That old savings account you opened for a promotion five years ago and haven’t touched since probably sits somewhere in a bank’s system, quietly collecting dust alongside thousands of other forgotten accounts. Eventually, banks will classify these inactive accounts as “dormant” and restrict access to protect the funds, but your money never actually disappears.

When Banks Classify Accounts As Dormant

Malaysian banks typically mark an account as dormant after 12 months without any transactions, counting from your last deposit, withdrawal, or transfer that you initiated. Automatic transactions usually don’t reset the clock, so an account that only receives automated credit card payments or has standing instructions running can still become dormant even with regular activity showing up on statements.

The 12-month standard applies across most Malaysian financial institutions, though notification practices vary. Some banks send letters to your registered address before restricting access, while others may not notify you at all. People often discover dormant accounts by accident when an old ATM card suddenly stops working or when they try to log into online banking and find themselves locked out.

What Happens To The Money

Your money isn’t going anywhere. Malaysian banking regulations protect dormant account balances, so that RM3,000 you forgot about is still yours even if it’s been sitting untouched for six years. The account gets locked down to prevent unauthorised access while you’re not monitoring it. You can’t withdraw cash, make transfers, or use your ATM card, and online banking access gets disabled.

Interest continues accruing on savings accounts, but banks also start deducting fees. For accounts with balances over RM10, most Malaysian banks charge an annual service fee of RM10 during dormancy, deducting it from your balance each year. If your account balance is RM10 or less when it becomes dormant, banks typically close the account entirely and absorb the remaining balance as a service charge.

After seven years of dormancy, banks must transfer unclaimed balances to the Registrar of Unclaimed Money under the Accountant General’s Department, as required by the Unclaimed Moneys Act 1965. The funds don’t become government property. They’re held in trust for you to claim whenever you’re ready, though the retrieval process shifts from a simple bank visit to filing a claim with the government registry. There’s no time limit for claiming your money back from the Registrar, so don’t panic if you only discover the funds years later.

How Different Account Types Handle Dormancy

Savings And Current Accounts

Account Type	Becomes Dormant After	Transferred To Registrar
Savings Account	12 months of no activity	After 7 years dormant
Current Account	12 months of no activity	After 7 years dormant

After seven years of dormancy, the balance is transferred to the Registrar of Unclaimed Moneys.

Fixed Deposits With Automatic Renewal

Fixed deposits don’t become dormant in the usual way. Automatic renewals don’t count as customer-initiated activity.

The seven-year countdown starts from:

• your original deposit date, or
  
• the last time you actively gave instructions to the bank, whichever is later.
  

This is why a fixed deposit can still become unclaimed money even if it appears “active” on paper.

Reactivating A Dormant Account

Most Malaysian banks require you to visit a branch in person with your identity card to reactivate a dormant account. Bringing your old passbook or ATM card helps if you still have them, though they’re not always necessary for verification. The bank verifies your identity, updates your contact information, and may ask you to confirm your current address or provide a new signature for accounts that have been dormant for several years.

The process typically completes the same day. Banks cannot charge reactivation fees under Bank Negara’s Basic Banking Services policy. You’ll need to arrange for a new ATM card, which the bank will either issue immediately, mail to your address, or hold for collection.

If you can’t remember which bank holds your old account, the eGumis portal lets you search the Unclaimed Money database using your identity card number. This shows any dormant accounts already transferred to the government, along with other unclaimed funds like forgotten insurance payouts or abandoned security deposits. 

Impact On Your Credit Score

Dormant deposit accounts don’t appear on CCRIS or CTOS reports since Malaysian credit bureaus track credit facilities like loans and credit cards rather than standard savings or current accounts. Problems only arise if the dormant account has attached credit features, where a current account with overdraft protection or a linked credit card could generate missed payment records if fees go unpaid and create negative balances that go unresolved.

The dormancy itself isn’t a credit issue, just any outstanding obligations tied to the account that matter for reporting purposes.

Tracking Down Forgotten Accounts

If you’re not sure which bank holds your old account, old employment records often reveal forgotten salary accounts, so check past tax statements, EPF contribution records, or any paperwork from previous jobs for references to bank accounts you might have opened. Promotional accounts opened for cash bonuses or appliance giveaways are particularly easy to lose track of after moving house several times or switching employers.

If you remember the bank, visit a branch with your IC and staff can search their system for accounts under your name and identity card number. While banks are required to make reasonable efforts to contact account holders before transferring funds to the government, outdated phone numbers and old addresses mean these notices rarely reach people. Searching the online database can reveal balances you’d completely forgotten about.

To claim funds through the Accountant General’s Department, you’ll need the UMA-7 form, original documents showing ownership of the money, and your identification. Processing typically takes 30 to 90 days depending on the complexity of your claim.

Deciding Whether To Keep Or Close The Account

After reactivating an old account, consider whether you actually need it. Multiple accounts make sense for separating savings goals or managing household budgets, but unused accounts just create clutter and risk going dormant again.

If you’re reactivating an account just to close it, you can usually do both in the same branch visit. Bring your IC and be ready to provide a new account number for the remaining balance transfer. The bank will confirm closure and you’ll avoid any future dormancy issues with that account.

Looking for a new account that better fits your current needs? Compare savings accounts and current accounts to find options with higher interest rates, lower fees, or features that match how you actually use your money.

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