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Bank of America warns dormant accounts could be closed under escheatment laws

Bank of America, one of the largest banks in the US with more than 69 million customers, has issued a stern warning that accounts that are considered inactive or abandoned could be cancelled or their funds transferred to state custody as of March 28, 2025. The policy, which is based on states' escheatment laws, has sparked discussion among customers and financial experts. Here's everything you need to know about this little-known legal rule, along with recent updates on why it's happening, how to keep your account safe and what it means for the future of banking.




Why is Bank of America cancelling accounts

This announcement by Bank of America is not a new policy but a reiteration of old state rules that govern unclaimed property. These are called escheatment laws, under which financial institutions are required to transfer funds from dormant accounts to state agencies, usually after 3 years or more of inactivity. The bank cleared March 28, 2025 on its website.


If you have not accessed your account for a long period of time, generally 3 years or more, you may receive a letter from us informing you that your account is considered abandoned and may be transferred to the State under Escheat laws.


This is not limited to Bank of America, all US banks have to follow these laws. But the bank is under greater scrutiny due to its huge customer base and recent glitches such as on October 2, 2024 when customers saw 0 in their accounts. This proactive message from the bank in March 2025 seems to be an attempt to spread awareness amid customer concerns and the growing trend of digital banking.


Realtime updates on what's happening today

Posts on Twitter before 28 March 2025 at 535 PM PDT show that customers have become more aware following reports from media such as The Mirror US Newsweek and The Independent. Many are sharing tips and expressing confusion over the definition of activityIn some states, simply logging in is not enough, making compliance more complicated.


What are the requirements

What Bank of America is checking is activity or lack of it. If there is no customer initiated transaction, deposit, withdrawal or transfer in an account for a long time, then it is considered abandoned. This rule applies to these accounts


  • Checking savings Accounts

  • IRAs are retirement accounts

  • CDs Certificates of Deposit

  • Uncashed Cashier's Checks

  • Safe Deposit Box Items

  • Securities like stocks/bonds


Once the account crosses this limit, the bank notifies the customer. If there is no response, the funds are transferred to the state's unclaimed property division. Customers can claim their money later but the process is lengthy and documentation-intensive.


Expert Opinion What Financial Advisors Say

CFP Sarah Kline explained in an exclusive interview on March 28, 2025


This is not like Bank of America targeting customers. These are decades-old state laws. But with digital banking, people tend to forget about secondary accounts like IRAs or old savings. My advice is to set a reminder to check all accounts at least once a year.


How to prevent your account from being abandoned

Bank of America has some easy ways to make money which we've expanded with practical tips


  • Make regular transactions Even a small deposit/withdrawal is enough. For example, make 1 transfer between accounts every 6 months.
  • Stay digitally active
  • Login to your bank app/website regularly. Set up low balance alerts.
  • Keep your contact details updated
  • If the bank sends you a warning letter and your address is wrong, you may miss out.
  • Cash your checks instantly
  • Uncashed cashier’s checks are an easy target for escheatment.
  • Monitor all accounts Don't overlook less-used accounts like CDs and IRAs.


Bonus Tip Set AutoTransfer of Rs 5 per month for automatic activity.


Recent Data and Stats

  • According to NAUPA, by 2024, the States had more than $60 billion worth of unclaimed property.
  • Tododisca's 2025 report says that 1 in 10 American accounts is at risk of being deactivated due to neglect.


Controversy and Latest News

  • In April 2024, MAGA supporters called for a boycott of the bank when accounts linked to Trump lawyer John Eastman were closed, although this had nothing to do with the escheatment.
  • The March 2025 warning has sparked a debate about transparency, with some customers saying the bank should send text alerts and not rely solely on letters.
  • According to Union Rayo's January 2025 report, the closure of 200 branches from 2022 will have a greater impact on elderly and rural customers who require in-person services.


what does it mean for the future

Bank of America's warning points to a larger trend: in the age of digital banking, the responsibility for account management is increasingly placed on customers. In February 2025, FinanceBuzz reported that the bank would open 165 new locations by 2026, but customers will have to remain active themselves.


Final Thoughts

If you are a Bank of America customer, check your accounts today. A simple login or transaction can save you from future trouble. As Sarah Kline says


Banking in 2025 is not just about money, it's about staying connected.


Stay tuned for updates on this story and share your experiences in the comments



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