Why to Avoid Dormant Savings Accounts in Las Vegas
Savings accounts are meant to be a place for people to deposit funds they don’t need in the immediate future. Over time, the accounts collect interest -- and the money in them can easily be withdrawn whenever needed. It’s important to not forget about these accounts, though, or else you may lose the interest and convenience that savings accounts in Las Vegas provide.
Unused Savings Accounts Become Dormant
A savings account that is unused for a long period of time, meaning no deposits or withdrawals are made to or from it for several years, will become dormant. In order for a financial institution to deem an account dormant, the account must meet all of Nevada’s requirements regarding unclaimed property. Navigating the laws can be complex, depending on the circumstances surrounding a savings account. In general, savings accounts that haven’t had any activity for three years can be considered dormant.
Dormant Accounts Are Handed Over to the Nevada Treasury
Once accounts are deemed dormant, they can be handed over to the Nevada State Treasurer as unclaimed property. Transferring accounts to the state treasurer lets financial institutions clear the accounts from their books, so they don’t have to keep details on the accounts’ activities and send out statements for the accounts.
Although chronicling activity for one unused account and sending out a periodic statement about it might not cost much, the expense associated with multiple accounts adds up fast. An institution that offers savings accounts in Las Vegas may have thousands of dormant accounts. In order to keep administrative costs low, the accounts must be transferred to a state-run agency.
When transferring an account to the state treasury as unclaimed property, a financial institution must attempt to notify the account holder. Often, however, the contact information attached to an unused account isn’t up to date, and the notification never reaches the account holder.
Unclaimed Property Doesn’t Get Interest and Isn’t Easy to Access
Once with the Nevada State Treasurer, dormant savings accounts considered unclaimed property no longer have the benefits savings accounts do. The money in the accounts isn’t lost, but it doesn’t gain interest anymore. Additionally, to access it, the owner of the unclaimed property must submit a formal request and prove their identity. The process of accessing the funds can take weeks or months -- much longer than visiting a credit union branch and making a withdrawal.
Open a Savings Account with Clark County Credit Union
If you’d like to open a savings account in Las Vegas, let Clark County Credit Union help you. We can help you open an account and set up automatic deposits so it doesn’t become dormant. To learn more about the savings accounts we offer, contact CCCU at 702-228-2228.