The original CD matured around 25 years ago, and Maisie wants the money. Sadly, the bank refuses to pay her because the paperwork isn’t definitive proof that it owes her, as she could have cashed the CD long ago even without providing the original document at the time.
So, how can Maisie try to get her money back, and does she have much hope of doing so successfully?
Banks don’t keep dormant accounts open forever
Unfortunately, Maisie’s biggest problem is that her CD is likely dormant by now. “CDs are generally considered abandoned and escheated to the state three to five years after the maturity date,” Ricky Maldonado, co-founder & CEO at Reclaim.org, told Moneywise. The exact timeline depends on the “escheatment” laws in the relevant state.
Not only is the CD likely dormant, but the bank also may not have any related records. “Federal rules generally require five years of retention for specified bank records,” Junde Liu, a tax and corporate associate at Shuffield Lowman, told Moneywise. “A separate rule requires banks to retain customer identifying information for five years after a deposit account closes, while records describing identity verification generally remain for five years after they are made.”
Gene Boykin Jr., founder and CEO of The GoGetter Family, a wealth protection firm, told Moneywise that Maisie could try the bank anyway, suggesting that she “contact the issuing bank and request an account history investigation.” If she does, he advises that she provide as much information as possible, including the name on the account, purchase date, and account number.
And, Boykin said, she can use the FDIC’s BankFind Suite to identify the bank’s successor if it merged or changed hands. However, there’s a good chance the bank simply won’t have the information needed anymore to help her since it could have destroyed her records a long time ago and been well within the law.
Try an unclaimed property search
If Maisie’s bank can’t find her missing $30,000 CD, this doesn’t necessarily mean she’s definitely out of luck.
“When a CD sits untouched long enough, the bank has to hand the money over to the state as unclaimed property. It does not vanish. The state just becomes the holder,” said David Kassir, managing director of private wealth management at Manna Wealth Management.
Kassir recommended that Maisie “search the unclaimed property site for every state you have lived in, and run your name through missingmoney.com too, which covers most states in one search.”
