Preventing Inactive Bank Accounts: Strategies to Stay Engaged With One's Bank

Preventing Inactive Bank Accounts: Strategies to Stay Engaged With One's Bank


An inactive bank account can lead to several hassles - from losing access to one's funds to paying penalties for reactivation. It's crucial to keep the account active and engaged. Explore simple strategies to prevent account dormancy and safeguard one's hard-earned money.

1. Set Up Online or Mobile Banking Access

The simplest way to keep accounts active is by regularly monitoring them. By logging in frequently and conducting transactions, customers can ensure their account remains active and their money stays accessible.

Online banking offers numerous benefits beyond its convenience, including real-time account monitoring, instant transaction processing, time-saving without visiting branches for routine tasks and no risk of account inactivity.

2. Schedule Automatic Payments or Transfers

Most banks, including Federal Bank, offer the facility to set up standing instructions for recurring payments. Automating bill payments guarantees consistent transactions in the account, keeping it active and engaged. Another smart strategy is to schedule periodic transfers between accounts. By moving funds between the accounts at regular intervals, users can maintain activity in both accounts.

3. Opt for Paperless Statements

Switching to e-statements not only reduces paper waste but also keeps one updated about their account. Banks provide:

  • Paperless statements with real-time transaction alerts via SMS and email.
  • 24/7 access to view and download statements.
  • An eco-friendly alternative to physical statements.

4. Link Other Financial Accounts to Facilitate Seamless Transactions

If one has investment accounts like mutual fund folios or trading accounts, consider linking them to the primary bank account. This allows smooth flow of funds for investments. Individuals can set up a Systematic Investment Plan (SIP) where a fixed amount is automatically debited from their bank account each month to purchase mutual fund units. Similarly, by linking a trading account, one can quickly transfer funds for stock transactions.

5. Establish Low Balance Notifications

One of the common reasons for account inactivity is insufficient balance. By setting up low balance notifications, individuals can stay informed about their account status and take timely action. Here's how:

  • Set an alert amount : Decide on a minimum balance threshold that suits one's needs.
  • Enable notifications : Opt for email, SMS or push notifications from the bank when account balance falls below the set amount.
  • Take prompt action : Upon receiving a low balance notification, deposit adequate funds.

6. Make Frequent Deposits

Regular transactions in the form of deposits, withdrawals, fund transfers or bill payments can keep the account active. One of the most convenient ways to ensure regular deposits is to set up direct deposits. This involves instructing one's employer or clients to credit salary or payments directly into the bank account.

Another easy way to make frequent deposits is by using the bank's mobile cheque deposit feature. This allows to deposit cheques into the account from anywhere, at any time, using a smartphone.

7. Utilise Budgeting Tools Offered by the Bank

Many banks offer built-in budgeting features within their internet banking or mobile banking platforms. By actively using these features, customers not only engage with their bank account regularly but also gain a better understanding of spending patterns. Banks also provide savings goal features that help set and track financial objectives. This helps define savings goals and monitor progress towards those goals.

8. Participate in Loyalty Programmes

Many banks offer loyalty programmes that reward customers for using their services. Individuals can earn valuable perks like points, cashback and tiered benefits. One can make their Debit Card the default payment method for groceries, fuel, dining and online shopping to meet the activity criteria and accumulate reward points.

9. Communicate with the Banker

A strong working relationship with the banker ensures timely support, valuable advice and a heads-up about any changes or new offerings. Don't hesitate to reach out to the banker if there are doubts about a product, service or policy. Whenever customers have a good or bad experience with their bank, they should let the banker know.

10. Periodically Review Account Usage

In addition to preventing dormancy, periodically reviewing account usage can streamline and optimise banking experience:

  • Analyse spending patterns for savings.
  • Explore digital banking features like mobile apps and online bill payment.
  • Upgrade to accounts with better interest rates, lower fees or additional benefits.
  • Stay informed about new bank products, services or offers.

With Federal Bank's user-friendly online banking portal and mobile app, staying engaged with one's money has never been easier. To gain more insights, visit the Federal Bank blog.