Understanding about Unclaimed Money in Canada
If you suspect you have unclaimed money in Canada, you can get it back. Financial products like Canadian-dollar bank accounts, paychecks, retirement funds, and security deposit refunds become unclaimed money if the accounts have been inactive for over ten years.
When your accounts remain inactive for over two years, the bank should contact you in writing using the address you provided. They will also contact you after 5-9 years if you don’t respond. After that, unclaimed funds get transferred to the Bank of Canada as unclaimed money.
How to Find Out If You Have Unclaimed Money in Canada
It is easy to think that only rich people have unclaimed assets. However, any Canadian citizen can have unclaimed funds. When you are busy building wealth, you could open many bank accounts, deposit cash and forget about it.
Other people buy treasury bonds when young and forget about them when they grow old. Luckily, the Bank of Canada keeps unclaimed assets safely, and you can find your money.
If you suspect you have bank accounts and financial assets you are not sure to exist, you can check them on the Bank of Canada website by typing your name. The search is free.
You must fill out the claim forms to get the unclaimed funds. These funds take about 10 to 12 weeks to arrive, and claiming them is free. However, if your unclaimed funds are older than 100 years, you won’t get a refund because these get handed over to federal coffers.
Do Banks Follow Up On Unclaimed Balances?
Banks and other financial institutions try to conduct the customers with inactive accounts. The bank uses the last address the account owner provided to contact them and not through emails or other electronic means of communication.
Communication about unclaimed funds is through written notifications to reduce scams and online fraud like in e-transfers. The bank will contact you after two, five, and nine years of inactivity.
If you get notified about your inactive bank account, ensure you follow up and retrieve your funds before they go to the Unclaimed Properties Office. Once the funds are sent to UPO, you must submit a claim request to get them.
Financial institutions send unclaimed funds notices at the beginning of every period of inactivity. The bank will also state that they will transfer your funds to the Bank of Canada in the last notification after nine years of inactivity.
Bank Balances Held By Unclaimed Properties Office
Federally regulated banks and trust companies send specific balances to the Unclaimed Properties Office. Other balances, like the US dollar and non-Canadian currencies, are unavailable at UPO. The types of unclaimed funds you can claim from UPO are;
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Chequing and Savings Accounts
If you suspect you had chequing or savings accounts with a financial institution ten years later, search your name on the Bank of Canada’s website. You could have some unclaimed funds.
Canadian citizens forget about their positive credit card balances and term deposits. Term deposit accounts are the type of accounts where you lock an amount of money, and you can only withdraw the cash at a particular time. Other easily forgettable funds are deposit receipts and Guarantee Investment Certificates, which might also remain unclaimed for long periods of time.
Negotiable instruments are transferable signed documents that promise a bearer a sum of payment at a specific date. Some negotiable instruments sent to UPO are certified cheques, money orders, bank drafts, and traveler’s cheques.
Bank Balances That Are Not Available At Unclaimed Properties Office
Some financial instruments are not sent to the Bank of Canada. If you suspect you have these balances, you can contact the companies involved directly for advice. Some of the instruments not held at UPO are;
- Bank accounts holding non-Canadian currencies. If you had a US dollar account in Canada, you should follow up on your unclaimed money with the bank.
- Safety deposit boxes, gold or silver certificates, and life insurance policies
- Properties with less than ten years of inactivity- if your bank accounts have been inactive for 5 or 9 years, contact the bank directly.
- Stocks and dividends- unclaimed equity shares and rewards should be followed up at the province’s securities commission.
- Bank balances of less than $2
How to Ensure Your Assets Don’t Go Unclaimed
Having too many bank accounts and other investments could end up in Canada’s unclaimed money accounts. However, taking precautions earlier will protect you from the hustle of crafting claim forms and waiting for long periods. Some ways to keep check of your assets are;
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Inform Your Family about Your Investments and Savings
Money is a sensitive topic many people are not comfortable having, even with family members. However, you can have a general conversation about your bank accounts and the other investments, including their locations.
Your family is the primary beneficiary of your financial assets, and they can easily follow up with them in case of death. Therefore, ensure you mention to your parents, spouse, or children the insurance policies you have, bank accounts, and other valuable assets.
If you have many bank accounts, forgetting one or two is understandable. It can sometimes help to track your banking information by writing down each bank account’s information in a notebook or diary. Include the email addresses used to open these accounts, the account number, and investment details.
You should also include details of your real estate properties and tax pins. However, bank PINs and passwords are sensitive information, so you do not write these down anywhere for security reasons. Instead, do your best to remember these passwords and keep track of them through password managers if needed.
- Don’t Ignore Financial Emails And Messages
Most people don’t read bank emails unless they are concerned about the safety of their accounts. However, ensure you check your financial institution’s emails because they could contain important information.
If the bank asks for responses in a survey or voting, ensure you participate. This keeps your contacts and accounts active, and the financial institution will quickly contact you in an emergency.
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Check Your Accounts Regularly
Log into your bank accounts and check if there are funds available. If you no longer need that account, you can close it. You should also download your bank reports yearly to check if there are deposits.
Logging into your bank accounts keeps them active and updated. You will also be able to notice any unwithdrawn funds lying in the account.
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Change Your Payment Details
You can channel your payments to the main active account if you have other bank accounts. Then, inform your customers and clients to pay through the specific account. Closing the unused account will also minimize random deposits.
Some people believe that only the rich write wills, but this is untrue. Regardless of your financial net worth, you can write a will to ensure your family is the primary beneficiary of your property.
Keep updating the information on your will because your family is sure to grow with time. For example, you can have a detailed will where you mention who gets which asset. This reduces conflicts among family members when you die and also reduces the chances of having unclaimed funds in UPO.
Final Words
If you suspect you have unclaimed money in Canada, the first step to claiming it is searching your details on the Bank of Canada’s website. You should then fill out a claim form to get your money back. You can prevent your money from ending up in UPO by conducting the bank before the end of 9 years of your account’s inactivity.