The best gifts are often the unexpected ones — the “it came out of nowhere and I can’t believe it” surprises that can make our day better and, sometimes, even make our bank account better.
Each year, thousands of people receive these unexpected gifts when they learn they have unclaimed property. Unclaimed or “abandoned” property refers to property or accounts within financial institutions or companies—in which there has been no activity generated (or contact with the owner) regarding the property for one year or a longer period, according to the National Association of Unclaimed Property Administrators.
Unclaimed property can be intangible, which is the most common (ex. uncashed paychecks, stocks), or tangible (ex. safe deposit box contents). After a designated period of time (called the dormancy period) with no activity or contact, the property becomes “unclaimed” and—by law—must be turned over to the state.
Why Do Bank Accounts Become Unclaimed?
Bank accounts – especially Certificates of Deposit (CDs) — become unclaimed for several reasons. One of the main culprits is the long-term nature of CDs. When you open a CD, you agree to leave your money in the account for a set period, often several years. During this time, it’s easy to forget about the account, especially if you don’t bank with that institution regularly or pay close attention to emails or snail-mail reminders.
Another reason is financial institution mergers and acquisitions. If your bank is acquired by another institution, you might not be aware of the changes, especially if you only have a CD with them. Over time, you might forget about the CD altogether. Additionally, if you inherit a CD from a relative and are not promptly notified, it can easily slip through the cracks.
What Happens to Forgotten CDs?
When a CD matures and the bank or credit union doesn’t hear from you, they typically roll the balance into a new CD with the same term. This automatic renewal can continue for years without your knowledge. Eventually, if the bank cannot contact you, the account is considered abandoned and is turned over to the state through a process called escheatment. Each state has different laws regarding escheatment, but generally, the state will hold the funds for a period, giving you a chance to claim them before they take full ownership
How to Check for Unclaimed Property
If you think there might be a CD out there with your name on it or you might have other unclaimed property, there are several ways to check. Start by visiting your state’s unclaimed property website. Most states have online databases where you can search for unclaimed property using your name. You can find those website addresses at the National Association of Unclaimed Property Administrators. Websites like MissingMoney.com also allow you to search multiple states at once.
Additionally, you can check with the Federal Deposit Insurance Corporation (FDIC) if your bank no longer exists. The FDIC helps manage accounts from failed banks and can assist in tracking down your CD. If you find unclaimed property, you can usually file a claim online. Be prepared to provide proof of identity and any relevant account information.
Conclusion
Forgetting about a CD or any bank account is easier than you might think, especially with long-term investments. However, reclaiming your unclaimed property is straightforward if you know where to look. Regularly check unclaimed property databases and keep your contact information up to date with your financial institutions to avoid losing track of your assets. By staying vigilant, you can ensure that your hard-earned money doesn’t slip away unnoticed.
