The growth of banks in Indonesia is quite rapid. You might have more than one bank account, such as one for receiving your salary, another for savings, emergency funds, or other needs. Each bank has its own advantages and disadvantages, especially in terms of products and services. One of the main services provided by banks is offering savings accounts for their customers.

The Function of Savings Accounts in Banks

Banks serve as a safe place to store money. Saving money in a bank allows you to earn interest on your savings. Although the interest on savings is relatively small compared to other investment instruments, consider the interest as a bonus.

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The Function of Bank Accounts in the Modern Era

In this modern era, convenience and speed are priorities, including in financial matters. Opening a bank account can now be done online. However, some conventional banks still require prospective customers to visit a branch office, which can be time-consuming and costly.

A bank account functions as a virtual wallet for storing money and conducting transactions. But what happens if the account is not used?

What is a Dormant Account?

According to data from the Deposit Insurance Corporation (LPS) in 2022, only 49% of adults in Indonesia have bank accounts. Among those, not all accounts are active. An account that is inactive for a certain period is called a dormant account. A dormant account is one that is not used for transactions for a certain period, and if it remains inactive for a long time, it could be deleted.

A dormant account can result in transaction restrictions. Each bank has different policies regarding dormant accounts, usually if there are no transactions for 6 months to 1 year. Banks may also charge administrative fees or penalties on inactive accounts.

Causes of Dormant Accounts

1. Transaction Errors

   • Errors in deposits or transfers can cause the account to be temporarily blocked to prevent misuse.

2. Suspicious Activity

   • Unusual or suspicious activities, such as unauthorized access or fraudulent transactions, can cause the account to be automatically blocked to protect the funds.

3. Zero Account Balance

   • Accounts with zero balance that do not conduct transactions for a long time can become inactive due to monthly administrative fees.

4. Request from Authorities

   • Accounts reported to authorities due to alleged violations can be frozen by the bank.

5. Customer Death

   • Accounts belonging to deceased customers are blocked to prevent unauthorized access and can only be accessed by legal heirs.

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How to Reactivate a Dormant Account

Each bank has different protocols for reactivating dormant accounts. The simplest approach is to initiate a transaction through a teller or ATM. However, some banks may require customers to visit a branch office.

To find out the terms and conditions for reactivating a dormant account, it is best to contact the respective bank.
 

Preventing Dormant Accounts

It's better to prevent than to cure. Regularly conduct transactions in the neobank app to keep your account active.

Download the neobank app on PlayStore and App Store and open a saving account with neobank now!
 

PT Bank Neo Commerce Tbk is licensed and supervised by the Financial Services Authority (OJK) and is a participant bank in the Deposit Insurance Corporation (LPS).