Dormant Accounts Guide

The why’s, when’s and how’s of account dormancy.

Why does a Savings account become dormant?

We apply transaction dormancy to an account as a safeguard to the customer. This applies if we have not seen your passbook for updating or if you have not transacted on the account for three years or more. 


Will you tell me my account has become dormant?

As of January 2013, we will write to you at least one month before your account becomes dormant to give you the opportunity to keep the account active. In the letter we will ask you to either send in your passbook for updating, or to make a transaction on the account. We will also inform you of the exact date that the dormancy will apply.


How does Dormancy affect my account?

Dormancy does not affect your account’s terms and conditions. The current interest rate will still apply and interest will continue to accumulate. All that we will require from you if your account does become dormant is one form of identification from our Identification Requirements Guide, together with your passbook for updating or a transaction posted on the account to reactivate it. 


How do I reactivate my dormant account?

To reactivate a dormant account, please send us one form of identification as listed in our Identification Requirements Guide, and forward your passbook for updating or post a transaction to the account. If your dormant account is a Cash ISA, you can pay into the account provided you haven’t subscribed to another ISA in the current tax year and you have completed a Cash ISA renewal form. Please contact the Society if you require a Cash ISA renewal form. Once we have reactivated your account we will write to you to confirm that the account is no longer dormant and that it will not become dormant for another three years.


What if I have another live account?

If you have another account at the Holmesdale which you regularly use we will not require identification from you if you would like to update, or transact upon, your dormant account. Please be aware that our system will still label an account as dormant despite the customer having an active account.


I have been in contact with the Holmesdale over the last three years; why has my account become dormant?

Unfortunately your account will still become dormant if you have not had your passbook updated or made a transaction. If you send a form to us, or write to us for any reason, please consider sending your passbook to us for updating simultaneously to avoid this scenario.


What is the Fifteen Year Dormancy Rule?

The Fifteen Year Dormancy Rule was applied under the Dormant Bank and Building Society accounts Act 2008. The HMRC website states:

“The Act forms the legal framework to enable banks and building societies to transfer money in dormant bank and building society accounts to a central reclaim fund for distribution to the benefit of the community, while ensuring that the right of account holders to reclaim their money is protected. The reclaim fund assumes the legal obligation to repay account holders whose deposits are transferred to the fund. Money not required to meet repayments is passed to the Big Society Bank for reinvestment in society.”

Sometime in the future the government may approach the Holmesdale and request that we implement this voluntary scheme; Therefore, we have been writing to customers encouraging them to get back in contact with us.

If you are one of our customers who have not used their account for nearly 15 years or more, please consider reactivating your account by sending us your passbook for updating, or posting a transaction on the account, together with sending us one form of identification from our Identification Requirements Guide. If you are unable to locate your passbook, please contact the Savings team for a Lost Passbook form.