Reply #4: Hope this clears up your questions for you...

[A HERETIC I AM]

Why would the account not be valid?

The primary reason I think it is possible the account is no longer valid would be because fees have eaten up the principal. If the original deposit was small, say $1000 or less and the bank did not roll the money into a new CD after the 1st four year note, then the cash was likely deposited in a demand deposit account. Many demand deposit accounts have quarterly or annual fees and if there is no activity (money added, for instance), over time these fees could have completely chipped away at the principal amount. It is also possible that if the bank lost all contact with your parents then they would classify the account as abandoned and simply close it and keep the money. I think the latter is unlikely unless it was a really small amount to begin with. Did your parents receive regular statements on this account? It is highly unlikely that the bank would not have sent them any correspondence at all over the years. They would have at least gotten an annual statement.

And what is a Demand deposit?

A demand deposit account is pretty much like it sounds; The money is available "on demand", in other words, there are no limitations on how much of the balance you can access at any time. Checking accounts are Demand deposit accounts. So are most regular savings accounts. CD's and certain other interest bearing accounts are "Time deposit" accounts, meaning they come with an agreement at the beginning that says the deposit will be left with the bank for a specific period of time (like a CD) and that access to the money before the maturity date will result in penalties.

They remember closing out their account but this is like a Receipt" looking check like thing that has a place on the back that one signs to take their money out.

If they indeed closed the account, meaning they waited the four years (or however long) and then took the entire principal and interest payments and left the bank with it, then the account is no longer valid. There is nothing there. That is what you need to find out for sure. Is there any money in that bank under your parents name.

It says they had to wait 48 months before withdrawing but I would think it would have had to be turned in and signed????? I am soooo stupid.

You're not stupid. Again, it is important to know whether or not they did indeed close the account way back when. The fact that you have that piece of paper with no signature is not proof the account is still valid. They may have gotten several of those slips when they opened the account. This proves the value of keeping records orderly and using a shredder when needed!

I live nearly 2 hours away and I know my folks are going to have a hard time dealing with this. Do you think it is a good idea to see if we can do a three way on the phone?

Yes. If you can conference call the bank with either your mom or dad (or both) on the phone with one of the managers at the bank, that would be fine. The bank should be more than willing to speak with you as long as they hear your mom or dad say it is alright for you to be a part of the conversation.

Or maybe that they just call and ask basically if something is there and then we go down and meet with the banker if there is something there?

Are both your parents still in control of their mental faculties? If so, then sure, they can make the call, find out if the account is valid, what the balance is and then you can go from there. If they are getting forgetful and you are worried they might not ask the right questions, try and do the conference call.

Crap. Life is getting so complicated with them.

It doesn't get any easier, either. Trust me. My mom is 82 years old and while she is still pretty sharp, she gets confused on financial matters and just leaves the larger questions to me. She can still balance her checkbook and all that OK, but some things she needs help with and as time goes on, I'm sure those things will increase.

Ya gotta love em'. They love you! Not to mention changed your dirty drawers when you were still pooping yourself!!!

Hope that helps.