Checking accounts or CDs at banks, or saving and loans can become abandoned if the rightful owner fails to communicate an interest in such over a period of time. This occurs fairly common due to a period of inactivity, a death of a family member, a name change due to a divorce or marriage. In some cases an individual in switching banks believe they have closed or emptied the account but left a balance in it. It is also possible one could have lost financial records in a flood, fire or even in a spring-cleaning binge.

The rules governing unclaimed bank accounts vary from state to state. But in general, after about two years without any activity (one made no withdraws or deposits or haven't cashed a check) and after the institution's efforts to reach you fail, the property will be considered abandoned and will "escheat" (a fancy legal term for being transferred) to the state of one's last known address. The dormancy period for saving accounts and CD's is normally longer than that for abandoned checking accounts.

Even if the bank branch moved, failed or was part of a merger and changed names, a lost bank account can be retrived.The wave of closing and failed banks and saving & loans during the 1980s, resulted in the passing of the Financial Institutions Reform Recovery & Enforcement Act of 1989. Its terms allow one to recover these unclaimed monies up to $100,000 as insured under the Federal Deposit Insurance Corporation (FDIC). The Unclaimed Deposit Amendment Act of 1993 gave further protection for depositors in failed banks and savings & loans. Click here for information concerning unclaimed Credit Union shares.

Even if the bank failed or you have lost the passbook don't think that your money is lost forever - one still is able to recover these unclaimed monies. However, there may be a time limit so it is prudent to act promptly. For information on unclaimed bank, saving and loan accounts or lost CD's order our Search and Report. (There is a $15.00 fee for this Service)