Bank of America Account Cancellations: What You Need to Know [2025 Update]
Bank of America has recently issued warnings about closing inactive customer accounts to comply with state **escheatment laws**. Here’s a breakdown of the policy, affected accounts, and steps to protect your funds.
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**Why are Bank of America's accounts being closed? **
The bank is required by law to transfer funds from inactive accounts to state custody under **escheatment regulations**, which govern abandoned or unclaimed property. Accounts are flagged as "abandoned" after **3 years of inactivity** (no logins, transactions, or balance checks) . States then hold these funds until the owner reclaims them through a formal process .
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## **Which Accounts Are at Risk? **
The policy applies to a wide range of financial products:
- **Checking and savings accounts**
- **IRAs and Certificates of Deposit (CDs)**
- **Safe deposit boxes**
- **Uncashed cashier’s checks**
- **Stocks, bonds, and mutual funds** .
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## [Steps to Avoid Account Closure] 1. **Regular Activity**: Every month, log in to your online or mobile banking to check your balance or make a few small transactions. 2. **Update Personal Information**: Ensure your address, phone number, and email are current with the bank.
3. **Use Digital Tools**: Enable account alerts for balance updates or inactivity warnings.
4. **Cash Checks Promptly**: Negotiate checks or financial documents before they expire.
5. **Respond to Notices**: If you receive an escheatment letter, follow the instructions immediately to reactivate your account.
Failure to act may result in funds being transferred to your state’s unclaimed property division. For example, Pennsylvania requires banks to report dormant assets after 3–5 years .
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## **What If Your Account Is Already Closed? **
If your account is escheated:
1. **Contact Your State**: Search your state’s unclaimed property database (e.g., California’s [Controller’s Office](https://sco.ca.gov/)).
2. **Provide Documentation**: Submit proof of identity and ownership (e.g., ID, account statements) .
3. **Reclaim Funds**: Follow state-specific procedures to retrieve your money.
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## **Bank of America’s Recommendations**
The bank emphasizes digital engagement, especially as it closes physical branches nationwide. CEO Brian Moynihan has highlighted the importance of online tools for monitoring accounts . Customers can call **1-800-432-1000** for assistance .
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### Important Takeaway Inactivity triggers account closures, but proactive steps can safeguard your assets. To avoid disruptions, regularly interact with your accounts and remain informed about state-specific escheatment laws. For more details, visit [Bank of America’s FAQ page](https://www.bankofamerica.com/help/escheatment-faqs/) .
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