Is it possible to reactivate a dormant savings account?

Almost all of us have some experience with online banking. Additionally, most people know how to open a bank account online, and it's common to have multiple savings bank accounts. However, it can be difficult to stay on top of multiple savings accounts at all times. You can end up with dormant accounts if you do not manage them for extended periods. If your savings account has been dormant, read on to learn how to reactivate it.

How does your bank account become dormant?

If you do not make any transactions from your savings account for 2 years or more, it can become dormant. You may not be able to access it until your savings account is re-activated.

What is the difference between a dormant and inactive account?

If you make no transactions with your bank account for more than a year, your bank account may become inactive. However, if you do not make any banking transactions for more than two years, your account may become dormant or inoperative. Banks generally classify accounts as dormant or inactive to prevent fraud or misuse.  

Dormant account – classification

Your bank will inform you at least 3 months in advance before it considers your bank account dormant. Also, you may be informed about the process of how to reactivate your bank account number. Despite informing you about the process of how to open a bank account online again, if you do not make the subsequent effort, your bank account may be classified as dormant.

In case you provide the major reasons for not using the account, your bank may consider keeping your account operative for a year or more. If you still fail to operate your account during this extended period, it may be termed dormant after the specified period ends.

Most bank accounts go inactive because of low account activities due to difficulty in accessing the accounts or undesirable features. IDFC FIRST Bank offers savings accounts designed for individuals from all demographics and financial segments. Moreover, you get higher than average savings account interest rates with the option of monthly interest credits.    

What are the restrictions you may face in your dormant account?

Dormant accounts are blocked from making financial transactions. Withdrawals/deposits, fund transfers through online methods such as NEFT, RTGS, IMPS, and others, as well as non-financial requests like debit card and chequebook requests are rejected.

How can you reactivate your bank account?

The reactivation process of your bank account is streamlined and hassle-free. Read on to understand the step-wise process –

• You need to send a written application to your bank mentioning your bank account details classified as dormant. For a joint account, you must provide the signatures of all the account holders.
• You must submit your KYC documents. These documents include a copy of your PAN card, address proof and identity proof.
• Once you have provided all the required documents and applications, ensure to conduct a financial transaction using your bank account.

You won't be charged any penalties or fees for reactivating a dormant account. Just make sure that your bank account is regularly used next time if you don't want it to become dormant. Even if you do not feel the need to conduct regular transactions, make sure to conduct one offline or online transaction a year.