What is a 'dormant account'???

Beenie

I have a savings account that's been open a couple of years. I don't expect to need to withdraw from it for the next 10 years.

What worries me is if there is no activity, will the bank class it as dormant? Making deposits or withdrawals is a bit inconvenient for me but I don't want my savings to be donated to the Treasury either

colsten

Different accounts will have different dormancy rules - refer to the T&Cs. If you log into your accounts now and then, they shouldn't go dormant. It will be a lot longer than 10 years before you need to worry about not getting to your funds (assuming the bank survives for that long).

More here: http://www.mylostaccount.org.uk/

The mind boogles very seriously, though: why would you leave any money for any length of time in a savings account when interest rates in those accounts are rock bottom? Why don't you invest your money?

jonesMUFCforever

They will always be your savings - dormancy only means the account is blocked until such time as they are happy that you are, who you claim to be, when you decide you want the money.
As other posters have said leaving it untouched for 10 years will mean it will lose a lot in value due to inflation.

Paul_1977

I had an old passbook savings account with the Abbey, had remain untouched for over 20 years, I did not think they would still have records of it.

When I went in it took a while and a few bits of paperwork but they made it un-dormant and gave me the money.

stclair

Set up a standing order to pay £1 into it every six months/once a year to keep the account ticking over.

colsten

stclair wrote: »

Set up a standing order to pay £1 into it every six months/once a year to keep the account ticking over.

That might prevent dormancy (which in itself is nothing bad) but it won't do anything to keep the value of your money above inflation, never mind growing it.

agrinnall

Beenie wrote: »

I don't expect to need to withdraw from it for the next 10 years.

Then expect your savings to be worth a fair bit less when you do withdraw them than they are today. Even actively managing savings it's not easy to stay ahead of inflation, doing nothing guarantees that you won't.

Beenie

I am one of those people who don't like to take risks.

Banks and building societies have traditionally been safe, and so I accept the low rate of interest.

As long as I have other regular income, and don't actually need the cash, I'm happy to leave my savings in the bank for a few years.

I am comforted to know that the chancellor will not steal my paltry sum (I think G.Brown was the one to float this alarming idea several years ago), and thank you for your advice.

Archi_Bald

This approach isn't just "not taking risks" - it is positive destruction of wealth. Leaving your money in the same old account will guarantee your money will lose purchasing power.

With a tiny bit of effort, you can make 3-5 times or more in interest, and at least keep up with inflation.

agrinnall

Beenie wrote: »

I am one of those people who don't like to take risks.

Banks and building societies have traditionally been safe, and so I accept the low rate of interest.

As long as I have other regular income, and don't actually need the cash, I'm happy to leave my savings in the bank for a few years.

I am comforted to know that the chancellor will not steal my paltry sum (I think G.Brown was the one to float this alarming idea several years ago), and thank you for your advice.

I suppose we should really be thanking your for your attitude, it's people like you who put up with miserable rates that make the banks the money that they can then use to fund the higher rates that those of us who are prepared to make a small amount of effort enjoy (it takes me approximately 10 minutes a month to move money between accounts).

xylophone

Banks and building societies have traditionally been safe, and so I accept the low rate of interest.

Then use the banks to increase your interest!
https://forums.moneysavingexpert.com/discussion/comment/67672481#Comment_67672481