Reasons Why You Shouldn't Leave a Savings Account Unused

Imagine finding an old wallet in your drawer, tucked away and forgotten. You open it, hoping to find something valuable—maybe cash, an important card or a note you wrote to yourself. But instead, all you see is dust and expired receipts. That’s what happens when you leave a savings account untouched for too long.

At first, it seems harmless. You’re not withdrawing, spending or thinking about it. But an inactive savings account isn’t just sitting there quietly—it could be losing value in ways you didn’t expect. There are many reasons why ignoring a savings account can work against you. In this blog, we’ll break down what happens when an account is left idle and why keeping it active is in your best interest.

• No access granted

Ever tried using an old phone number only to realise it’s been deactivated? That’s what happens with a savings account that remains untouched for too long. Banks categorise such accounts as inactive first and then dormant if there’s no activity for an extended period. Once dormant, you might not be able to withdraw money, transfer funds or log in without extra verification. And let’s be honest, the last thing you want is to jump through hoops just to access your own money.

• Lost investment opportunity

A savings account isn’t just for parking your money—it’s a gateway to better financial opportunities. If your funds are just sitting there, earning minimal interest, you’re missing out on smarter ways to grow your wealth. Imagine if that idle money was in a fixed deposit, a high-interest account or an investment plan instead. Even a small amount left untouched could have been working for you instead of just lying dormant, doing nothing.

• Penalties on not maintaining monthly average balance

Many savings accounts come with a minimum balance requirement. If you don’t maintain it, the bank doesn’t just look the other way—they charge a penalty. These charges may seem small at first, but over time, they add up. What’s worse? If you’re not checking your account regularly, you might not even realise that you’ve been losing money to these fees. And let’s face it, no one likes paying unnecessary charges for something as simple as keeping an account open.

• Benefits lost

Savings accounts aren’t just about deposits and withdrawals anymore. Many banks offer cashback on debit card transactions, exclusive discounts on partner brands and reward points for spending. If your account is inactive, you miss out on all these perks. Think of it like having a membership to an exclusive club but never using the benefits. From shopping discounts to free movie tickets, there’s real value in keeping your account active and making the most of what it offers.

Inactive today, dormant tomorrow

A savings account is classified as inactive if there are no transactions—deposits, withdrawals or transfers—for 12 months. If this inactivity continues for 24 months, the bank marks the account as dormant. Making a transaction before this period resets the inactivity status.

How to keep a savings account active?

Regular activity ensures easy access to funds and prevents unnecessary complications in the future. Maintaining an active status is simple. You can:

Conclusion

Now that you know the consequences of leaving a savings account unused, don’t let it slip into inactivity. If you still need the account, keep it active with small transactions. If you don’t, it’s better to close it properly rather than letting it sit and attract penalties or restrictions. Dormant accounts can create unnecessary hassles and recovering funds later can be time-consuming. A little attention today can save you from bigger problems down the line. So, check your accounts, keep the ones you need and close the ones you don’t. Don’t let your money get stuck in limbo!