How to Reactivate your Dormant Bank Account
You’d think that as long as you maintain your minimum balance in your savings account, it will continue to incur interest and remain accessible without you doing anything. I recently found out that this is not correct.
Pablo started earning at 11 years old when he unexpectedly snagged the role of Nigel in Atlantis Theatrical’s staging of Matilda. The checks weren’t really that big, but it was a good opportunity for him to start learning how to manage his earnings and how to save, after all, DOLE mandates we do not use the child’s earnings for spending, which was just fine with me as I believe that while a child is under a parent’s supervision, the responsibility of providing for the child falls on the parent. (I explained about DOLE a bit more extensively in another blog, The Working child and his savings account.)
After Kinky Boots Rerun, which was technically his second show but third contract, Pablo focused more on his studies and attending workshops, so we decided to give him a small weekly allowance for him to continue practicing his money management skills.
We also opened a Mutual Funds account for him and his brothers to teach them how small investments work, and because he only had small projects here and there after his stint with Kinky, we encouraged him to put all his savings in his MF account instead and left his bank account to itself.
(READ: School allowance and money management)
Recently, the kids received some checks from their voice acting gigs so I asked my husband, Jay, to withdraw them from my account and deposit them into their respective banks.
With Metrobank, it’s usually easy to do that as we can just go to whatever Metrobank is closest to us. That’s when we learned that Pablo’s bank account has been marked dormant, therefore, we couldn’t deposit his money without bringing him to the actual branch where he opened his savings account.
Pablo’s money in the bank is more than the minimum maintaining balance which we thought would be enough to keep it going, but we were wrong. According to the teller, an account that hasn’t had any activity from its owner for at least two years will be considered dormant.
This practice seems to be standard among banks, as a friend of mine who hasn’t touched her savings for a couple of years was also asked to do the process to have the account reactivated.
This wouldn’t have been so hard since the branch is within our location, except that there have been some restrictions put in place for minors because of the pandemic. Luckily, they have eased up a bit on 15 year olds and Pablo was able to enter his bank’s branch and reactivate his account.
How to reactivate your dormant savings account
The process is quite easy. All you have to do is appear at your branch in person, bring a valid ID (Pablo brought his passport), and deposit money into your account.
Simple.
But why do these banks do this?
Why banks mark your savings account dormant
Basically, your account has been marked dormant because it’s been inactive, meaning, you have not been depositing, withdrawing, transferring or using the money in your account at all.
And because it’s been inactive, employees of the bank are required to keep an eye on any possible fraudulent or suspicious activity on the account.
The bank also stops deducting fees and penalties from your account, nor will your account incur interests until you have reactivated it.
Sounds just okay, yeah? Well, yeah, your account is secure to a certain degree, but this brings about some problems, too.
The hassles that come with a savings account gone dormant
If your account has been marked dormant, you cannot be issued a fresh cheque book, you can’t apply for a debit card nor can you use the last one you’ve been issued, you cannot access internet banking, you cannot withdraw from your ATM, and as in our case, you cannot even deposit money into it from a different branch.
It can be a bit of a hassle because you’ll never know when you’re going to need it and WHERE you’re going to need it.
For example, what if you have a dire need to access your account from another location?
So, much as it seems fine to leave your account dormant for a while, it can also bring you a wave of trouble when you need to access it, so it is best to avoid getting into this situation.
Besides, what’s the point of keeping money in a bank if it will not generate interest? You might as well put it in your piggy bank. Think about it.
If you intend not to touch your savings in an account, look into time deposit, or better yet, the bank’s mutual funds program where your money can grow.
But if it’s somewhat intended as an emergency fund, you will have to comply and deposit in it at least once a year. This way, in times of emergency, you can always access your savings without any problem.
22 Comments
Pinaynursemeetsworld
I am also planning to open a savings account for y daugther in the future.. she’s only 5 years old but I am investing by buying stocks so I can give it to her someday..nice thing that you already trained them to save money at an early age.
Karla Nina Mallannao
I get it now. This is what exactly happened to my mom’s savings account years ago. I’m not quite sure how it turned out. But are the process the same for all banks? If I remember, BDO yung sa mama ko.
May De Jesus-Palacpac
Yes, it’s standard practice in all banks.
Jessa F Acala
Super inspiring tong blog na to about money management sa mga bata. I intend to also practice this kay summer. It’s something I was never taught as a kid which resulted in my unhealthy spending habits. This is very helpful lalo na sa mga parent na gaya ko.
clang clang
Thanks for this info. Ganito pala yung nangyari sa Bank account ng Tita ko, simula kasi ng nagpunta na siya US wala na transaction sa BPI niya kaya nung time na magdedeposit kami Dormant account na daw.
May De Jesus-Palacpac
Yes, she has to appear in person to reactivate her account. Then just deposit funds from time to time so it won’t go dormant.
Maria Teresa Figuerres
I didn’t know this. I’m definitely checking my other bank accounts that I haven’t been touching for a while now. Thanks for the info!
Christianforemost.com
Saving money is a good behavior to teach while still young and it’s so nice that your kids are already earning from their talents!
Rowena
Love what your teaching your kids. Hope I can do that to my little one as well. Btw, glad that I saw this article coz I had been thinking of a dormant account of mine and plans to make it active again for our emergency fund.
Sherile Guinto
Oh my! Buti nabasa ko to, kasi baka dormant account narin sa daughter ko. Kasi parang 2 yrs narin hindi nakakapag deposit. Hindi pa naman nachecheck online kasi pag Junior account need pupunta ka mismo sa branch. Thank you paasikaso ko kagad to.
May De Jesus-Palacpac
Exactly! Kami din, Junior accounts sila lahat, kaya hindi namin narealize na nadormant na pala.
Blair villanueva
I think this is bank’s way of securing each accounts. After all, the Philippines is one of the countries with tough banking law.
May De Jesus-Palacpac
Yes, and avoid fraudulent and illegal activities because of what happened a few years back.
Kristine Gavilano
Thank you for the information about this. My son has an account in BDO but it’s more than 2 years since we have any activity with that account. At least now I know pwede lang sya mareactivate, kaso he’s only 10 and I think hindi pa sya pwede makapasok sa bank now.
May De Jesus-Palacpac
Maybe you can call the bank and ask if there are other options, like bringing his birth certificate or ID, or for you to bring home a form for him to fill out, and just submit.
Mumshie Nica
We opened a bank account for Nathan too as early as 3 months old sya. It’s better to start saving early di ba and to teach them while they were young. I have an account na naging dormant din at di ko na nareactivate, I got my new account in that bank because of my new work. This is really helpful!
Owen ponce
This is precisely parents must prioritize
Mia Bunquin
Thank you so much! I just saw my PS bank account has gone dormant, my last transaction was 2 years ago. Buti na lang nakita ko to, nagpanic na ko kanina ?
Richele De Guzman Madrid
Ano pong ginawa nila noong nalaman nila na dormant at NASA Isa PO sila?
May De Jesus-Palacpac
You just have to reactivate the account. 🙂
Roy Maningo
I withdrew all the money in my ATM even the maintaining balance years ago. Can I still reactivate my account?
Alma M Rivera
I want to reactivate my atm account through online but i can no longer remember my username and password…also i am no longer using my registered number