5 Reasons the Bank of America Could Close Funded Accounts


Did you recently try to login to your Bank of America app only to find that you had no access to your account?

After the panic subsided and you called your bank, did you find that your account with money in it had been closed?

If you have an account with Bank of America with money in it that has been closed, first make sure you receive your full refund. Your account may have been closed due to a rule violation, a period of inactivity, bounced checks, or fraud protection.

Let’s take a look at some of these more closely. 

Here are 5 Reasons the Bank of America Could Close Funded Accounts

1. Inactivity

If you rarely use an account, Bank of America may close it. If you’re looking for a specific timeline on this, there really is no hard and fast rule. Typically, Bank of America will close your account after a period of inactivity lasting 2-3 years.

However, this time period may be shorter or longer. The key to preventing your account from being closed due to inactivity is simple: Use it! Make a deposit, write a check, or use your debit card at least every few months.

Simply logging into your online account may also trigger enough activity to prevent Bank of America from closing your account. Keep the bank’s URL pinned to your computer or put the app in your home screen of your phone.

The bank will try to avoid closing your account first and may use it as an option to collect inactivity fees. However, if your account becomes too expensive for the bank to keep it open, they’ll just close it. Remember, the bank has to spend money to keep your account open, including:

  • Providing Accounting
  • Mailing Statements
  • Providing Online Security
  • Storing Data

Keep your contact information updated with the bank. Banks are pretty good about contacting customers to inform them of an impending account closure. Chances are you missed an email or a letter in the mail informing you that a closure was coming.

Remember, there’s a difference between an account that is closed and an account that has been removed from your online profile due to inactivity. So, if you can’t find your account online, call the bank before you assume it’s closed. The bank may have simply removed it from the online database prior to closing.

 If it is closed, you might receive a notice of abandoned property from the state, also known as “escheatment,” which means if you don’t claim the money, it will go to the state in which you reside for safekeeping.

2. Excessive Transactions

 Excessive transactions might fall under a “rule violation” category. When you sign the contact for your bank account, you’re signing your consent to the account’s terms and conditions. Each level of account has different perks and permissions based on the fees you pay.

If you’re paying for a basic account but making transactions more appropriate for a more expensive account, Bank of America might close it. While deposits and withdrawals probably won’t get you, excessive transfers might. Pay attention to the terms and conditions of your account and follow them so you can avoid an account closure due to excessive transactions.

Interestingly, Bank of America recently had some negative press over charging for excessive transactions, which you can read about here.

3. Fraud Protection

Perhaps the reason for the closing of your Bank of America account with money in it was for your benefit!

If your account information was included in a data breach or the account has otherwise been subjected to fraud, Bank of America may have closed the account to prevent further damage to your identity or financial security.

 As with any data breach of fraudulent activity, accounts may be closed or deleted to prevent further leaks or any other loss of security. Bank of America will attempt to contact you, so make sure your information is up to date, and respond to the bank’s inquiry quickly.

4. Bank Defaults

Did you bounce more than one check? Or did you deposit a bad check?

Although it can happen to anyone, a series of defaulted or bad checks could result in Bank of America closing your account with money in it.

Bouncing a check means your bank refused to honor the payment made by check due to the lack of sufficient funds to cover the check. In addition, the bank will charge the funds back to the customer with overdraft fees (aka Non-Sufficient Funds or NSF fees). To be completely honest, It’s a bit of a hassle for all involved.

If you bounce several checks or have a run of bad deposited checks, the bank will likely restrict or close your account. Again, keep your contact information updated because the bank will send you a notice of any defaulted checks and any charges associated with them.

5. Violations of Bank Rules or the Terms and Conditions

Other reasons for Bank of America closing an account with money on it could include violations of bank rules or the terms and conditions of the contract you signed.

A bank is in the business of making and investing money, so any measures that can be taken to avoid unnecessary risk, such as closing an account with money in it, might be taken.

Conclusion

 While it may be surprising, it is true that Bank of America does close accounts with money in them. The reasons listed here aren’t exhaustive but are certainly some of the high points as to why you may have had your Bank of America account closed

If you want to keep your Bank of America account open, remember to use it by making deposits, taking out withdrawals in the form of using your debit card or writing checks, and keep your contact information updated.

And remember, if your account has been closed, contact the bank and ask about a full refund of any funds that were in the account when Bank of America closed it with money still in it!

Thanks for reading folks!

Geek, out.

Noel Moffatt

Noel Moffatt is the founder and main contributor for his blog - The Financial Geek. Based in Canada, Noel's passion for personal finance has helped him amass over 300k readers to his Financial Geek blog.

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