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Is Your Bank Account Dormant? Here’s What You’re Losing Out On

July 21, 2025

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You’re digging through an old drawer and stumble upon a bank passbook you haven’t used in years. Excited, you rush to check your balance, only to find out—your account is dormant! Now, instead of accessing your money freely, you’re stuck in a loop of paperwork and verification.

Sounds frustrating, right? But the real issue isn’t just the inconvenience. A dormant bank account can cost you money, security, and financial opportunities—all without you even realizing it.

In this blog, we’ll uncover everything you’re missing out on when your account becomes dormant and why you should reactivate it ASAP!

What Happens When Your Bank Account Becomes Dormant?

A dormant account is a bank account that hasn’t seen any customer-initiated transactions for a specific period— typically more than 24 months. When this happens, banks classify the account as "dormant," restricting transactions and access to certain services.

While this might seem like a minor inconvenience, the reality is far worse. Here’s what you lose out on when your account becomes dormant.

5 Big Financial Benefits You’re Missing Out On With a Dormant Account

1. No More Access to Your Own Money!

Once your account becomes dormant, you cannot withdraw funds or make transactions without going through a reactivation process. Imagine needing emergency cash and realizing your account is locked—it’s a financial nightmare waiting to happen!

2️. Unnecessary Fees & Charges

Banks may impose dormancy fees and minimum balance penalties on inactive accounts. If you’re not using your account but still being charged fees, you’re losing money for no reason.

3. Lost Interest & Investment Opportunities

Keeping money in a dormant savings account means you’re not earning interest or growing your wealth. If your account was linked to investments, those might also be frozen, leading to missed financial growth opportunities.

4. Blocked Debit & ATM Card Services

Your debit card may get deactivated if your account is dormant, blocking your access to ATMs and online payments. This can be a huge hassle, especially if you rely on the account for daily transactions.

5. Higher Risk of Fraud

Inactive accounts are prime targets for fraud. Cybercriminals look for dormant accounts to conduct unauthorized transactions, knowing that account holders rarely monitor them. Without regular activity, you might not even notice fraudulent withdrawals until it’s too late!

Why You Should Reactivate Your Dormant Account

Reactivating your dormant account is not just about regaining access to your money—it’s about restoring your financial flexibility and security. Here’s why you should do it today:

Immediate Access to Funds – No more worrying about locked money when you need it.
Avoid Unnecessary Charges – Save yourself from penalty fees and maintain your balance.
Protect Your Account from Fraud – Regular transactions keep your account secure.
Enjoy Banking Benefits & Offers – Get access to premium services, credit cards, and pre-approved loans.
Maximize Interest Earnings – Ensure your savings are growing rather than lying idle.

Final Thoughts

A dormant account isn’t just an inconvenience—it’s a financial setback. By keeping your bank account active, you protect your hard-earned money, maintain financial flexibility, and unlock banking benefits.

If your account has been dormant for a while, reactivate it today and take control of your finances again!

Secure your future with a Savings Account! Build your wealth effortlessly while enjoying attractive interest rates, instant access to your funds, and seamless digital banking. Whether you're saving for a dream, an emergency, or a better tomorrow, the right account makes all the difference. Open your Savings Account with Ujjivan today and take the first step toward financial freedom!

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FAQs

1. What is considered a dormant bank account?

A savings account with no customer-initiated transactions for 24 months is considered dormant.

2. How do I know if my account is dormant?

You can check your account status by logging into your bank’s app, calling customer service, or visiting a branch.

3. Will my money be lost if my account is dormant?

No, but you won’t be able to access it easily until the account is reactivated.

4. Can a dormant account be closed?

Yes, but you must reactivate it first before closing it permanently.

5. Can my account become dormant again?

Yes, if you don’t use your account again for an extended period of time , it may go dormant again.

6. Does a dormant account impact my CIBIL score?

No, a dormant account doesn’t affect your credit score, but unpaid penalties or overdrafts might.

7. Can I prevent my account from becoming dormant in the future?

Absolutely! Just make one transaction every few months, like a small deposit, withdrawal, or bill payment, to keep it active.

Is Your Bank Account Dormant? Here’s What You’re Losing Out On

What Happens When Your Bank Account Becomes Dormant?