Some years ago, I opened a saving account with a higher interest rate for the proverbial rainy day. I haven’t used that account much for some time but received a letter from that bank  that I wanted to share.

Threatening feel

Threatening people’s savings doesn’t create a good impression

With opening words ‘Inactive account’, the letter launched with a long paragraph about money in inactive accounts being transferred to ASIC. The paragraph ended with a ‘by the way, the Government recently changed the inactivity period to 3 years from 7 years’ message.

It went on to define in active accounts.

Followed by a sub-heading “Your inactive xyz account”.

At this point I was angry because I hadn’t been told about the change in law nor that my money would be transferred to ASIC so “how dare they do that”.

The letter then mentioned I could prevent the transfer by using my account before the end of January.

Why not tell me that first as it is actually the most important thing for me to know?

And encouraging me to make another deposit is surely in the bank’s best interests, too?

Why let me get angry and annoyed rather than show me they are trying to help my keep my money?

The harsh letter made me uncomfortable, and as I only had a small amount of money left in there, my response was to withdraw all my money and close the account myself.

This is obviously a necessary letter for banks, but I think they are missing a relationship building and marketing opportunity to write it in such harsh terms.

Even if most people still closed their accounts, they would do so without negative feelings towards that bank…

It could have been personable and helpful

Being friendly builds goodwill and reduces stress

In contrast I recently wrote a letter for a client along similar lines.

That letter effectively read:

You haven’t made a contribution for some time so your account is about to be classed as inactive.

If you make a contribution by xx, your account will be reactivated. Otherwise, your account will have to be closed.

Another option would have been  to write:

Did you know that any account without transactions for 3 years are classed as inactive? And that we have to transfer money in inactive accounts to ASIC?

To avoid this for your account, please make a deposit or withdrawal by xx.

Or they could have focussed on the change in law as important news:

Did you know it’s been nearly three years since you used your account?

The Commonwealth Government recently changes the law so accounts are classed as inactive after 3 years rather than seven. That means your account could soon be classed as inactive.

By law, we must transfer money from inactive accounts to ASIC.

Of course, you can reactivate your account by making a deposit or withdrawal before xxx.

Which version would you prefer to receive?