Question

What does it mean to freeze bank accounts?

Answer 1

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An account freeze is an action taken by a bank or brokerage that prevents any transactions from occurring in the account. Typically, any open transactions will be canceled, and checks presented on a frozen account will not be honored.

Account freezes can also be initiated by either an account holder or a third party. Many banks and credit card providers are now offering a bevy of online and mobile banking options including the ability to freeze an account with the ‘click of a button.’ In the event of a lost or stolen card, a cardholder can quickly “freeze” the account without contacting directly or visiting client service locations in person. Mobile and on-demand banking services are increasingly popular with customers interested in self-service and enhanced cyber security features.

An account freeze more commonly may be known as “freezing an account,” as one might say in general conversation.