Why Financial Institutions Hold Unclaimed Funds
Across the U.S., banks and financial institutions are holding billions of dollars in unclaimed funds — often due to account inactivity, undelivered checks, or forgotten balances. But why do these funds remain untouched, and how can you get them back?
What Are Unclaimed Funds?
Unclaimed funds refer to money that belongs to individuals or businesses but has not been claimed for a certain period of time. These include dormant bank accounts, uncashed checks, closed credit accounts, or unredeemed insurance payouts.
Why Institutions Keep Them
When customers move, forget an old account, or pass away, the bank may be unable to reach them. Instead of automatically returning the money, these funds are marked as dormant. Institutions are legally required to hold them for a while, before turning them over to the state.
How to Check If You’re Owed
You can search for unclaimed property on your state’s official unclaimed funds website. Or, use services like Finance Incorporate to handle the process securely and efficiently on your behalf.
How Long Are Funds Held?
Most institutions are required to report unclaimed money after 1–5 years of inactivity. Once reported, these funds are transferred to state treasuries, where they remain until claimed by the rightful owner.