Under recent changes to the law, deposits can be deemed unclaimed (dormant accounts) if a transaction has not been made on an account for three years or more, down from seven years previously.
Unclaimed funds are paid by banking institutions to ASIC, then the money is transferred to the Commonwealth of Australia Consolidated Revenue Fund.
You can reclaim your money from ASIC, there is no time-limit on making a claim, however this will involve making an application and proving that the money is yours. It may take months to get your money back.
To avoid your money being deemed unclaimed, you need to make regular transactions with your account, even for only $1. Fees, charges and interest payments are not considered a transaction.
Patricia Williams is a credit representative (400458) of BLSSA Pty Ltd ACN 117 651 760 (Australian Credit Licence 391237).