The current or savings account maintained with a bank can turn idle or inactive and later dormant if you do no perform transaction in the account on an annual basis.
And to make it operative again you will have to follow the tedious documentation procedure required by the bank which can take few days.
The idle account with idle funds earning a meager 4% interest (except with select banks) return in case of savings account can be deployed elsewhere for better gains.
Depending on the investment horizon of the account holder, if it happens to be short term, investment in liquid funds is suggested to yield far better returns.
In the circumstance, when other than rendering your bank account in the idle status you also do not monitor it, you may have to incur heavy fees for not maintaining minimum balance in the account as stipulated by different public and private sector banks.
Also, in order to avoid the accumulation of such idle funds at the bank's end that attract high probability of being misappropriated as well as used in other fraudulent activity such as money laundering among others, close all such accounts that you have maintained over the years after following up with the concerned bank.
Available recourse in case you do not transact in the account
So, even in a case when you do not perform transaction in an account with substantial funds while still have to maintain the account for some reason, you can opt for the auto sweep out facility provided by different banks. Read to know more about auto sweep out facility by banks.
The auto sweep out facility thus comes in handy for such account holders and prevents their bank account from turning into idle or inoperative account while at the same time yielding higher returns. .
Also, a single transaction either through check issuance, debit card transaction or a simple online transaction from the account for your purchase or other payments will be sufficient to leave your account operative and active.