Why Is Bank of America Canceling Accounts? Avoid Deactivation

Published March 29, 2025 by Amelia
Finance & Economy
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Bank of America account cancellations have been a rising issue for most customers. Various users have discovered that their accounts are labeled as “abandoned” without warning and thus become deactivated. In an effort to explain what is going on, Bank of America has laid out the reasons why accounts get tagged in this manner and also given information on how to avoid it.

Why Is Bank of America Canceling Accounts?

Bank of America has about 69 million customers and provides basic financial services like checking and savings accounts, credit cards, and loans. But if an account is not used for a long time—usually three years or more—it can be marked as inactive or abandoned.

Banks must follow state escheatment regulations. If a bank determines that an account is abandoned, the money can be turned over to the state’s unclaimed property office. The account owner will no longer be able to access the funds using Bank of America and will need to reclaim them directly from the state.

Along with checking and savings accounts, other financial assets can also be affected. These include certificates of deposit (CDs), individual retirement accounts (IRAs), the contents of safe deposit boxes, and uncashed checks.

How to Prevent Your Account from Being Marked as Abandoned

To avoid Bank of America canceling accounts, customers should take proactive steps to ensure their accounts remain active.

Log in on a regular basis – Simply logging into your account on a regular basis is one of the easiest ways to avoid inactivity. You might not have a need to perform a transaction, but accessing your account through the Internet indicates activity.

Perform small transactions – The act of withdrawing or depositing a small sum from a savings or checking account can maintain activity. Automating bill payments or transfers will assure ongoing activity.

Have updated contact information – If the bank is unable to contact you since your address and phone number on file are stale, it has the potential to raise the probability of your account being escheated. Maintain your contact information current whenever a change occurs. 

Deposit cashed checks early – Cashier’s checks, as well as other financial vehicles, can likewise be escheated. Investing in checks in advance of when they expire bars them from abandoned status.

Allow digital notifications – Bank of America also has digital features that enable customers to create alerts for account movement. These alerts make it easier for people to know about their account status and respond accordingly. 

What to Do If Your Account Is Labeled Inactive

If you get a notice from Bank of America telling you that your account is vulnerable, you must act promptly. Complying with the guidelines given in the notice prevents your money from being deposited into the state account.

For existing accounts that have been escheated, customers may still be able to recover their funds by pursuing the state’s unclaimed property process. This typically consists of submitting evidence of identity and historical account information to the state to confirm the claim.

By remaining active with their finances, customers can prevent the inconvenience of Bank of America terminating accounts and maintain uninterrupted access to their funds.

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Amelia

Amelia, a content writer at tnj.com, specializes in business advice, finance, and marketing. She delivers insightful, actionable content to empower professionals and entrepreneurs.