Articles on Stock markets

News, Research and Analysis

Help Center
Investment Portfolios
Investment Terminology and Instruments
Technical Analysis and Trading
Cryptocurrencies and Blockchain
Retirement Accounts
Personal FinancePersonal BankingPersonal DebtHome RelatedTax FormsSmall BusinessIncomeInvestmentsIRS Rules and PublicationsPersonal LifeMortgage
Corporate Basics

What is an Account Hold?

An Account Hold is similar to the term Account Freeze, as both imply that transactions have been suspended for an account.

A client’s financial institution might put a hold on his or her account if the individual is suspected of illegal activity, if the account is overdrawn, or if it is requested by a government entity, such as in a lien by the IRS, among other things. This is slightly different than a “freeze” or “moratorium” on the account. In a freeze, all pending transactions will be canceled and no new requests will be honored.

People might have a hold put on their checking account if they overdraw too often, or if they make too large of a cash deposit that needs to be reported. A hold can be placed on their investment account if they have broken the terms of the agreement with their custodial institution or if the institution is waiting on a transaction to clear.

Unlike a freeze, a hold can also refer to limited amount of access to funds or a hold on specific transactions. A hold placed by a bank on an account is only permitted to last a specific amount of time, depending on the reason for the hold.

What is an Account Freeze?
What is Chapter 11?

Keywords: moratorium, collateral, account suspension, frozen account,