What happens if I make a bank account and never use it?

Consequences of Leaving a Bank Account Unused

Opening a bank account can be a convenient way to manage your finances, but what happens if you create an account and never use it? While it may seem harmless, there are potential consequences that can affect your financial health.

Maintenance Fees and Interest Penalties

Many banks charge maintenance fees on inactive accounts. These fees can range from a few dollars to hundreds of dollars per year, which can quickly accumulate if the account remains unused. Additionally, interest-bearing accounts may stop earning interest if they fall below a minimum balance requirement.

Account Closure

Banks may close inactive accounts after a certain period of disuse. The exact timeframe varies depending on the bank’s policies, but it’s typically several months or years. If your account is closed, any remaining funds will be forfeited, and you may have to pay a closure fee.

Lost Funds

If your inactive account is closed and you have outstanding debts or recurring payments linked to it, those payments may be missed, resulting in late fees or penalties. This can damage your credit score and negatively impact your financial situation.

To Avoid Consequences:

• Close the account: If you no longer need the account, contact the bank to close it. This will prevent maintenance fees and the risk of account closure.
• Maintain a minimum balance: If you want to keep the account open, maintain a balance above the minimum requirement to avoid interest penalties.
• Set up automatic deposits or withdrawals: Schedule regular deposits or withdrawals to keep the account active. This can be as simple as setting up a recurring transfer from another account or depositing cash periodically.
• Use the account for essential payments: Consider using the inactive account to pay for regular expenses, such as utilities or insurance premiums. This will ensure that the account remains active and earns interest if applicable.

Leaving a bank account unused can have negative financial consequences. By understanding the potential risks and taking appropriate steps, you can protect your funds and avoid unnecessary fees or penalties.