What Is an Account Hold?

An account hold restricts an account holder from accessing funds. Wh🧔en a financial institution places an a𒁏ccount on hold, it may do so to protect the customer and the bank from a potential loss. A hold may last a few days, but its duration depends on the reason.

Reasons for an Account Hold

• A deposit of a large check, an out-of-state check, or a foreign check may trigger an account hold.
• New accounts are typically subject to holds on initial deposits.
• Funds pledged as 澳洲幸运5官方开奖结果体彩网:collateral for a loan may be temporarily placed on hold
• A bank may temporarily block the use of funds to investigate suspicious activity or identity theft.

Account Hold vs. Account Freeze

An account hold is similar to an account freeze, where a financial institution pre𒀰vents specific activity on an account. A hold is commonly a temporary delay in making funds available, like when a check is deposited. The bank delays access to the money, even though those funds appear in the account.

Account freezes 澳洲幸运5官方开奖结🐭果体彩网:prevent transaꩵctions from going through on a bank or brokerage account. Account freezes can be put in place by an account holder in the event of a lost or stolen debit card or by the bank or regulatory authority when suspicious activity occurs on the account.

The Bottom Line

An account hold prevents access or restricts transactions from occurring. The Expedited Funds Availability Act requires banks to disclose their hold policies. A deposit of an out-of-state check or suspicious activity may triggಞer an account hold.