Billions of euros are lying dormant in so-called forgotten bank accounts across Germany, with heirs unaware and no central register in place. Banks and politicians are debating who should ultimately control the money, as the country faces budget cuts.
A 2021 report from Germany's Research Ministry estimated up to €4.2 billion ($4.9 billion) in such accounts, while other estimates go as high as €9 billion. Banks themselves have not released any figures.
As people age, hold multiple accounts, or die, relatives and heirs struggle to identify accounts. Online banking, with no paper statements, makes it harder as information is locked in emails or hard drives. Non-traditional assets like cryptocurrencies add to the problem.
Germany has no official definition of abandoned accounts, and they can remain inactive for years. The lack of a legal framework leaves the matter to banks, which have little incentive to search for owners. Strict data protection rules also hinder efforts.
In Germany, dormant accounts do not become bank property or revert to the state. Banks must keep them indefinitely, and ownership never expires. The government can only claim an account if declared heir under inheritance law.
Beatrice Eisenschmidt, board member of VDEE, an association of professional heir finders, says a central dormant account register is urgently needed. Currently, inquiries must be sent to various banking associations, a time-consuming and costly process. Many heirs give up.
Former North Rhine-Westphalia finance minister Norbert Walter-Borjans estimated about €2 billion in dormant accounts and called for a national registry. Chancellor Friedrich Merz's government has drafted legislation for a central online register, but it has not been passed yet.
A survey by SOS Children's Villages found 86% of respondents want forgotten bank assets to go into a fund for social projects after a reasonable time, 8% to the government, and 2% to banks. The UK, Ireland, US, France, and Switzerland have different rules and timeframes for handling such accounts.
Source: www.dw.com