Accountants should be aware that a recent announcement from An Post might generate queries and requests from assistance from clients.

An Post has set out its procedures under the Dormant Accounts Act of 2001. The salient points are:

An Post will write to the holders of accounts or investments deemed to be dormant, except where:

• the account or investment balance is less than €100, or
• the account or investment holder has requested that no correspondence be sent, or
• previous correspondence to the account or investment holder has been returned marked ‘gone away’ or ‘not known at this address’.

Where An Post has already been notified that the holder of the account or investment is deceased a letter will be issued in due course to the legal/personal representative.

To prevent an account or investment becoming dormant the account holder/investor must make a transaction which is defined as follows:

For a Post office Savings Bank Deposit Account (Post Office Book) with no transactions since 1 October 1991, a deposit or a withdrawal will prevent the account becoming dormant.

In the case of Savings Bonds, Savings Certificates and Instalment Savings the 15 year period commences at the first maturity point for the investment i.e. on completion of the initial investment term.

The following investments will be considered dormant unless a partial repayment takes place on or before 31 March 2007:

• Savings Bonds (purchased on or before 30 September 1988 with no partial repayments since 1 October 1991)
• Savings Certificates (purchased on or before 30 September 1986 with no partial repayments since 1 October 1991)
• Instalment Savings (where the 12 month savings cycle was completed on or before 30 September 1986 with no partial repayments since 1 October 1991)

Once a transaction is made on or before 31 March 2007 the account or investment will be removed from the dormant list.