It's now easier to claim back the £1 billion in forgotten bank accounts

Last Updated: 1:23am GMT 07/02/2008

Website set up for savers to find lost cash. Esther Shaw reports

Savers with forgotten deposit accounts or other funds worth a total of about £1 billion they have not touched for 15 years or more are being offered a new service before the Government helps itself to the money next year.

Building societies, banks and National Savings & Investments (NS&I) set up www.mylostaccount.org.uk – the first free, "one-stop shop" website to trace forgotten funds this week.

For the first time, this will be able to trace cash in 59 building societies, 42 banks and NS&I – including the Post Office savings account.

Angela Knight, chief executive of the British Bankers' Association, said: "mylostaccount.org.uk will improve accessibility significantly. It is a key part of the industry' s commitment to make further steps towards reunifying customers with their money in advance of the statute-backed unclaimed assets scheme."

Brian Morris, of the Building Societies Association, said: "We want to reunite as many people as possible with their money; after all, it belongs to them. "This website will make it even easier for building society members and other customers looking for lost accounts to find them. Bringing together the three existing schemes means you can now search for building society, bank and NS&I accounts all in one go."

If someone thinks they have a lost account with a bank, a building society or with NS&I they can visit mylostaccount.org.uk and follow a few simple steps to start a search. The online form can be completed by the account holder or a nominated representative, giving as much detail as possible, including any previous names and addresses of the account holder.

This information only needs to be provided once before being passed to the bank, building society and/or NS&I. Current estimates from the BBA suggest that there is between £250m and £350m lying dormant in bank accounts, while BSA figures show there is around £150m in building society accounts; NS&I currently has around £466m in its accounts.

"One of the most common reasons why people lose track of their savings is when they move house and forget to give their provider the new address," says an NS&I spokeswoman.

"However, many also forget childhood savings accounts, and if people do not make a will, or forget to tell executors about all their finances, accounts can also be overlooked."

Despite oppostion in the House of Lords this week, the Government is pressing ahead with plans to introduce an Unclaimed Assets scheme in the first half of 2009. The Dormant Accounts Bill is intended to transfer all cash in dormant accounts to a central fund which can then be donated to charitable causes, focusing on youth services and financial inclusion and capability.

However, the legislation is said to ensure account holders can reclaim their money at any time, and this is to be regulated by City watchdog the Financial Services Authority.

Further, in March this year, the Banking Code will be revised to reflect the industry' s commitment to consumers on this matter. Ms Knight said: "Our priority has been to find the means of enabling genuinely lost account monies to be transferred for use on community causes while ensuring that customers retain the right to reclaim their account money at any time.

"If you have money in an account, it will always be your property – or if you die it will become part of your estate. This is the case no matter how many years pass."

In August last year, the Treasury Select Committee recommended that banks, building societies and NS&I actively look to reunite customers with dormant funds.

"It is encouraging to see that some providers have already come out in support of the move and are taking steps to match customers with their cash," says Kevin Mountford from price comparison service Moneysupermarket.com HBOS, Nationwide and Yorkshire building societies have already reunited thousands of customers with forgotten savings.

For example, Yorkshire Building Society estimates that accounts holding about £3.5m have not been touched for 15 years or more – but half of these savers that it contacted recently have responded.

While 80 per cent of the affected accounts held less than £10, one lucky – if forgetful – saver benefited to the tune of £14,000. Halifax launched its campaign in March last year, and has already reunited customers with £14.4m of the £44m held in its dormant banking and savings accounts back then.

Halifax signed up to Experian's Unclaimed Assets Register (UAR) – a database which attempts to reestablish contact between owners of dormant accounts and their money – to begin the search for the remaining "lost" customers.

"Any attempt to match savers with their forgotten funds should be applauded," says Mr Mountford.

"The issue of dormant accounts has taken a while to come to fruition, but is very welcome. We would now like to see the move to actively reunite customers with dormant funds extended to dormant money in shares, pensions and investments."

HOW TO TRACE FORGOTTEN FUNDS

You can trace the combined records of members of the British Banker' s Association (BBA), the Building Societies Association (BSA) and National Savings & Investments (NS&I) at www.mylostaccount.org.uk

If you do not have access to the internet, try the BBA on 020 7216 8909, the BSA on 020 7437 0655 or NS&I on 0845 964 5000.

It is a good idea to have a note of old addresses where you lived when you held accounts that may still contain forgotten funds.

If you have an old passbook, this can make the process easier. The more information you can provide, the better.

A further option for those who have lost track of life policies, pension funds and other investments is the Unclaimed Assets Register run by Experian. For a fixed fee of £18 per search, the UAR uses your name, date of birth and address history to conduct a search.

Case study: 'the process was quick'

Rachel Magnani, 39, from Bramcote, Nottingham, was glad she turned to the NS&I tracing service after losing her premium bonds. She was successfully reunited with them just a few weeks later.

Rachel was given the premium bonds by her mother, Geraldine Stone, who is now in her 70s.

"I am one of four children, and we all received premium bonds when we were young as mum wanted us to have them as an investment for the future," says Rachel, who works as a senior manager in a hospital.

"But she moved house several times, and on one of these occasions, forgot to notify NS&I of the change of address. As a result, we lost track of the bonds."

It was not until Geraldine bought premium bonds for Rachel' s 11-year-old daughter, Sophie, as a birthday present, that Rachel remembered she had some of her own.

"Sophie was lucky to have a win of about £500, and this prompted me to set about finding my bonds," she says. "When I logged on to the NS&I website, I found out about the tracing service and filled in the online form."

She then received online notification – as well as a phone call – from NS&I to inform her that the request had been lodged.

"NS&I told me the search could take a couple of months, but within weeks they had tracked down all my premium bonds and sent me copies of all the certificates," she says. "The process was extremely quick and efficient and my brother is now going to do a search too."