what is a dormant account 
a dormant account is a customer s account at a bank or other financial institution that has seen no activity with the possible exception of interest deposits for a long period of time the owner may have forgotten about the account moved out of town without leaving a forwarding address or died a dormant account with a very small balance may simply evaporate reaching a zero balance due to monthly bank fees that exceed any interest paid if not the balance is turned over to the state which will return it to the rightful owner upon request financial institutions are required to transfer the money held in dormant accounts to the state s treasury after the accounts have been dormant for a certain period of time the amount of time varies by state 