DORMANT ACCOUNT Meaning and
Definition
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A dormant account refers to a financial account that has become inactive or has had no recent transactional activity. It is typically associated with bank accounts, credit cards, brokerage accounts, or other types of financial instruments. In most cases, an account is considered dormant if there have been no customer-initiated transactions within a specific period, typically determined by the financial institution's policy.
When an account becomes dormant, it does not mean that it ceases to exist or is closed. Instead, it means that the account is inactive, no longer used or accessed by the account holder. The exact time frame for an account to become dormant varies based on the institution's guidelines, but it can range from six months to a couple of years.
Generally, dormant accounts have limited functionality and restrictions imposed by the financial institution. Some common limitations on dormant accounts may include an inability to make withdrawals, deposits, or payments. While dormant, the account holder may not receive any account statements or interest payments. However, dormant accounts still retain their balances and ownership rights, and the account holder can reactivate them by contacting the financial institution, usually by providing identification and completing the necessary procedures.
It is critical for users to regularly review and monitor their accounts to prevent them from becoming dormant, as dormant accounts may attract additional fees or penalties. Additionally, financial institutions often have legal obligations to locate and reach out to dormant account holders, which may include contacting them through mail or issuing public notices.
Common Misspellings for DORMANT ACCOUNT
- sormant account
- xormant account
- cormant account
- formant account
- rormant account
- eormant account
- dirmant account
- dkrmant account
- dlrmant account
- dprmant account
- d0rmant account
- d9rmant account
- doemant account
- dodmant account
- dofmant account
- dotmant account
- do5mant account
- do4mant account
- dornant account
Etymology of DORMANT ACCOUNT
The word "dormant" originated from the French word "dormant" which means "sleeping" or "inactive". It derives from the Latin word "dormire" which means "to sleep". The term "account" has its roots in the Latin word "computare" which means "to calculate". Therefore, the etymology of the phrase "dormant account" can be traced back to the concept of an "inactive" or "sleeping" financial account that is not actively being used or having any transactions.
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