diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/domain/SavingsAccount.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/domain/SavingsAccount.java
index ae41f96f1..713af76da 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/domain/SavingsAccount.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/domain/SavingsAccount.java
@@ -358,6 +358,14 @@ public class SavingsAccount extends AbstractPersistable<Long> {
         return SavingsAccountStatusType.fromInt(this.status).isApproved();
     }
 
+    public boolean isActivated() {
+        boolean isActive = false;
+        if (this.activatedOnDate != null) {
+            isActive = true;
+        }
+        return isActive;
+    }
+
     public boolean isClosed() {
         return SavingsAccountStatusType.fromInt(this.status).isClosed();
     }
diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/transfer/service/TransferWritePlatformServiceJpaRepositoryImpl.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/transfer/service/TransferWritePlatformServiceJpaRepositoryImpl.java
index 6c5429ade..8a8517ecb 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/transfer/service/TransferWritePlatformServiceJpaRepositoryImpl.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/transfer/service/TransferWritePlatformServiceJpaRepositoryImpl.java
@@ -396,7 +396,7 @@ public class TransferWritePlatformServiceJpaRepositoryImpl implements TransferWr
         if (this.savingsAccountRepository.doNonClosedSavingAccountsExistForClient(client.getId())) {
             // get each individual saving account for the client
             for (final SavingsAccount savingsAccount : this.savingsAccountRepository.findSavingAccountByClientId(client.getId())) {
-                if (!savingsAccount.isClosed()) {
+                if (savingsAccount.isActivated() && !savingsAccount.isClosed()) {
                     switch (transferEventType) {
                         case ACCEPTANCE:
                             this.savingsAccountWritePlatformService.acceptSavingsTransfer(savingsAccount.getId(),