months, your account gets inoperative or dormant by the bank.
In order to reduce the risk of fraud and any misuse of your account, Accounts are classified as active, inactive, and dormant. With these segregations, the banks eliminate the risks involved in these accounts.
Knows about the classification of a dormant account:
The bank sends the notification to the account holder for at least three months in advance to inform them about the expiry of their account. You may also be informed about the procedure and how to reactivate your account. If the bank still sees no subsequent transactions further, your account will be considered as a dormant bank account.
If you provide the necessary reason why you were not active in your account, your bank may consider your account as an operative account for one more year. If you fail to operate the account during the extended period, then it will be considered as a dormant account when the period ends.
You would continue to receive interest on your open saving account even after the reclassification as a dormant or inactive account.
Reactivating your bank account:
The process of reactivating your bank account is a easy process:
- You must submit a written application to your respective bank. Signatures of all accountholders will be needed for joint accounts.
- You have to submit your Know Your Customer documents. In that, it includes address proof, PAN card, and identity documents.
- You need to do at least one financial transaction.
There are no fees or penalties charged to activate your account. To avoid keeping your account dormant, use your account regularly.
Cards, passbook, and chequebook:
Accountholders are advised to bring their ATM cards, chequebooks, and passbook for activating their account.
Be prepared for due diligence from the bank:
Re-activation for a dormant account will be handled as meticulously by your bank as opening a new account since unused balances may lie in such accounts.
Bottom line:
These are the reasons to have a dormant account. By following the steps, you can keep your account active. By opening a savings account, you can able to access your account quickly. To prevent it from turning inactive, conduct at least one transaction, online or offline, every year.
