Do YOU have a Dormant Account?
Scottish Building Society wants any savers who may have lost touch with their accounts to contact us - we want to put you in touch with monies you may have forgotten about. What a pleasant surprise to find you have built up a nest egg over the years without realising it!
What is a Dormant Account?
The Dormant Bank & Building Societies Accounts Act 2008 defines a 'dormant account' as one where there has been no "customer-initiated" transaction on the account for 15 years or more.
That means that any account will be included where there has been no receipts or withdrawals and the customer has not been in touch with the Society for any other reason.
The fact that the Society has been issuing statements, or paying monthly or annual interest to a bank account, doesn't count as "customer-initiated"; to enable the account to be excluded from the scheme, the transaction must involve the customer contacting the Society - not the other way round.
What will happen to funds from Dormant Accounts?
The Society is investigating how many accounts will fall within the Act definition and therefore how much money will be available for transfer to charitable causes when the scheme comes into operation later this year.
The Act says that a proportion of the funds identified must be placed in a 'reclaim fund' to cover instances where customers later re-establish contact. What's left can then be passed to an 'arm's length body' to distribute to good causes on behalf of the Society. We are still considering what body to use, but our priority will be to make sure that the funds are used in Scotland to support worthwhile charitable causes - preferably smaller charities who do not necessarily have the high profile that large national charities do.
For further information, please contact your nearest branch.