How does an account become classified as “Inactive”?
In order to keep an account in “active” status (Section 73.003(b) of the Texas Property Code), an account holder needs to make a deposit or withdrawal at least once per year. The automatic crediting of interest to the account by the bank does not count to keep the account active. The Code does not require a bank to notify the depositor when an account becomes inactive. Section 73.003(a) of the Code prohibits a bank from service charging an inactive account.
An account is inactive if for more than one year there has not been a debit or a credit to an account because of an act by the member and the member has not communicated with the credit union. The automatic crediting of dividends or interest to the account by the credit union does not count to keep the account active. The Code does not require a credit union to notify the member when an account becomes inactive. Section 73.003(a) of the Texas Property Code prohibits a credit union from service charging an inactive account.
