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the difference between INACTIVE AND DORMANT ACCOUNT If you have a current or a savings bank account and have not done any transactions through it for more than 12 months, then it will be classified as an inactive account. And if you don’t do any transactions from a bank account for 24 months
Both dorman and inactive accounts can be understood as silimar from point of view of a common man. In technical terms , the dorman accunts which are not operated for short period and inactive means for a longer period
Dorman accounts are closed bank accounts for an entity whereas inactive accounts are the ones in which there are no transcations during the fiscal year
It's really up to each financial institution to define those terms for themselves, while making sure that they follow each state's escheat laws.
In general,
Inactive account - classified when you don't do any transactions for more that 12 month.
Dormant account- classified when you don't do any transactions for 24 month.
If you have a current or a savings bank account and have not done any transactions through it for more than 12 months, then it will be classified as an inactive account.
And if you don’t do any transactions from a bank account for 24 months, then it will be classified as dormant.
In banking parlance, in case of saving account, an account is dormant if it is not operated for a period of 1 year and will become inoperative if it is not operated for 2 years (inclusive of 1 dormant year). In case of current account, it is 6 month + 6 months
Inactive account means an account had not been in use for along time and not going to be used in the future.Dormantaccounts are those which are presently not in use but it islikely that it may be used in the near future
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