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How to keep savings account active for ever |
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If the customer does not make transaction in his savings account for more than a year, the bank considers this account as inactive. Regular transaction and fragmentation of expenditure helps to to avoid such situation. |
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| Author: Addi Vardhaman |
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People having more than one savings account are familiar with the inactivation of account system. When using multiple account, it is not always possible to maintain the minimum balance in all and also the make transaction in all in regular interval. These two points lead to the inactivation of the account. In such case, an penalty amount is deducted from the existing balance of the customer. This article gives you a detailed idea regarding the inactivation process and the ways to combat such situation.
How the account becomes inactive?
If the account holder does not withdraw or carry out any transaction in the account for a long period , the account becomes automatically inactive. The transaction may be via the ATM, branch or Internet. If there is no transaction in form for for a period of more than a year banks consider the account as inactive. Usually when a customer does not make any financial transaction through the account for a year, it is classified as inactive. If the account remains unused for almost two years, it is treated as a dormant account by the bank. The customer is debarred from operating the account through the ATM, phone or Internet banking, once it has been classified as inactive or dormant. After payment of the penalty, the customer is allowed the access.
How to make Inactive savings account active.
It should be kept in mind that the bank officials do not inform the customer that his account is inactive or dormant. once the customer with his own effort comes to know that the account is inactive, he/she has to walk into the branch to reactivate these accounts. The banks also do not consider system-generated debits (default charges or debit interest) as a valid withdrawal. So if you do not use the account for a time period more than a year, it is regarded as inactive even if the bank statement may show some debit charges.
How to avoid the situation?
Here are some easy steps to prevent the savings account from being inactive.
1- You should remember that transaction means combination of deposit and withdrawal. Only deposits do not lead to a valid transaction. If you are depositing for one year without any withdrawal, your account may still have the chance to be inactive
2- Make withdrawals at regular interval
3- Do not open savings accounts unnecessarily at multiple banks
4- Fragment your outgoings through different accounts if you have multiple saving accounts
About Author
For more information about high interest rate saving accounts and Online banking services. Please visit our website: http://www.paisawaisa.com/
Article Source:
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