Account Hold

AAA

DEFINITION of 'Account Hold'

Deposits that are delayed before being credited to an account, such as deposited checks that are drawn on foreign or out-of-state banks. A hold can also be placed on an entire account if there has been a transaction that must be or has been reported to the authorities as a suspicious transaction under the anti-money laundering regulations, or if there is a suspicion or report of identity theft.

INVESTOPEDIA EXPLAINS 'Account Hold'

An account hold sometimes only refers to specific transactions in an account, but it may also refer to the entire account. It is different from freezing an account, which will happen in the case of the death of the account holder or if government action is pending.

An account hold can last for just a day or two, or for longer, depending on the reason for the hold.

RELATED TERMS
  1. Account

    1. An arrangement by which an organization accepts a customer's ...
  2. Account Balance

    1. The amount of money in a financial repository, such as a checking ...
  3. Checking Account

    A transactional deposit account held at a financial institution ...
  4. Eurocheck

    An alternative to the traveler's check, the Eurocheck was issued ...
  5. Commercial Bank

    A financial institution that provides services, such as accepting ...
  6. Liability

    A company's legal debts or obligations that arise during the ...
Related Articles
  1. Travel Tips For Keeping You And Your ...
    Insurance

    Travel Tips For Keeping You And Your ...

  2. Are Your Bank Deposits Insured?
    Savings

    Are Your Bank Deposits Insured?

  3. The Ins And Outs Of Bank Fees
    Options & Futures

    The Ins And Outs Of Bank Fees

  4. Choose To Beat The Bank
    Options & Futures

    Choose To Beat The Bank

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center