Have you ever opened a new account and then forgotten about it? Or maybe you’ve stopped using an account for a while, and it’s just been dormant. Dormant accounts are those that have not been used for an extended period. While letting these accounts sit untouched may seem harmless, it’s essential to manage and review them regularly.
Failing to manage dormant accounts can lead to several risks and issues. For example, if an account has not been used in a while, it may be more vulnerable to security breaches or hacking. In addition, you could be missing out on potential financial opportunities, such as earning interest on a savings account or receiving discounts or rewards from a loyalty program. If you register a company today, make sure to manage your Dormant accounts properly from the start.
This blog post will provide six easy ways to manage your dormant accounts and minimize these risks. From conducting a periodic review to setting up account alerts, these tips will help you stay on top of your dormant accounts and make the most of your financial resources. So, let’s get started!
1. File Your Dormant Accounts
Filing dormant accounts can help in their management by providing a clear, organized record of your accounts. By keeping all your account information in one place, you can more easily review and evaluate your accounts to identify any that may be dormant. This can help you take action to either close or reactivate the accounts, as well as stay informed about any activity on your accounts.
In addition, filing dormant accounts can help you track important information, such as account balances, fees, and terms. This can be especially helpful if you have multiple accounts or accounts with different financial institutions or companies. By keeping all this information organized and accessible, you can more easily manage your dormant accounts and make informed financial decisions.
2. Conduct A Periodic Review Of Your Accounts
One of the most important things you can do to manage your dormant accounts is regularly reviewing and evaluating them. This will help you identify any accounts that may have become dormant and take action to either close them or reactivate them.
You can conduct a periodic review of your accounts in a few different ways. One option is to create a spreadsheet that lists your accounts, including the account name, balance, and last activity date. This will give you a clear overview of your accounts and help you spot any that may be dormant.
Another option is to use a financial management tool, such as a budgeting app or personal finance software. These tools can often summarize all your accounts in one place, making it easy to see which ones are active and which are not.
3. Close Accounts That Are No Longer Needed or Used
If you come across an account during your review that you no longer need or use, it’s a good idea to close it. This will help reduce clutter and make it easier to manage your finances, and it can also help reduce the risk of security breaches or fraud.
To close an account, you’ll need to contact the financial institution or company that manages the account. They will likely have a process for closing accounts, which may involve filling out a form or providing certain information. It’s essential to follow their procedures carefully to ensure that the account is properly closed.
Sometimes, you may need to pay off any outstanding balances or fees before closing the account. Be sure to check with the financial institution or company to see if there are any requirements you need to meet.
4. Consolidate Multiple Accounts Into One
If you have multiple accounts for the same purpose (such as multiple savings accounts or credit cards), consider consolidating them into a single account. This can make it easier to manage your finances and track your spending and help you take advantage of better interest rates or rewards programs.
To consolidate accounts, you’ll need to transfer the balances from multiple accounts into one. This can often be done through a balance transfer or money directly from one account to another.
Before consolidating your accounts, compare the fees, interest rates, and other terms of each account to ensure that you are getting the best deal. You may also want to consider closing any accounts that are no longer needed or used to streamline your financial management further.
5. Set Up Account Alerts
Setting up account alerts is another effective way to manage your dormant accounts. These alerts can notify you of any activity on your accounts, such as a purchase or balance change, so you can stay on top of your finances and detect any potential issues.
There are many different types of account alerts you can set up, depending on the type of account and your needs. Some common examples include:
- Balance alerts: These alerts can notify you when your account balance reaches a certain level, such as when it falls below a minimum balance requirement or exceeds a maximum limit.
- Transaction alerts: These alerts can notify you of any transactions on your account, such as purchases or cash withdrawals.
- Account activity alerts: These alerts can notify you of any activity on your accounts, such as login attempts or account changes.
Your financial institution or company should have a process for setting up alerts, which may involve opting in through their website or mobile app or contacting customer service.
6. Consider Freezing Your Credit
Credit freezing, also known as credit locking, is a way to protect your dormant accounts and credit history from being accessed without your permission. When you freeze your credit, it becomes more difficult for other people to open new accounts in your name or access your existing accounts.
To freeze your credit, you’ll need to contact each of the three major credit bureaus (Equifax, Experian, and TransUnion) and request a credit freeze. You’ll need to provide personal information, such as your name, date of birth, and social security number. Each credit bureau may have its fees and requirements for freezing your credit, so be sure to check with them before proceeding.
Once your credit is frozen, you’ll need to provide a unique PIN or password to unfreeze it when you want to apply for new credit or access your existing accounts. This can help protect you from fraud and unauthorized access to your accounts.
Concluding Thoughts
Are you struggling to keep track of your dormant accounts? Don’t risk missing out on financial opportunities or leaving yourself vulnerable to security breaches.
Follow these six easy tips to manage your dormant accounts: conduct a periodic review, close accounts no longer needed, consolidate multiple accounts, set up account alerts, use strong passwords, and consider freezing your credit.
Protect your financial resources and safeguard your accounts with these simple steps. Don’t let dormant accounts hold you back – take control today!
