Money
Managing your money
What happens to forgotten bank accounts?
You may have money in a bank or building society account that you have forgotten about. But not for long, if the Government has its way
Many of us do have these neglected funds, with some estimates putting the amount of forgotten money at hundreds of millions of pounds.
At present the banks have this money, and they use it and earn interest on it - some have even counted it as their own money in financial reports. So the Government has decided this money could be better employed. It is planning to make the banks and building societies have over money in dormant accounts to a fund which would use it for good causes.
An account will be considered dormant in future if there has been no activity on it for 15 years. The money will then be transferred by the bank or building society to a new Reclaim Fund. It will keep aside a small amount to meet any claims from the rightful owners - who will be able to get their money back without a time limit - and pass the rest on to good causes.
Before the scheme starts, perhaps in 2009, the banks and building societies will launch a 12-month appeal to get customers to reclaim dormant money.
Meanwhile, if your memory is jogged, you can get a free claim form from the British Bankers Association (0207 216 8909) or the Building Societies Association (0207 437 0655), or check their websites at www.bba.org.uk or www.bsa.org.uk
For money uhnclaimed from insurance companies and other institutions, try the Unclaimed Assets Register on 0870 241 1713 or uar.co.uk - but it does charge a fee of £18 for a search.
