Definition of active account

1. checking or savings account with deposits or withdrawals listed in account statements for a specified period. Bank service charges are often determined on the basis of account activity. Assets in bank accounts inactive for five years or longer may be subject to escheat procedures and revert to state ownership.
2. credit card account showing new charges or an outstanding balance in the most recent billing period.

account at a bank or brokerage firm in which there are many transactions. An active banking account may generate more fees for each check written or ATM transaction completed. An active brokerage account will generate more commission revenue for the brokerage firm than an inactive account. Banks usually impose minimum charges for maintaining a checking and savings account. Many brokerage firms levy a fee if an account does not generate a high enough level of activity. If there is no activity in an account for five years or more, the account may be subject to escheat procedures in which the account's assets revert to the state.