Friday, 26 April 2013

Do you have an inactive bank account? Use it or lose it

The below message was passed on to me by a mortgage broker I know and I think it is something really important that everyone should know.  This really ticks me off and I cannot see the governments justification in doing this.

Our Federal Government has just passed legislation that gives them the power to take your money from your bank account if you have not used it for 3 years.

Yes, you did read this correctly.

From the 31st of May this year, the Federal Government will have the power to transfer your bank balance to their coffers.

The definition of "using" a bank account involves either withdrawing or depositing.

Note: Interest payments are not considered to be deposits and fees are not considered withdrawals under this legislation.

What to do NOW?

1. Check all of your bank accounts and make sure you have transacted over the last 3 years. If you haven't used your account during this time, make a withdrawal or deposit. Otherwise you will lose it.
2. If you cannot remember where a long lost account may reside, use this ASIC tool to conduct a search 

If, for some reason, your money is taken by the Government under this law, you will be able to apply to ASIC to have it returned. However, this in not likely to be a quick process.

Someone commented on this post that I was presenting this as a "conspiracy by the government to defraud its citizens of their hard earned cash...::

And that:

There has been legislation in place for many many years under which financial institutions are required to remit "unclaimed money" to ASIC. The rules for this are stipulated within the terms and conditions for your account. The latest legislation merely reduced the timeframe from seven years to three, otherwise the rules haven't changed. The rule is intended to protect money in people's accounts from being slowly eroded with fees and charges applied by financial institutions.

Regardless of the reasons I am passing this information on the basis that if there is nothing to hide why does the government not promote the change widely and educate the public on how to protect their money.

Also if this is "intended to protect money in people's accounts from being slowly eroded with fees and charges applied by financial institutions." 

 Then why doe the government not just pass legislation  that addresses the issue of bank fees and charges?

I hope this message saves your money.

Please pass this on to everyone you know in case they are not aware of this.


  1. I am gobsmacked. Love the way they are making the public aware of this one so they can do something about it, NOT! Is this not stealing? Taking someones money without their consent? What else has been legislated without our knowledge or consent. What about all the elderly out there who dont online bank and dont perhaps check their accounts because they are in nursing homes where their needs are met. What protection do they have. Perhaps they have old accounts that relatives are not aware of. Thanks for the info Fi, taking a look into my own and singing it loud and clear to my family.

    1. Phew! my 83 year old Mum already knew and adjusted her accounts. She found this out because her husband died and she had to sort through all her accounts that were joint. This seems so wrong. Shouldnt the banks holding these accounts send out a letter to advise that this is coming.

    2. I agree Lynda. Although I suspect address changes could pose a problem. However 3 years in not very long. Many people go overseas on working holiday for longer than that.

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  3. Calm down everyone! It's not all that dreadful! You can reclaim your money, anytime, no time limit, with interest. All that is happening is that instead of sitting in hundreds of "lost" bank accounts, which are hard for people to find, and where the bank gets the benefit, the Australian Securities and Investment Commission holds it in one easy to search register. You can prevent it being transferred to them by showing any sign of knowing it exists, and if you can search their "unclaimed money" register easily to find if they've got money you'd forgotten about, including old super funds or work entitlements. You can get it back, with interest, even if you find it twenty years later. I've found the service to be fantastic - I found an old super fund from yonks ago. I think this is just the banks not liking the labour party, and wanting to keep the money themselves, and spreading misinformation.

    1. Thanks Linda. It is good to hear it was a good service.

  4. Ummm.. I did not know this about the bank accounts...I knew there was something about the superannuation funds. Without consent is disgraceful. They want people to save money but then they want to take it off them. The whole thing is ridiculous.

  5. What is the benefits of paid advertising Online when we uses this methods apply for paid advertising Online? What is the more affected for both paid advertising Online Or paid advertising in your poin t of view tell me some benefits of both paid advertising?

  6. What is a business tell me some point of business? What is the use of business in bank deposit accounts in your point of view tell me the some uses of business in bank deposit accounts? Tell me some related information about the bank deposit accounts


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