New moves to raid forgotten bank accounts

4:10pm Wednesday 15th October 2008

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More than half a million pounds languishing in accounts across Sussex will be raided by the Government unless account holders claim it.

Legislation progressing through Parliament would lead to deposits untouched for more than 15 years being transferred to charities to fund financial advice and training for young people.

Many high street banks have begun campaigns to try to reunite savers with their money, including HBOS, which has discovered it holds more than £25 million in dormant accounts, including one deposit – in North London – of £188,281.

The bank has produced figures for each Parliamentary constituency, which reveal there would be 1,651 depositors affected across Sussex.

Sums in the county’s dormant accounts range from relatively small amounts to single deposits of £55,805 in Brighton Pavilion, £38,523 in West Worthing and £31,400 in Crawley.

Because HBOS holds about £1 in every £5 of the nation’s savings – and has £578,889 in its dormant accounts across Sussex – the amount in all banks untouched by county savers is likely to be more than £2.5 million.

Nationally, about £150 million is estimated to be lying dormant in banks and building societies.

An account is classed as dormant when the bank or building society has had no contact with the account holder for a period of three years.

The Dormant Bank and Building Society Accounts Bill, which received its second reading in the Commons last week and is expected to become law by the end of this year, would entitle the Government to seize the cash for charitable purposes after 15 years.

But a Treasury spokesman stressed some of the money would be set aside to refund any savers who approached the bank after the deadline to ensure no one lost their deposits.

Although the qualifying period has been set at 15 years, it could be shortened in the future.

About 80% of money left for 15 years remains unclaimed.

People can find out if they opened accounts which they have forgotten about by visiting www.halifaxlocateaccounts.co.uk, www.boslocateaccounts.co.uk or www.mylostaccount.org.uk.

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