BOG educates the public on dormant accounts

The Bank of Ghana (BOG) has continued its financial literacy education as it schools the public on dormant accounts. In its latest 8TH INFOGRAPHICS SERIES SLIDES, the BOG informs that an account becomes dormant after two years of inactivity. This means that for two whole years, the holder of such an account has neither deposited nor withdrawn money from it. As such, the Bank of Ghana has urged people whose accounts have been idle for some time now to reactivate them.

Besides, many may wonder why they have not earned any interest for quite some time now. Well, one of the reasons may be that the bank has declared such an account dormant. The Bank of Ghana highlights that customers who allow their accounts to go dormant will not earn any interest on them. However, the BOG notes that in the same vein, financial institutions will not levy any charge on such dormant accounts.

Updating contact details

Also, the Bank of Ghana advises customers to ensure that their contact details with their banks are always up to date. This, according to the BOG, makes it easier for the banks to contact the account holder in case an account becomes dormant.

Moreover, financial institutions require prospective account holders to provide a “Next of Kin”. In simple terms, this is the successor to the account. The BOG teaches that such a person plays a significant role in the absence of the account holder. That is, if a financial institution’s efforts to contact the account holder profs futile. In such cases, the financial institution will contact the “Next of Kin”, even though the account holder may still be alive. As a result, the Bank of Ghana urges all account holders to ensure that the contact details of their Next of Kin are always the latest.

Addressing the issue of dormant accounts

Meanwhile, allowing your account to go dormant does not mean that you will have to forfeit it or create a new account. All you need to do is to contact any branch of your financial institution to reactivate your dormant account. More importantly, the Bank of Ghana notes that reactivating a dormant account remains free in Ghana. However, the BOG emphasizes that a customer cannot withdraw from a dormant account.

“Remember, you will not be allowed to withdraw from your account if it is dormant. Get your account reactivated!”
Bank of Ghana

A dormant account after 5 years

Furthermore, the BOG discloses that the law permits financial institutions to publish accounts that remained dormant for more than five. It notes that banks will publish such accountsin the daily newspapers. Failure to reactivate a dormant account after the publication, gives the financial institution the right to transfer the funds to the Bank of Ghana. According to the BOG, this will help ensure the “continuous protection” of such funds.

In a nutshell, the Bank of Ghana is calling on all account holders to ensure that their accounts remain active. Customers can do this through frequent deposits or withdrawals and also by updating their contact details.