Why Banks Hate Inactive Accounts?

Banks are everywhere, if you just go out and take a round of your city or town you will find multiple banks. And if you get into the lobby of any bank and tell them that you want to open a new account.

You will see a big smile on the face of the bankers working there.

That is because the bank can run successfully only when it has enough customers. You will get a very good response from the bankers.

And the account you want will be opened in no time.

It sounds different but what I am going to tell you now is a true fact.

The amount of time it takes to close a bank account is more. Then the amount of time it takes to close a bank account.

Opening and closing a bank account is fine, these things are of everyday routine to the banks. But if you have an inactive account with the bank. Then your bank will not tell you but it hates your account.

Why Do the Banks Hate Inactive Accounts?

banks hate inactive accounts

Today let us understand why this happens and what problem do the banks have with the inactive accounts.

Getting New Customer Costs too Much

If you ever meet a marketer you can ask him or her about the costs involved in getting a new customer. It is an open secret that it costs too much.

The bank has to put in a lot of money to attract a new customer like me and you.

So when the bank has already spent money on attracting the customer to open a bank account. And then later on the customer keeps the account inactive.

Then the investment what the bank has done to get a person as a customer goes to waste. If the account is inactive there are no transactions happening.

It means the bank is not earning much out of your account. This is one of the major reasons why banks hate inactive accounts.

Debit Card Issuing Charges

Whenever you open a new bank account the first thing you receive from the bank is a debit card. Of course, you will get some other things too.

But the debit card is what the customer expects to get from the bank soon after opening the account.

There is a huge amount of costs that the banks pay to issue a debit card.

The first cost is of printing the card, the quality of plastic that is used will be of a set standard. And that good quality plastic costs money.

After that, a magnetic strip and a chip come on the card which also costs money to the banks.

Upon everything, the transactions done by the debit card are not managed by the bank. There are companies like VISA and MasterCard which do it from the bank.

So whatever transactions you do with your debit card, there is a charge involved behind it. Which is borne by your bank.

Online Banking and Account Security

All the banks provide online banking facilities to their customers. We can say it has turned into a basic necessity of banking.

But this comes at a cost of the banks.

They have to first hire a software company to design the online banking systems and provide them to the customers.

The story does not end there. There will be serious security threats to the online banking systems of the banks. So they again have to invest in hiring the developers who will take care of the systems.

Ultimately here, the design, development, deployment, and maintenance of the online banking systems is a huge recurring cost to the banks.

Printed Documents, too Costs Money

Along with the debit card, we also get a bank passbook, cheque book, and some other documentation from the bank.

These are important documents the banks have to make sure that the documents are of high quality. So again this will involve costs which the banks have to bear.

Is there any way I can Help out the Bank?

After discussing the reasons why banks hate inactive accounts, I am quite sure you might have got this thought of helping out the banks. Yes, you can help the banks.


By closing the accounts you are not using anymore. This will ensure that the banks don’t have to spend money unnecessarily. You can refer to Accounts Closers to learn how you can close the bank accounts.

If you don’t use an account for a very long period of time and the balance goes negative. Then you can destroy your own credit score.


Banking is a serious business. And there are a lot of things going behind the scenes which are not known to the customers. And these are some of the reasons why the banks hate inactive accounts. There are a lot many other reasons too. If you know any banker you can discuss it with them for more in-depth insights.

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