Frozen Account

What is a 'Frozen Account'

A frozen account is an account to which no withdrawals or purchases can be charged. This usually occurs when the account holder fails to pay promptly for purchases charged to the account. For example, cash accounts are frozen for 90 days until the full purchase price of the intended order is paid in full.

BREAKING DOWN 'Frozen Account'

In other words, when your bank account is frozen, it's because you owe money to someone. Any creditor that has a judgment against you can have your bank account frozen. The creditor can actually freeze your account for up to twice the amount you owe. If you receive a notice from your bank stating that your account has been frozen, look for the lawyer and phone number that is listed on the notice. If you didn't receive a notice after your account was frozen, call your bank and ask for the lawyer's name and phone number so you can settle the account.

RELATED TERMS
  1. Account Freeze

    An action taken by a bank or brokerage that prevents any transactions ...
  2. Blocked Account

    An account that is subject to foreign exchange controls in a ...
  3. Chart Of Accounts

    A listing of each account a company owns, along with the account ...
  4. Money Market Account

    An interest-bearing account that typically pays a higher interest ...
  5. Account History

    All activity within an account, usually since inception. In a ...
  6. Linked Savings Account

    Any type of bank savings account that is linked by account number ...
Related Articles
  1. Insurance

    Your First Checking Account

    This owner's manual will show you what to expect from your bank.
  2. Investing Basics

    What Is A Trading Account?

    A trading account enables an investor to buy and sell securities.
  3. Options & Futures

    Demystification Of Bank Accounts

    Find out which type of account suits your specific needs.
  4. Savings

    Explaining Checking Accounts

    A checking account is an account at a financial institution, usually a bank, that allows for deposits and withdrawals.
  5. Options & Futures

    How To Break Up With Your Bank

    Whether you're moving or have just found a better no-fee plan, find out how to switch banks with ease.
  6. Savings

    Banking: Managing Your Checking Account

    By Amy FontinelleBecause your checking account is the nexus of all your banking activity - the main place that your money flows in and out of - you'll need to do a few things to keep an eye on ...
  7. Savings

    Find the Best Savings Account Rates

    You know how to spot the highest interest rate, but how do you really get the best deal on savings accounts?
  8. Savings

    Banking: Savings Accounts 101

    By Amy FontinelleAfter checking accounts, the next biggest thing most people think about when they think about banking is savings accounts. Having a savings account somewhere to store extra cash ...
  9. Insurance

    Bag The Best Bank Account

    Take advantage of the deals banks offer, and find the right account for your financial situation.
  10. Budgeting

    Protect Your Savings From Their Greatest Threat - You

    Watch your savings magically grow as you make withdrawals a headache and deposits a breeze.
RELATED FAQS
  1. If a person's account is frozen, which of the following activities is allowed ... ...

    The correct answer is a A frozen account does not mean that the person can not trade, it means that transactions must be ... Read Answer >>
  2. What does it mean if my 401(k) plan has been frozen?

    Learn why 401(k) plans often are "frozen" during a merger and what it means to you. Frozen accounts cannot process new contributions ... Read Answer >>
  3. What does it mean when the shares in my account have been liquidated?

    An account liquidation occurs when the holdings of an account are sold off by the firm in which the account was created. ... Read Answer >>
  4. What US banks offer free checking accounts?

    Quit wasting money on monthly fees associated with your checking account and get a free checking account from reputable national ... Read Answer >>
  5. How do you calculate payback period using Excel?

    Understand the various fees that can be assessed on a personal or business checking account, and learn methods to avoid being ... Read Answer >>
  6. When looking at my online broker account, I see an account value, cash value and ...

    When looking at some online brokerage accounts, there are a few figures that may be confusing, including account value, cash ... Read Answer >>
Hot Definitions
  1. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  2. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  5. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  6. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
Trading Center