Forgotten accounts

15.07.2005 Both the Labour and Conservative Manifestos have set out plans for taking action on dormant bank accounts. It is estimated that some ₤15bn is currently sitting in such accounts. The Labour and Conservative Parties have addressed this problem in their manifestoes.

Following attempts by financial institutions to unite cash with owners, the Labour Party would like to see unclaimed funds go towards community causes. On a similar note, the Conservative Party wants the money to go into pension funds.
So how do dormant accounts come about? More often than not, a current account is opened, and after several years, is totally forgotten about. An account is considered dormant when it has been inactive for a length of time; usually three years. 
The money in dormant accounts is still legally claimable by its owner and will collect interest, if interest is payable. However many people who have a claim to money are simply unaware of it. For example the money set aside for children by deceased parents, can quite easily drop off the radar with the child never being aware that it existed. Similarly, contributing to the source of unclaimed income is older people, who invest for their grandchildren, but forget to tell their children and then die. 
In theory, descendents of the deceased still have a right to the money, but in practice, they are often unaware that it exists or deterred by the thought of having to prove their rights and the time involved in this. 
There are organisations in existence which help track accounts. For a fee, the Unclaimed Assets Register will check old accounts and tell you where you have money. Other organisations like National Savings & Investments will also help track money.