Aman was left regretting his decision to leave money untouched in his bank account for three years when he discovered his savings were significantly depleted.
For many Americans, setting aside money for future needs can be challenging. A recent Bankrate survey of 2,400 U.S. adults revealed that over a third of workers are living paycheck to paycheck. However, for Canadian Hao Sun, his attempt to save for a future trip to the U.S. was unexpectedly undermined by his bank’s policies.
In 2022, Sun deposited $500 into an account with the Canadian Imperial Bank of Commerce (CIBC). The funds remained untouched for approximately three years. Sun had intended to use the money for a U.S. trip, but the opportunity never arose. Last week, when he checked his account balance, he was dismayed to find it had dwindled to $461 due to “dormant account” fees.
“I had left it alone for over two years and was charged $20 three times—once in May 2022, again in 2023, and a third time in 2024,” Sun told Newsweek. He expressed frustration after contacting the bank, which insisted the fees were in line with their policy and refused to issue a refund.
A CIBC spokesperson explained to Newsweek that personal accounts become dormant after 24 months of inactivity. “Clients are notified when their accounts have been dormant for 2, 5, and 9 years,” the spokesperson said. “If no action is taken after receiving these notices, service fees are applied. Clients can reactivate their accounts by performing certain transactions. Notices are sent out in January, with a deadline to respond by the end of April to avoid fees.”
The spokesperson added that clients could contact the bank to discuss specific situations and explore potential solutions.
Despite the bank’s stance, Sun’s dissatisfaction led him to share a screenshot of his account statement on Reddit, where it quickly garnered attention and over 12,000 upvotes. Many users sympathized with Sun’s predicament. “Time to switch banks,” one commenter suggested. Others criticized the fees as unfair. “It feels predatory to charge dormant account fees while the bank uses your money,” wrote another.
However, not everyone was sympathetic. Some commenters pointed out potential oversights in Sun’s account management. “Did you not check your statements for over two years?” asked one user. Another noted that accounts must be dormant for years before such fees are charged, suggesting that the bank likely attempted to contact Sun through other means.
Despite mixed reactions, Sun remains adamant that the fees were unjustified. “I don’t see any reason for these charges,” he stated.
Rubby Cordelia is a finance journalist for WVPrepBB.com, bringing expertise and clarity to her reporting on financial news. With a passion for demystifying complex economic issues, Rubby delivers insightful analysis and up-to-date information on the latest market trends, financial policies, and economic developments. Her work on WVPrepBB.com is essential reading for anyone looking to stay informed about the ever-changing world of finance.
