Yes, banks can charge fees on dormant accounts, but what they charge and when varies by bank and account type

A dormant account is one with no deposits, withdrawals, or customer contact for a set period—usually 12 months, though some banks use 6 months or 24 months. Once an account hits that threshold, the bank can begin charging inactivity fees, also called dormancy fees. These are real charges that reduce your balance, and they continue monthly or quarterly until you reactivate the account or the balance reaches zero.

The amount matters. Some banks charge $5 to $10 per month. Others charge $25 to $50 per quarter. A few charge nothing at all. The fee structure depends entirely on the bank, the account type (checking versus savings), and sometimes your account history with them. There is no federal law that sets a maximum or prohibits the practice—banks are allowed to do this.

What stops the fees is activity: a deposit, a withdrawal, a transfer, or sometimes even a login to online banking. The moment you reactivate the account, most banks stop charging the inactivity fee going forward. Some banks will also waive fees you already paid if you reactivate within a certain window, though this is not standard.

Key Takeaways

  • Banks can charge monthly or quarterly inactivity fees once your account has had no activity for 6 to 24 months, depending on the bank's policy.
  • The fee amount varies widely—from nothing to $50 per quarter—and is set by each individual bank, not by federal regulation.
  • Any deposit, withdrawal, or transfer will stop future inactivity fees from being charged, though fees already deducted will not automatically return.
  • Savings accounts and money market accounts are more likely to have inactivity fees than checking accounts, though both can be charged.
  • Some banks will waive past inactivity fees if you reactivate within 30 to 90 days, but you must ask or check the bank's dormancy policy first.

How banks define dormancy and when fees start

Dormancy is not the same across all banks. Most define it as no customer-initiated activity for 12 consecutive months. Customer-initiated means you made the move—a withdrawal, deposit, or transfer you requested. Interest deposits or bank-generated transfers usually do not count as activity and do not reset the clock.

Some banks are stricter. Certain credit unions or regional banks may flag an account as dormant after 6 months of no activity. Others, particularly large national banks, may wait 24 months before charging anything. Your bank's specific policy is in the account agreement you signed when you opened it, though many people do not read this section.

Once the dormancy period ends, the bank does not always charge when ready. Some banks send a notice first, warning that fees will begin if you do not make a deposit or withdrawal within 30 days. Others begin charging without warning. The fee then recurs—usually monthly or quarterly—until the account is reactivated or the balance is depleted.

What types of accounts get charged and what the fees typically are

Savings accounts and money market accounts are the most common targets for inactivity fees. These accounts are designed to hold money, so a bank sees no activity as a sign the account is abandoned. Checking accounts are less frequently charged, because checking accounts are meant for regular use and a bank expects periodic activity.

The fee structure varies by institution. A typical scenario: a regional bank might charge $5 per month on a dormant savings account. A large national bank might charge $25 per quarter. Some online banks charge nothing—they use low overhead to avoid the fee entirely. Credit unions often have no inactivity fees at all, though this is not universal.

The fee is deducted from your balance. If you have $500 in the account and the bank charges $10 per month, after 50 months the account will be empty. Once the balance reaches zero, the bank typically closes the account and may report it to the state as unclaimed property.

How to stop inactivity fees from being charged

The simplest way to stop inactivity fees is to make any transaction before the dormancy period ends. A single deposit, withdrawal, or transfer resets the clock. You do not need to move large amounts—even a $1 transfer counts. Some banks also allow online login or a phone call to your account to count as activity, though this is less common and you should confirm with your bank first.

If you have already been charged, the next step is to contact the bank directly. Ask whether they will waive the fees you have already paid. Some banks have a grace period—typically 30 to 90 days after the first fee—during which they will reverse charges if you reactivate. Others will not. There is no law requiring them to, so the answer depends on the bank's policy and sometimes on how long you have been a customer.

If the bank refuses to waive fees and you believe the charges are unfair, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) or your state's banking regulator. This does not may provide a refund, but it creates a record and may prompt the bank to reconsider, especially if multiple complaints are filed.

The difference between inactivity fees and escheatment

Inactivity fees are separate from escheatment, which is the process by which a bank turns over unclaimed property to the state. Escheatment typically happens after 3 to 5 years of no activity and no contact from the account holder. At that point, the bank transfers the remaining balance to the state's unclaimed property program.

Inactivity fees can drain your account before escheatment happens. If fees reduce your balance to zero, the account closes and may never reach the state unclaimed property system. This is why it matters to reactivate an account or at least make contact with the bank before fees deplete the balance entirely.

You can recover unclaimed property through your state's treasurer office or the National Association of Unclaimed Property Administrators (NAUPA) website, but this process takes time and requires proof of ownership. It is far simpler to prevent the account from reaching that point by making a single transaction before the dormancy period ends.

What to do if you find an old dormant account with fees already charged

If you discover an old account that has been dormant and has been charged fees, start by contacting the bank. Provide your account number and ask for a statement showing all inactivity fees charged. Request that they waive the fees, explaining that you were not aware of the dormancy policy or the charges.

Some banks will reverse a few months of fees as a courtesy, especially if you have been a long-term customer or if the account still has a balance. Others will refuse. If they refuse and the total amount is significant, you can dispute the charges through your state's banking regulator or file a complaint with the CFPB.

Once fees are addressed, make a transaction to reactivate the account. This stops future fees from being charged. If you do not plan to use the account, consider closing it formally rather than leaving it dormant again. A closed account cannot be charged fees, and you avoid the risk of escheatment.

How to find out your bank's specific dormancy policy

Your bank's dormancy policy is in the account agreement or fee schedule you received when you opened the account. If you no longer have the document, you can request it from the bank or find it on their website. Look for sections titled "Dormancy," "Inactivity," "Inactive Account Fee," or "Unclaimed Property."

The policy should state: the number of months of inactivity that trigger dormancy status, the amount of the fee, how often it is charged, what counts as activity to reset the clock, and whether the bank will waive fees under any circumstances. If the policy is unclear, call the bank's customer service line and ask directly. Get the answer in writing if possible.

If you are considering opening a new account and want to avoid inactivity fees, ask the bank about their dormancy policy before you sign up. Online banks and credit unions often have no inactivity fees, which can be a deciding factor if you think you might not use the account regularly.

Frequently Asked Questions

Can a bank charge a fee if I have not used my account in 6 months?

It depends on the bank's policy. Most banks define dormancy as 12 months of no activity, but some use 6 months or 24 months. Check your account agreement or contact your bank to find out their specific threshold. If your bank uses a 6-month period, yes, they can charge a fee after that point.

Will the bank notify me before charging an inactivity fee?

Some banks send a notice before charging, but many do not. The account agreement typically states the bank's notification policy, though it often says they are not required to notify you. It is your responsibility to know the policy and keep the account active if you want to avoid fees.

If I make one deposit, will all the inactivity fees stop?

One deposit will stop future inactivity fees from being charged. However, fees you have already been charged will not automatically be refunded. You must contact the bank and request a waiver. Some banks will reverse a few months of fees if you reactivate within a grace period, but this is not may provide.

What happens to my money if inactivity fees drain my account to zero?

Once the balance reaches zero, the bank typically closes the account. The remaining balance may be reported to your state as unclaimed property after 3 to 5 years of inactivity. You can recover it through your state's treasurer office, but this process takes time and requires proof of ownership.

Can I dispute inactivity fees with my bank or a regulator?

Yes. You can ask your bank to waive the fees, and if they refuse, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) or your state's banking regulator. This does not may provide a refund, but it creates a record and may prompt the bank to reconsider, especially if the charges seem unreasonable or the policy was not clearly disclosed.