How to Prevent Your US Bank Account from Being Closed Due to Inactivity

How to Avoid Having Your U.S. Bank Account Closed Due to Inactivity

In the context of global economic integration, an increasing number of individuals and businesses are choosing to open bank accounts in the United States for purposes such as investment, studying abroad, and cross-border trade. However, many users find that their accounts are unilaterally closed by the bank due to low usage or long periods of inactivity, resulting in difficulties in accessing funds or conducting follow-up transactions. Recently, several U.S. banks have strengthened their management of dormant accounts, drawing widespread attention. This article will explore effective ways to prevent your U.S. bank account from being closed due to prolonged inactivity, based on current news developments.

I. U.S. Banks' Policies on Dormant Accounts

According to regulations set by the Federal Reserve System and state financial regulators, banks have the right to clean up long-dormant accounts in order to reduce operational costs and compliance risks. Generally, if an account has no transaction records for a period of 6 to 12 months, the bank may classify it as dormant and take actions such as charging dormancy fees, restricting transaction privileges, or ultimately closing the account.

In September 2025, Bloomberg reported that major financial institutions such as JPMorgan Chase and Bank of America were enhancing their management of dormant accounts. Some banks have already started sending email and text notifications to clients, alerting them to insufficient account activity and reminding them to perform transactions to maintain account status.

II. Common Reasons for Dormant Account Closures

1. Lack of Transaction Records This is the primary criterion banks use to determine dormancy. Even if the account holds a balance, long periods without any transactions may lead the bank to consider it inactive.

2. Failure to Update Customer Information U.S. banks typically require customers to periodically update personal details such as address, contact information, and tax documentation. Failure to do so may result in account freezing or closure for compliance reasons.

3. Unpaid Maintenance or Dormancy Fees Some banks charge dormancy fees for inactive accounts. If the account balance is insufficient to cover these fees, the account may be closed.

4. Anti-Money Laundering AML and Know-Your-Customer KYC Requirements In recent years, U.S. financial regulators have intensified scrutiny on AML and KYC compliance. To mitigate regulatory risks, banks are more inclined to close long-dormant accounts.

III. How to Effectively Prevent Account Closure

1. Perform Regular Small Transactions

The most direct and effective method is to conduct small transactions regularly, such as transfers, deposits, or bill payments. Even a single small transaction per month can keep the account active. For example, you can set up automatic transfers into or out of the account for a small recurring subscription.

2. Monitor Bank Notifications and Email Alerts

Banks often send alerts before an account is flagged as dormant. Ensure that your registered email and phone number are accurate and check for bank notifications regularly. Upon receiving such alerts, take prompt action to reactivate the account.

3. Contact Bank Customer Service Proactively

For accounts that are not frequently used, reach out to customer service to explain the account’s intended use and inquire about available maintenance options. Some banks offer account retention or dormant account protection services to prevent closure.

4. Keep Personal Information Updated

Make sure that all personal details in the bank’s system-such as address, contact information, and tax documentation-are up to date. Update your records promptly through the bank’s website or customer service if any changes occur.

5. Maintain a Non-Zero Balance

Some banks may close accounts that remain empty for extended periods. It is advisable to maintain a small balance, even if the account is not actively used, to avoid it being considered dormant.

6. Choose the Right Account Type

Some banks offer accounts with no monthly fees or options designed for long-term retention. When opening an account, choose a type that suits your usage pattern to reduce the risk of closure due to fees or dormancy policies.

IV. Case Study Recent Trends in Dormant Account Closures

In early 2025, multiple media outlets reported that Citibank had begun closing personal accounts that had been inactive for more than a year. Affected clients included overseas investors and international students who had temporarily stopped using their accounts due to the pandemic or completion of studies. These account closures caused difficulties in transferring funds and sparked widespread discussion.

Citibank responded by stating that all actions were in line with regulatory requirements and that customers had been notified in advance via email and SMS. This highlights the importance of staying attentive to bank notifications and taking timely action to prevent account closure.

V. Conclusion

While opening a U.S. bank account is convenient, maintaining its active status is equally important. In the current environment of increasingly strict management of dormant accounts, users should proactively understand relevant policies and take practical steps to avoid the inconvenience caused by account closures. Whether it's performing regular transactions, updating personal information, or communicating with the bank, these actions are key to ensuring account security and continuous usability.