Dormant Bank Accounts

Business, Legal & Accounting Glossary

Definition: Dormant Bank Accounts

Full Definition of Dormant Bank Accounts

When there is no activity in a bank account for a period of a year or more, and the bank can’t get in touch with the account holder, then the account will be made dormant.

This means that no statements or other material will be sent out to the account holder’s last known address as a safeguard against identity theft.

Although the account will no longer be active, the bank will still keep track of any funds it contains and pay the interest due where appropriate.

The most common reasons for an account going dormant are that the customer moved home and didn’t inform the bank, forgetting about a small balance in an old account, or that the account holder has died.

It’s estimated that up to £5bn may be sitting unused in UK dormant accounts.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Dormant Bank Accounts. Payroll & Accounting Heaven Ltd. October 16, 2021
Chicago Manual of Style (CMS):
Dormant Bank Accounts. Payroll & Accounting Heaven Ltd. (accessed: October 16, 2021).
American Psychological Association (APA):
Dormant Bank Accounts. Retrieved October 16, 2021, from website:

Definition Sources

Definitions for Dormant Bank Accounts are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 15th February, 2020 | 1 Views.