Expert issues warning over US bank accounts sitting idle: Money can now be turned over to state. Secure your money ASAP Aditi Ganguly April 26, 2026 9 min read Scripps News, Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. Katelyn Fugate thought she was doing something nice for her young son.
A few years back, she opened a savings account for him — a small starter fund he could build on one day. Recently, she decided to check in on it. Top Picks Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers.
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Worse, when Fugate went looking for it, she couldn't find the money at the bank or the state. "It's definitely not at the bank; they've turned it over. I can't find it on the missing funds [website] as of yet," she said.
How dormant accounts get swept up by the state The process is called escheatment, and it's the law in all 50 states. (2) When an account goes long enough without customer-initiated activity, the bank is required by state law to hand the balance over to the state treasurer's office as unclaimed property. How long is "long enough" varies. Most states set the dormancy period at three to five years for bank accounts — and the trend has been toward shorter windows.
Over a recent 16-year stretch, 17 jurisdictions cut their dormancy periods for bank properties to three years, down from five or seven. (3) Automatic activity doesn't reset the clock. Auto-deposits and interest postings don't qualify as customer-initiated activity (4) — only a deposit, withdrawal or transfer you personally make resets it. Before the money leaves, banks are required to attempt to contact you — typically by mail to your last known address.
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