Emma Tyrrell, Tuesday November 13, 2007
You could be richer than you think. There's a staggering £1.5bn lying unclaimed in so-called 'dormant accounts' - and it's never been easier to track down. Find out how to claim your share of our missing millions
Many of us have money sitting in lost or forgotten savings accounts - and the big banks are stepping up their efforts to help reunite consumers with their missing funds. Halifax last week announced plans to locate 25,000 holders of dormant accounts and regulatory bodies have launched a new free tracing survey - My Lost Account - for people with missing funds.
But how does this money go missing? In a number of ways - many people move house or change their name without informing their bank. Others may own long-forgotten childhood savings accounts or be entitled to an unknown inheritance. Another common scenario is that the account-holder dies without telling their heirs of its existence.
These missing millions are lying untouched in accounts which haven't seen a transaction or a balance check for over 15 years. The banks and building societies have up to £500m held in 'dead' accounts, while almost £1bn is lying in National Savings & Investments (NS&I) savings accounts, savings certificates and unclaimed premium bond prizes.
You might think that the amount of money in your account is just too small to bother with. Whatever the reason, if you think you might have money in a dormant account, it's a good time to make a claim - before the Government does.
Gordon Brown wants the money in the dormant bank and building society accounts - but not the funds held in NS&I accounts - to be paid into a central fund to support youth community projects and financial education. Under plans for this unclaimed assets scheme, any account which has had no contact from the account holder for 15 years or more will be classed as dormant.
Yet there's no need to panic. Even after the money is paid to the new Central Reclaim Fund (CRF), it still belongs to the account-holder or their heirs. So if you find an old passbook gathering dust at the back of a drawer, you'll still be able to access your cash even if the money has been transferred.
How accounts become dormant
Most banks and building societies class an account as dormant after three years of inactivity but this timeframe can vary. "Not using a current account for three years is quite different from not touching a savings account for that period, for example," says Paul Chisnall of the British Bankers Association (BBA).
Once an account is identified as 'inactive', your bank or building society will write at least once asking if you still want the account. If they get no response, it will then be labelled 'dormant'. Under the Government plans, once an account is dormant for 15 years, the money will be transferred to the central fund. Activity such as periodically looking at your balance online would be enough to keep your account active.
Find a better current account - fast
How do I track down an old account?
If you know which bank holds your old account, contact it directly. If the bank or building society that had your savings no longer exists, the British Bankers' Association (BBA) or Building Societies' Association (BSA) websites allow you to search the details of old institutions to see if they have been taken over. The BBA and BSA have also this month launched a free online tracing service - My Lost Account - which may be useful even if you don't know which bank held your dormant account.
NS&I offers a free tracing scheme for its accounts. It also has a prize checker on its site, with unclaimed Premium Bond prizes dating back more than half a century. NS&I accounts, pensions and investments do not fall into the Government's central fund scheme.
If you have any other assets you want to trace - such as shares, funds, pensions or life assurance policies - you can check Experian's Unclaimed Assets Register, for an £18 fee.
What if I'm too late?
If your money has already been transferred to the Central Reclaim Fund, you'll need to contact your bank or building society, which would top the account back up and then reclaim the money from the central fund. The CRF will maintain a reserve to cover such events.
"The banks will maintain customer records, so you will still be able to get your money back," says Paul Chisnall of the BBA. "But in the meantime, the transfer to the CRF means the money will be put to better use than sitting on the bank's balance sheet."
