What is the legal status of my non-operative savings deposit in a bank after five years?

Full Question:

I returned to Iowa after five years last week. While I was in Iowa, I had a savings deposit in a bank. However, I had no contact or transactions with the bank the last five years I was away. What is the legal status of my savings deposit in the bank?
02/06/2017   |   Category: Abandoned Property   |   State: Iowa   |   #31617

Answer:

In Iowa, any savings deposit made with a banking organization is presumed abandoned unless the owner has, within three years, communicated with the bank in any of the means stated in Iowa Code § 556.2.

Iowa Code § 556.2 reads as:
 
“The following property held or owing by a banking or financial organization or by a business association is presumed abandoned:
     1. Any demand, savings, or matured time deposit made in this state with a banking organization, together with any interest or dividend, excluding any charges that may lawfully be withheld, unless the owner has, within three years:
         a. Increased or decreased the amount of the deposit, or presented the passbook or other similar evidence of the deposit for the crediting of interest.
         b. Corresponded in writing with the banking organization concerning the deposit.
         c. Otherwise indicated an interest in the deposit as evidenced by a memorandum on file with the banking organization. Such memorandum shall be dated and may have been prepared by the banking organization, in which case it shall be signed by an official of the bank, or it may have been prepared by the owner.
         d. Had another relationship with the bank in which the owner has:
             (1) Communicated in writing with the bank.
             (2) Otherwise indicated an interest as evidenced by a memorandum or other record on file prepared by an employee of the bank and if the bank communicates in writing with the owner with regard to the property that would otherwise be abandoned under this subsection at the address to which communications regarding the other relationship are regularly sent.
         e. Been sent any written correspondence, notice, or information by first class mail regarding the deposit by the banking organization on or after July 1, 1992, if the correspondence, notice, or information requests an address correction on the face of the envelope, and is not returned to the bank organization for nondelivery, and if the bank organization maintains a record of all returned mail.
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In the instant case, your savings deposit in the bank may be presumed as abandoned since you have had no communications with the bank for the last five years.