BBC money expert Laura Pomfret has issued a stark warning to Britons about the widespread problem of forgotten bank accounts, which could be quietly accruing charges or even being transferred to non-profit organisations without the owner's knowledge.
Appearing on BBC Morning Live, Pomfret explained that many people hold multiple bank accounts and may lose track of one or two during life changes such as moving house, separating from a partner, or abandoning a savings goal. These so-called 'lost accounts' are surprisingly common, though host Rav Wilding admitted he was baffled by the concept of having more than one account.
Pomfret revealed that billions of pounds sit unclaimed in old UK bank accounts, pensions, and investments. She stated: "There's billions of unclaimed financial assets lying in old UK bank accounts, pensions and investments. £2.1billion was reunited with people just in the first half of this year so people are finding them."
What Happens to Dormant Accounts?
Under the Dormant Asset Act 2022, banks are permitted to transfer funds from accounts that have been inactive for 15 years to non-profit causes. This means that if you have a forgotten account, you could lose the money permanently if you do not act in time.
Additionally, even if the account is not yet dormant, it may still be accruing interest, overdraft fees, or other charges. Ignoring the account could lead to unexpected debts or reduced savings.
How to Find a Lost Account
Pomfret advised that the first step is to contact the bank or building society you believe held the account. You can do this by phone or in person, and you may need to provide identification or proof of address. You do not need the account number or sort code to start the process.
If you are unsure which institution holds the account, she recommended using mylostaccount.org.uk, a free online service that searches for UK-based personal bank, building society, and National Savings and Investments (NS&I) accounts. Users answer questions about their name, date of birth, current and previous addresses, and which institution they think held the account.
Reclaiming Your Money
Once the service identifies your account, you must liaise directly with the bank to recover the funds. Pomfret noted that the number of accounts a person should have depends on their individual circumstances. She personally keeps things simple with a few accounts, each serving a different purpose.
During the programme, panel member Holly Hamilton admitted she had used the same account since her student days, while Dr Oscar Duke shared a timely anecdote: "I was told I had a dormant one just the other day, I got an email; 24p plus interest!"
