For a long time, Wells Fargo has had the authority to terminate bank accounts that have not been used for a long time.
Although this policy is not new, it has received greater attention recently as more clients realize that if they do nothing, their money may be turned over to the state.
Wells Fargo designates accounts as inactive if there is no customer-initiated activity for a predetermined period of time, usually 16 consecutive months or more, in accordance with state unclaimed property rules.
An account may be terminated and the money transferred to the proper governmental agency after it satisfies the requirements for inactivity.
This isn’t merely a warning; according to US banking regulations, it’s a normal practice that applies to any account that hasn’t been used for a long period of time.
Your account might already be in danger if you haven’t used it before 2023.
Why is an Account Supposed to Be Inactive?
When there are no deposits, withdrawals, payments, or other customer-initiated transactions for a predetermined amount of time, Wells Fargo considers an account to be inactive.
Crucially, bank-deducted fees or automatic charges are not considered legitimate activity.
Wells Fargo may start the procedure to cancel the account and escheat the funds—that is, turn them over to the state government as unclaimed property—once the inactivity level is met.
Depending on the state’s escheatment rules, recovering that money may be difficult and time-consuming.
Official documents such as Wells Fargo’s Private Bank Disclosures (PDF), which discuss how accounts are tracked and how escheatment is managed, contain a copy of this policy.
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How to Protect Your Account?
Showing that your account is active is a rather easy way to avoid this. The inactivity timer can be reset by any customer-driven action, such as logging onto your account, sending money, making a minor purchase, or making a small deposit.
You may prevent losing access to your money by taking a few minutes each few months to log in and start a transaction, even if you only use the account infrequently or preserve it for emergencies.
Although it’s not always necessary, Wells Fargo usually notifies impacted clients prior to closing an account. Proactive account management is therefore essential.
