Attention, Iowa, Illinois, and Wisconsin Residents: Your Bank Accounts Could Be at Risk!

Bank of America isn’t the only bank making headlines with its latest announcement about inactive accounts. In fact, financial institutions across the country are tightening policies on inactive or abandoned accounts. If you haven't been keeping an eye on your account lately, this could affect you, so here’s what you need to know.

What’s Happening?

Many banks, including Bank of America, are warning customers that their accounts could be closed or locked if there’s no activity for a long period. Typically, that is around three years of abandonment. When an account goes inactive, the bank is required by state law to notify the account holder. If no action is taken, the funds may be transferred to the state’s custody as “unclaimed property.” That means your money could be held by the state until you claim it.

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It’s Not Just Bank of America

While Bank of America is the most recent to make this announcement, this is not just a Bank of America issue. Other major banks like Chase, Wells Fargo, and even local banks across the Tri-States must comply with similar state regulations. If you don’t stay active with your account, the same thing could happen to your funds, no matter where you bank. If your funds are simply held in a piggy bank, no worries.

Why Does This Happen?

The rules surrounding unclaimed assets (like inactive bank accounts) are set by each state to prevent banks from holding onto forgotten or unused money. Each state has its own time frame for when an account is considered "abandoned," and most have laws that require banks to turn over abandoned funds to the state. So, whether you’re in Iowa, Illinois, or Wisconsin, the laws are in place to protect residents’ money, but also to ensure that it doesn’t stay in limbo forever. Rules for each state can be found below:

Iowa Unclaimed Property or Escheatment Laws

Illinois Unclaimed Property or Escheatment Laws

Wisconsin Unclaimed Property or Escheatment Laws

To avoid your account being classified as inactive, here are a few simple steps you can take:

• Make Regular Transactions: Whether it’s transferring funds or making a purchase, keep the account active.
• Check Your Account Regularly: Online banking and mobile apps make it easy to keep track of your balance and activity.
• Update Your Information: Make sure your bank has your current contact details so you don’t miss important notifications.
• Cash Checks Promptly: Don't let uncashed checks sit for too long.

If you need more information about how your bank handles inactive accounts, contact your bank directly or visit their website. Keeping your account active is key to ensuring your hard-earned money stays yours. This information could be especially important for individuals at the end of their lives or families dealing with loss. By keeping your accounts active, you can avoid the risk of losing access to your funds for both you and your family should the worst occur.