What to Know About Unclaimed Bank Accounts and How to Stay Compliant

When bank accounts go inactive, institutions face the dual challenge of maintaining compliance and protecting customers’ assets. Across the U.S., billions of dollars in unclaimed bank accounts are transferred to state treasuries each year. For financial institutions, understanding what qualifies as “unclaimed” and how to manage the escheatment process efficiently is key to avoiding penalties and maintaining customer trust.

What Are Unclaimed Bank Accounts?

An unclaimed bank account refers to a checking, savings, or other deposit account that has had no owner-initiated activity for a specific period - typically three to five years, depending on the state. Once the dormancy period ends, the account is considered abandoned and must be reported and remitted to the state’s unclaimed property division.

Common examples include:

• Checking or savings accounts with no deposits or withdrawals
• Certificates of deposit (CDs) that have matured without renewal or withdrawal
• Money market accounts with no communication from the account holder

Why Dormant Accounts Matter

Unclaimed accounts don’t just represent idle funds - they reflect potential compliance risks. Each state enforces its own escheatment laws, requiring financial institutions to:

1. Identify dormant accounts based on last activity or owner contact
2. Attempt to contact the owner through due diligence outreach
3. File and remit the funds to the appropriate state agency

Failing to report or remit accurately can lead to interest assessments, penalties, and audits that consume valuable time and resources.

The Complexity of State-by-State Compliance

Each state defines dormancy periods, report deadlines, and owner notification requirements differently. For example, some states may classify interest payments as activity, while others do not. Staying current on these variations is critical, especially for institutions operating across multiple jurisdictions.

Without automation, managing these nuances manually can be burdensome. Missing a single deadline (or misunderstanding a dormancy rule) can trigger costly compliance gaps.

How Technology Simplifies the Process

At Eisen, we believe compliance should be clear, proactive, and results-driven. Our platform helps financial institutions:

• Automate the identification of dormant accounts across multiple systems
• Streamline owner outreach using approved templates and timelines
• Generate accurate NAUPA-compliant reports for each jurisdiction
• Maintain audit-ready documentation to reduce risk and ensure transparency

With these capabilities, teams can shift their focus from chasing deadlines to building stronger customer relationships and strategic initiatives.

Reuniting Customers With Their Funds

Behind every unclaimed account is a customer who may have simply moved, forgotten, or lost access to their financial information. By following a structured and automated approach, institutions not only meet regulatory obligations - they also help reconnect people with their money. This creates goodwill, reinforces trust, and strengthens brand reputation.

The Bottom Line

Managing unclaimed bank accounts is more than a regulatory responsibility; it’s a chance to demonstrate reliability, care, and integrity. Eisen empowers financial institutions to navigate these obligations with confidence through automation, clarity, and compliance expertise.

Learn more about how Eisen helps banks and financial institutions simplify unclaimed property compliance by exploring our escheatment services.