Introduction
A dormant account—sometimes called an inactive account—can quietly incur fees and complicate your banking relationship if left unchecked. Citibank defines a dormant account as an account with no customer-initiated activity for a specified period. This article explains Citibank’s approach to dormant‐account fees, the steps required to reactivate your account, and tips to keep your accounts active and fee-free.
1. What Constitutes a Dormant Account?
- Inactivity Period: Citibank typically considers a checking or savings account dormant if no deposits, withdrawals, ATM transactions, or online transfers have posted for 12 consecutive months.
- Notification: Before assessing any fees, Citibank will attempt to contact you—via statement inserts, email, or letter—to alert you that your account is nearing dormancy.
2. Dormant Account Fees
| Account Type | Dormant Fee | Frequency | Fee Waiver Conditions |
|---|---|---|---|
| Checking Accounts | $5–$10 per month (varies by product) | Monthly after dormancy | Waived if balance ≥ $100 or upon reactivation within 30 days |
| Savings Accounts | $3–$5 per month | Monthly after dormancy | Waived if average balance ≥ $300 or reactivated promptly |
| Money Market Accounts | $10–$15 per month | Monthly after dormancy | Waived at higher balance tiers or quick reactivation |
Exact fee amounts depend on the specific account product; see your “Schedule of Fees” for details.
3. Consequences Beyond Fees
- Escheatment Risk: After prolonged dormancy (typically 3–5 years), unclaimed balances may be turned over to state unclaimed-property agencies under state “escheat” laws.
- Impact on Credit & Services: While dormant accounts are not reported to credit bureaus, uncollected negative balances or returned‐item fees can lead to collections or account closure.
4. Reactivation Process
Step 1: Contact Citibank
- Online & Mobile: Log in to Citibank Online or the Citi Mobile® App and look for the “Reactivate Account” option under Profile & Settings → Account Services.
- Phone: Call the number on the back of your debit card or the general customer-service line.
- In‐Branch: Visit any Citibank branch with a valid photo ID.
Step 2: Verify Your Identity
- Provide personal details (date of birth, Social Security Number) and answer security questions to confirm account ownership.
Step 3: Conduct an Activity
- Make a Deposit or Withdrawal: A single customer-initiated transaction (even $1) reclassifies the account as active.
- Set Up a Recurring Transfer: Establish a recurring transfer from another linked account to maintain activity.
Step 4: Fee Reversal (if applicable)
- If you reactivate within 30 days of your first dormancy fee, Citibank will generally refund any charges assessed for that brief dormancy period.
5. Tips to Avoid Dormancy
- Set Recurring Transfers: Schedule a small monthly transfer (e.g., $10) from your checking to savings—or vice versa—to ensure continuous activity.
- Use Online Banking: Log in at least once every few months; even viewing your statement can count as “activity” if you generate a transfer or payment.
- Enroll in E‐Statements: Opting out of paper statements and choosing e-statements in Citibank Online triggers account activity.
- Link Products: Keep an active debit-card purchase or ATM withdrawal on file—small, occasional transactions reset inactivity timers.
Conclusion
Citibank’s dormant account policy protects both the bank and customers by encouraging regular account usage and compliance with state unclaimed-property rules. By understanding the inactivity thresholds, associated monthly fees, and the easy reactivation steps, you can ensure your accounts remain healthy and fee-free.
Proactive step: Set up a modest recurring transfer or debit-card purchase today—so your Citibank accounts stay active, accessible, and free from unexpected dormant fees.