Running many banks accounts can be overwhelming specially for multi – business owners that some you don’t know that one or two of your accounts have been declared dormant due to no activity in the account.
For instance a lecturer, ran out of money in his salary account, so he has to make withdraw from his other savings account, but his withdrawal request rejected by one ATM to other he got furious that he contacted the bank’s customer care. He was told that his account had become dormant due to prolonged non-operation.
Quickly i will share some things you have to understand about active and dormant accounts.
Let’s dive in

How long does it take for account to be declared inactive or dormant?

When you don’t transact through a bank account for more than 12 months, that account gets classified as an inactive account. If that particular account does not witness any transaction for another 12 months, it is further reclassified as dormant account.

Remember when banks use the term “transaction’, only transactions initiated by you (transaction through debit card, net banking) or a third party are taken into account. Bank-initiated transactions, such as interest on savings balance or penalties and service charges debited by your bank are not considered while classifying your account as inactive or dormant accounts. However, credit of interest, earned from fixed deposits, is considered as customer-induced transaction and helps keep the account active.

You might also like to read 5 banks in Nigeria with the highest paying interest on savings
https://okfiscal.com/5-banks-in-nigeria-with-high-savings-interest-rate/

Restrictions on inactive and dormant accounts

The restrictions on inactive/dormant account vary from bank to bank. While some banks impose restrictions on net banking, phone-banking and ATM transactions, others may even restrict cheque transactions. For example, some banks do not allow ATM, phone banking and net banking transactions in its dormant accounts. However, some don’t allow cheque book request, ATM/Debit card transactions, issue or renewal of ATM/Debit card, address change request, internet banking and cheque clearing transactions in addition to phone banking, ATM and internet banking transactions.
Why you need to reclassify your inactive account

The main purpose of reclassifying the accounts is to reduce the risk of fraud in your account. By reclassifying the accounts, banks warn their staff about the potential risk involved and carry out due diligence before allowing any fresh transaction through them.

Communication from bank before reclassification

Banks are required to inform you at least three months before the reclassification of your account. They are also required to inform you about the procedure for re-activation of your account. If you chose to reply to the bank and provide the reasons for the non-operation of your account, your account will still continue to be considered as an operative account for another year. However, if you still don’t transact through your account during the extended period, your account will be classified as dormant/inoperative account at the end of the extended period. However, you will continue to receive interest on your savings account balance even after your account gets reclassified as a dormant or inactive account.

How to reactivate your bank account?
Hover cover to https://okfiscal.com/3-things-you-should-know-about-active-and-dormant-account/