The State of Texas requires by law that financial institutions track dormant accounts. These are accounts on which we have had no activity or contact with the account holder for a period of time. It will vary depending on type of account or product. In most cases, this means that Beacon Federal Credit Union must consider your account as dormant if we have not recorded a transaction or contact from you within 3 years. If Beacon Federal Credit Union has recorded no transactions or contact with a member for 3 years, the state requires that we close the account and send the funds to the Unclaimed Property Division of the Texas State Comptroller’s office.
Unclaimed Property Periods
- Accounts, certificates of deposits: 3 years
- Safe deposit box contents: 5 years
The period of abandonment for matured certificates of deposit is three years. The abandonment period begins on the day following the first maturity of the certificates – that is, the day following the end of the first term. Thus, abandoned certificates of deposit must be reported three years from the dates the owners were first able to recover the funds without penalties. Automatically renewable certificates of deposit have the same reporting criteria as other certificates of deposit.
Individual retirement accounts (IRAs) have an abandonment period of three years, which begins on the mandatory distribution date of the Required Minimum Distribution (RMD). Under federal law, the mandatory distribution date is April 1 of the calendar year following the calendar year in which the owner of the IRA reaches age 70½.
Preventing your account from becoming Dormant
To prevent your account from being flagged as dormant, please initiate a transaction on your account (the amount and type of transaction do not matter – dividend postings do not count) at least once every 3 years.
If your account has been flagged as dormant, but not yet closed and submitted to the state, you may contact Beacon Federal Credit Union directly at (281)471-1782 to remove the dormancy flag.