Nothing is more aggravating than trying to use your debit card at a store only to find out that there is a hold on your bank account. Creditors, government agencies and even the bank itself may place a hold on the funds in your account. If you wrote any checks before the hold, they may be returned for non-sufficient funds and your bank may deduct NSF fees from any remaining money in your account.
Many banks place a hold on part of any check deposit to ensure that the funds are actually available before you can withdraw them from your account. In 2015, federal law requires the bank to make at least $100 of the deposit available immediately, unless you have recently opened your account. For the first 30 days after opening a new account, the entire amount of the deposit may be held.
If you are not going to be using your account for a specific time period, you can ask the bank to place a voluntary hold on the funds. This prevents any fraudulent withdrawals or purchases from occurring during that time. Frequent travelers often use this option to protect their local accounts while they are away and unable to monitor the daily activity for unauthorized use.
The Internal Revenue Service may place a hold on your bank account if you owe back taxes. Law enforcement agencies may freeze your funds if you are being investigated for fraud. Your creditors may also be able to place a hold on your account, but they must seek a court judgment first. Certain types of income, such as Social Security benefits and child support payments may not be included in a bank hold.
- Photo Credit The_Light_Painter/iStock/Getty Images
What Does a Hold on a Bank Account Mean?
A hold is a type of status placed on a deposit account at a bank or other financial institution. The hold prevents...
How to Stop My Bank From Putting a Hold on My Account
Having a hold placed on your bank account can be frustrating and disruptive. Holds happen for a variety of reasons, from judgments...
How to Put a Hold on Your Bank Account
You have the option to put a hold on your bank account to block transactions at any time. The most common reason...
Reasons to Freeze Bank Accounts
When a bank freezes your account, many transactions can't go through, including withdrawals and debit transactions. Sometimes you can put money into...
Can They Put Holds on Savings Accounts?
Who Can Put a Hold on Your Bank Account? A number of different parties can put a hold on your bank account,...
Why Do Credit Unions Freeze Accounts?
Credit unions allow members to deposit money into both checking and savings accounts. Like a bank, ... hold on your account. ......
Why Would the IRS Freeze a Bank Account?
The bank levy will only put a hold on the amount of money that is owed. Time Frame. ... (IRS), it can...
How to Get My Bank to Release the Hold on My Account
A hold on a banking account occurs when a bank receives a charge from a debit card or check that has not...
How to Remove a Balance Hold From a Bank Account
Having your bank account on hold, or frozen, can be a result of a newly deposited check, an impending charge or a...
Who Can Put a Lien on Your Bank Account?
Bank account liens can result in losing every dollar you have in a personal bank account. A lien is a legal claim...