What the Government can do to your money if you don’t touch it
Leaving your money and letting your bank account remain idle for a length of time exceeding six years is unwise as you might could risk losing it. Due recent changes in legislation, unaccounted lump sums may be reclaimed by ASIC in the event of prolonged inactivity in your bank account.
On 31st May 2013, ASIC started reclaiming bank accounts that had been inactive for at least 3 years. The changes were made to the laws relating to unclaimed money. The new legislation changed from the previous 7 year threshold to 3 years for dormant bank accounts.
You can easily ensure you keep it active and accounted for. Inform your bank and update your personal details as soon as you made some changes whether it’s your mailing or home address, contact phone number and email address. By keeping everything up to date, you won’t miss any notification or letters from the bank regarding the status of your account. Take at least a few dollars for deposit or withdrawal to avoid bank account dormancy.
More often than not, money that was left in an inactive bank account may also disappear completely due to charges, fees, and bank penalties. The only exemption with this new legislation is for the unclaimed money that is less than $500; any amount less than $500 cannot be sent to ASIC for reclaim.
By making a comparison, funds that have been reclaimed by ASIC will earn interest with a rate based on Consumer Price Index Inflation and the fact that it is tax exempt is a bonus. This makes the new legislation a great incentive for saving. Interest paid on inactive accounts came in effect last 1st July 2013.
Call 1300 307 155 and start saving today!
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