In general, banks define dormant account (sometimes referred as inactive) when an account does not have any transaction (deposit or withdrawal) for a continuous period of at least 12 months. When your account becomes dormant, the bank would send you a notice (letter) to the registered mailing address to remind you to activate your account. You may be required to withdraw or deposit some money over the counter to activate your account.
In addition, should your account balances be RM10 or less, the bank would also inform you of its intention to close the account. The bank will send you a second reminder when it does not receive any response from you (i.e. for activation of account or objection to the closure) within 3 months after the first notice. If there is still no response after 2 notices, the bank may proceed to close the account and absorb the balances as service fee.
For account with balances of more than RM10, the account will usually be charged with a dormant account service fee typically at RM10 per annum, until the balances are exhausted or up to 7 years whichever is earlier. Please refer to the comparative table on fees and charges in bankinginfo or fees and charges-I in Islamicfinanceinfo for the fee imposed by individual banks.
When your account remains dormant for a period of 7 years, the account will be classified as unclaimed moneys. Under the Unclaimed Moneys Act (1965), the balances will be transferred to the Government. You may recover your unclaimed moneys from the Registrar of Unclaimed Moneys by submitting form UMA-7 and the required supporting documents at any Registrar offices nationwide. There is no time limit for you to claim your money back.
Contact details of the Registrar are as follows:
Pendaftar Wang Tidak Dituntut
Jabatan Akauntan Negara Malaysia
Bahagian Pengurusan Amanah dan Sekuriti
Menara Maybank, 100 Jalan Tun Perak
50050 Kuala Lumpur
Tel.: 03-2034 1850
Fax: 03-2072 5707/03-2026 7430
source: Bankinginfo website