Last updated on October 26, 2025
No. European banks are not allowed to charge inactivity fees on dormant accounts without notifying the customer. EU law requires banks to disclose all fees clearly and communicate them through agreed channels before applying any charges, including those related to inactivity.
When Your Account Goes Quiet
It’s easy to forget about a bank account you rarely use. Maybe it’s a savings account from a previous job, or a student account that’s been sitting idle for years. But while you’re not looking, your balance might be shrinking—not from spending, but from inactivity fees. Can banks in Europe really charge these fees without telling you?
The answer is no. European banking regulations require transparency and customer notification before any fees are applied, including those for inactivity.
Transparency Is the Rule
Under the EU’s Payment Accounts Directive (Directive 2014/92/EU), banks must provide customers with a fee information document before opening an account. This document outlines all potential charges, including inactivity fees. Additionally, banks are required to send a statement of fees at least once a year, detailing all costs incurred.
This means that inactivity fees cannot be introduced or applied silently. Banks must notify customers through agreed communication channels—letters, emails, or secure online messages. If a customer ignores these notifications, the bank is still considered compliant, as long as the notice was properly sent.
From Dormant to Disappeared
If an account remains inactive for a long period—typically five years or more—it may be classified as dormant. At this point, the situation becomes more serious. In several EU countries, dormant accounts are subject to special procedures that can result in the funds being transferred to a government-managed account.
Although there is no single EU-wide law governing dormant account transfers, the European Central Bank has issued opinions supporting national legislation that allows dormant funds to be transferred to the state after a defined period. These transfers are typically preceded by multiple notifications to the account holder or their legal heirs. If no response is received, the funds may be moved to a public account, where they remain claimable under specific conditions.
Why Fees Exist—and What You Can Do
Inactivity fees are designed to offset the administrative costs of maintaining dormant accounts. While not all banks charge them, those that do must follow strict rules. Customers can avoid these fees by making occasional transactions, updating contact information, or simply logging into their account periodically.
If you suspect your account has been charged unfairly, you can request a fee breakdown from your bank. If the bank fails to provide proper documentation or notification, you may have grounds to file a complaint with your national financial regulator.
See more on European Union
Sources
Directive 2014/92/EU on payment account fees and transparency
https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32014L0092
Ongoing
Opinion of the European Central Bank on dormant deposit accounts
https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52013AB0020
Published Mar 19, 2013