Information > Financial Terms > This page

Inactive Account
Source: Encyclopedia of Banking & Finance (9h Edition) by Charles J Woelfel
(We recommend this as work of authority.)

A bank account that shows a stationary or declining balance and against which both deposits and withdrawals are infrequent; or a broker's account which shows few transactions, either purchases or sales.  Inactive bank accounts, also called dormant accounts, are usually transferred to an inactive accounts ledger.  State statutes usually provide for escheat or forfeiture to the state of inactive or dormant accounts after a specified number of years of inactivity.


Back to Information