The government has recently announced that financial institutions need to transfer all money from bank accounts that have been inactive for more than three years to the Australian Securities and Investment Commission (ASIC). Previously the account had to be inactive for more than seven years for the money to be transferred to ASIC.
Although this is a disappointing change to legislation, the good news is the money is not lost, if the money is transferred to the government it can be claimed back. The problem is that this process could be frustrating and time consuming.
Some tips to avoid, this issue, are:
- Ensure that you make some form of transaction on your account, on a regular basis.
- Make sure your contact details are up to date with your Bank or Financial Institution.
If you are making regular transactions on your account, your money will not be transferred to the government. Also if your address details are up to date, it will allow you to receive notification from your Bank before the money is transferred to the government.
If your money has been transferred to ASIC or if you are concerned if this impacts you please contact your Varria Financial Adviser. Also for more information you can go to https://www.moneysmart.gov.au/tools-and-resources/find-unclaimed-money