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]

Core Points - U.S. banks have the legal right to close accounts without prior notice, which can happen for various reasons [1][3][4] - Prolonged inactivity is a common reason for account closure, with specific banks like Wells Fargo and JP Morgan Chase closing accounts after 16 and 18 months of inactivity, respectively [3] - Other reasons for account closure include excessive overdraft fees, low balances, and suspected fraud or suspicious activity [4] Consumer Protection Measures - Some states, such as New York, are proposing legislation that requires banks to notify customers before closing accounts and to return any remaining funds [5] - Consumers are advised to act quickly if they receive a closure notice or if their account is unexpectedly shut down, to resolve the issue and protect their financial standing [5][6] Recommended Actions - In the event of account closure, consumers should contact their bank immediately to understand the reasons for the closure and how to retrieve any remaining balances [6] - It is important for consumers to inquire about settling any outstanding amounts if they owe money [6]