Our experts answer readers' banking questions and write unbiased product reviews (here's how we assess banking products). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.
- Your bank account may be put on hold if a bank suspects fraud or if someone else can claim the money.
- If your bank account is frozen, you won't be able to move money out of your account.
- To fix the account, you might need to verify your transaction history or pay back a business.
NEW LOOK
Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview
Thanks for signing up!
Access your favorite topics in a personalized feed while you're on the go.
Advertisem*nt
Financial institutions or businesses may place a hold on your bank account, limiting your ability to access your money.
To help you determine if you have a frozen bank account, we'll provide an overview of why your account may have a hold and what you can do to resolve the issue.
What is a frozen bank account?
When your account is frozen, you may be able to view your account, but you won't be able to move money. Money deposited into your account can't be withdrawn or transferred to other accounts because there's a hold preventing you from making regular transactions.
Advertisem*nt
"If you've got a bankruptcy, or if you've got your wages garnished for a tax thing, or because you owe back child support, certain money in the account can be frozen from the account owner because someone else has a claim on it," explains Bruce Adams, president of the Credit Union League of Connecticut.
Until you fix your account, you won't be able to access any funds.
Why your bank account may have a hold
Either a financial institution or business may place a hold on a bank account. Here are some of the most common reasons why bank account holds occur.
A financial institution suspects fraud
If a financial institution finds strange money patterns happening in a specific account, Adams says a financial institution may suspect fraud.
Advertisem*nt
"Both according to the law and according to the account agreement that the owner signs, they could put a pause on the account to investigate," Adams adds.
An account owner has died
Financial institutions may also freeze a bank account if a bank account owner dies and there isn't a bank account beneficiary or will to provide clarification on where the money should go.
"If somebody comes in wanting to drain the account, the financial institution cannot give them money while they figure it out," says Adams.
A bank will have to go through probate, and it may take months before anyone can access money in the account.
Advertisem*nt
An account owner owes money
A creditor may place a hold on your account if you owe money and haven't kept up with payments.
For example, your bank account may be put on hold if you have significant unpaid debts to a business or government entity.
A financial institution also might place a hold on your account if you have significant bank fees.
"There are overdraft protection products where the institution will say, 'If you bounce a check, we'll pay it and then take it back out of your savings, and there will be a fee on that," says Adams. "But the terms of the account might say if you do it 10 times in a month, we're just going to freeze your account."
Advertisem*nt
How to fix a frozen bank account
First, determine why your bank account is put on hold.
Adams points out your bank account agreement will often specify why a financial institution will put a hold on your account. Many bank account agreements are available online, or you may ask your nearest branch for your account agreement.
Once you've figured out why your bank account is on hold, you could call your bank to see if there's anything that can be done.
You may be able to have your issue resolved quickly, depending on your situation. For example, Adams says if your account was frozen because a bank suspected fraud, you can talk to a banker about your recent transaction history. After providing a receipt or additional information, the financial institution may take off the hold on your account on the same day.
Advertisem*nt
However, if your account is frozen by a creditor or an account owner died, you might need to take additional steps, such as going through probate or bankruptcy. This may take months to resolve.
Banking Reporter
Sophia Acevedo is a banking reporter at Business Insider. Sophia joined Insider in July 2021. She writes bank reviews, banking guides, and banking and savings articles for Personal Finance Insider. She is also a Certified Educator in Personal Finance (CEPF).Sophia is an alumna of California State University Fullerton where she studied journalism and minored in political science. She is based in Southern California.You can reach out to her on Twitter at @sophieacvdo or email sacevedo@insider.com.Read more about how Personal Finance Insider chooses, rates, and covers financial products and services >>Below are links to some of her most popular stories:
- Are banks open today? Here's a list of US bank holidays for 2023
- Best CD rates
- Best High-yield savings accounts
- Four reasons why your debit card might be denied even when you have money
