'Forgotten' money in Bristol bank accounts will go to charity
More than £1 million which is languishing in banks in the Bristol area will be seized by the Government if account holders don't claim it.
Savers have been warned to "use it or lose it" because legislation is progressing through Parliament which will mean any deposits which have not been touched for more than 15 years can be transferred to charities.
The Bill is expected to be passed by the end of this year.
The cash will be handed over to community projects, particularly those aimed at boosting opportunities for young people.
Figures released by one bank – HBOS – show that more than £256,000 is lying dormant in accounts in the former Avon area.
Deposits range from an average of £31 in Bristol South to an account containing £78,346 in Woodspring.
Kerry McCarthy, Bristol East MP, has been chosen to sit on the committee that will scrutinise the proposals.
She said: "It is a case of use it or lose it – although account holders don't have to take any money out, they just need to contact the bank to let them know they are still alive.
"The idea behind the Bill is great and the scheme is already working well in Ireland.
"But we don't want to rob anyone of what is rightfully theirs.
"Some people may have put money away for a rainy day and not touched the account for many years.
"We will also be looking carefully at how the money is handed out."
Money will only be removed from dormant accounts – those were there has been no activity for three years.
Halifax Bank of Scotland, which has been one of the financial institutions hardest hit by the global economic crisis, leading the Government to step in with a bail-out package, holds about one in five UK accounts.
This means the total amount of money in all dormant bank and building society accounts in the region is likely to exceed £1m. The national figure is about £150m.
People can find out if they opened accounts which they have forgotten about by visiting websites halifaxlocate or mylostaccount.
4 Comments
by Kerry, ST George
Wednesday, October 15 2008, 10:34AM
“The people who have commented have nothing to worry about. This legislation only applies to forgotten accounts, e.g. where someone has died and the executors of their estate didn't know about the account, or someone has moved and not notified the bank of their forwarding address. The latter quite often happens when someone has withdrawn most of their savings but just left a few pounds in an account. The banks will have to make reasonable efforts to trace the owners before any money is handed over to the fund, and will only hand over money after 15 years of the account lying dormant (and it is 15 years, not 3). Even if the account holder then gets in touch, say, 20 years down the line, they will be entitled to a refund from the Government of all their money. The choice is between the money sitting in dormant accounts, earning the banks interest (an estimated £30m a year) or being spent on good causes.”
by Kerry McCarthy, Bristol
Wednesday, October 15 2008, 10:33AM
“The people who have commented have nothing to worry about. This legislation only applies to forgotten accounts, e.g. where someone has died and the executors of their estate didn't know about the account, or someone has moved and not notified the bank of their forwarding address. The latter quite often happens when someone has withdrawn most of their savings but just left a few pounds in an account. The banks will have to make reasonable efforts to trace the owners before any money is handed over to the fund, and will only hand over money after 15 years of the account lying dormant (and it is 15 years, not 3). Even if the account holder then gets in touch, say, 20 years down the line, they will be entitled to a refund from the Government of all their money. The choice is between the money sitting in dormant accounts, earning the banks interest (an estimated £30m a year) or being spent on good causes.”
by diggers, filton
Tuesday, October 14 2008, 7:05PM
“Money inherited from parents/grandparents that was invested in one or more banks for my children as a trust fund or to fund my retirement/death costs will get stolen by the government to give to charities.
This money may not be forgotten but is dormant for good reason especially as people are advised to spread their money among the various banks.
The only time the account may get used is upon my children reaching the age where the trust pays out OR my death. Oh I get it - more of the spend it now and worry later that has been the story of the past ten years.
Total contradiction on the supposedly saving for old age in my second case.”
by Diggers, filton
Tuesday, October 14 2008, 6:56PM
“So I put money into a trust fund/account for my children which they get when they are 18, 21 or 25. If this was money from an inheritance that I received from parents/grandparents, that I did not need, then this is saving for my children's future.
So it is not touched and the government steal it to fund charities - how can that be right?
Also we are encouraged to save for our old age, put funds into different banks after this credit crunch but it gets stolen by the government.
To me this stinks of contradictory advice by those in the House of Commons and ignorant of common sense.”