Core Points - Banks have the authority to close accounts under certain circumstances, including inactivity, policy violations, excessive overdrafts, and suspicious activity [1][5][7][8] Group 1: Reasons for Account Closure - Accounts may be considered abandoned if there are no transactions for several years, leading to closure and transfer to the state's unclaimed property program [3] - Violating bank policies, such as using a personal account for business transactions, can result in account closure [5] - Frequent overdrafts or bounced checks may raise concerns about account management, prompting banks to close the account [7] - Accounts flagged for suspicious activity, such as unusual cash deposits or large withdrawals, may be closed as banks seek to avoid complicity in illegal activities [8][10] Group 2: Prevention Tips - To prevent account closure, customers should make occasional transactions to avoid inactivity [4] - Monitoring account activity closely and signing up for alerts can help maintain a positive balance and avoid unwanted closures [9][10] - Customers should inform their bank of any significant financial transactions in advance to prevent misunderstandings [10]
4 Reasons Your Bank Can Close Your Account
The Motley Fool·2026-01-01 22:30