Check Your Old Bank Accounts, Before The Government Do!
As unbelievable as it may sound, the government are putting in place a process whereby bank accounts which have not been “touched†for 15 years or more, will be transferred to a central fund and distributed to “worthwhile charitable causesâ€. This is the first time any such arrangement has ever been discussed, not to mention acted upon.
The Secretary to the Treasury, Ed Balls recently released a consultation paper which detailed plans to “reclaim†funds from bank accounts which have remained dormant for 15 years or more. While this may sound fairly odd, if you bear in mind that estimates put the funds in question at between £400 million and £1.5 billion, this may cast some light on the situation. Market observers also estimate that the funds in question could grow by up to £10 million per annum.
If you have opened a bank account for your children, or a family relative, or even have an account for your “rainy day†money - make sure that you register some activity on the account as soon as possible. Quite how the government can justify such a move is unclear, especially when you bear in mind the “orphan†insurance assets which have been the subject of much debate for years - with some being retained by the companies and some returned to other customers.
As and when the new legislation is approved (which seems highly likely) there will be a massive publicity campaign in which people will be alerted to the risk. In theory there will also be the opportunity to reclaim your money at a later date if it is transferred to the “reclaim fundâ€.
However, it would be sensible to act now where relevant and ensure that your funds do not fall into the category of a “dormant†account.
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