'Will my dormant account still exist after five years?'

I didn’t leave any debts but I have never returned to the country as I expected I would. I have a few questions. The account was with a bank that no longer exists, so is my money now with another bank? I have been told that as I haven’t been in contact or done anything on the account that it will be frozen. How do I access it now? Is there a time limit on accounts that are left behind or will I lose my money? HB, New Zealand

HB's account was with a lender that was involved in a bank merger. However, all accounts from the original bank still exist. For several years, accounts are marked as dormant if there is no activity for six months, although some financial institutions wait for a year now. Such accounts can be reactivated if the account holder makes contact with the bank. Banks will usually ask for someone to visit in person with proof of identity, however, they should be able to accept certified documentation from abroad although processes will differ from bank to bank.

According to a Central

Bank of the UAE circular, issued in February 2011, Article 9b says: "None of the opened accounts can be considered 'dormant' if the customer's address is known or if the customer is present and has other active accounts with the bank. Accounts are classified as dormant only in accordance with the provisions of these regulations issued by the Central Bank in this regard."

The rules regarding dormant accounts were updated in a 2018 Central Bank circular. This states that most personal accounts are officially dormant if there have been no transactions for a period of six years. If an account remains dormant and balances unclaimed for a period of seven years from the date of the last transaction, and the balance exceeds Dh3,000, the balance can be transferred to the Unclaimed Balances Account at the Central Bank. There are specific procedures that banks follow to do this.

Banks are expected to keep customer records up to date and are not permitted to charge fees on dormant accounts with balances of less than Dh3,000. If someone leaves the UAE but retains an account, it is best to ensure there is the odd transaction to ensure it is not marked as dormant. A customer who leaves her bank account alone for an extended period of time may find a nasty surprise when she eventually tries to claim her funds. Banks can declare accounts dormant after a period of time documented in their account agreements with customers, and eventually the accounts can be declared inactive by the state. The former situation can cost you money in added fees, while the latter complicates the effort to reclaim your money.

Open Vault

Leaving your account inactive can move your cash from bank vault to state coffers. Dormant Accounts Dormant accounts are defined by the individual bank. Often, banks consider accounts dormant after six months to one year of inactivity, meaning no transactions have been processed against the account in that time. This may be more or less time than what the state defines as an inactive account. Banks set their own rules regarding dormant accounts and can charge a fee to maintain them, according to their agreements with account holders, until the account becomes inactive.