Inactive Account Law and Legal Definition
An inactive account is a saving account without any activity. In an inactive account, no transaction will occur for a specified or significant period of time. There should not be any deposit or withdrawal in an inactive account during the dormant period. An inactive account is also known as a dormant account. However, there will be posting of interest. For an inactive account, the statute of limitation is not applicable. The account can be claimed at any time. When an account holder dies, a bank account remains inactive for a certain number of years. When the efforts to contact the account holder prove fruitless, the reversion of a property or money is transferred to the State. When the amount in the account is part of the estate of the deceased, beneficiaries can redeem the amount.
