How to get the problem of "abandoned accounts" could soon be solved in Germany

What are newsless accounts?

Newsless accounts – also known as “abandoned” or “Dormant Accounts” – are bank accounts on which no activities were recorded over a longer period of time and in which the contact between the bank and account holder has broken off. Such accounts often arise when account holders die and no heirs are known or they do not know about the existence of the account. Forgotten second or third-party accounts can also include. It is estimated that between two and nine billion euros are slumbering on such accounts in Germany, as a contribution by Ruhr24.de shows.

Planned legal regulations

There is currently no legal definition in Germany as to when an account is considered to be without news, as it says. According to the current practice, funds fall to the banks on inactive accounts after 30 years, which you have to tax as a profit. The Federal Government is now planning to introduce a central registration register in which banks are obliged to report newsless accounts. A corresponding draft law is in preparation.

Use of the funds for social purposes

The measure agreed in the coalition agreement provides for the funds from newsless accounts to be transferred to a revolving fund, which is to be used to promote common good companies and social innovations. This model is based on role models such as Great Britain, where unused funds can be used for social issues after a period of 15 years.

Criticism and legal concerns

The federal government’s plans encounter criticism, especially on the part of the banks. The German banking association warns of legal hurdles and possible interventions in property rights. There is concern that the state could access funds that actually belong to someone just because no activity in the account is recognizable, as it says.

D. Maier / Redaktion Finanzen.net