Account Hold
Barron's Banking Dictionary:
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Account Hold
1. Check Hold or the number of days that a bank can legally hold uncollected balances before giving customers use of those funds. Beginning in 1990, the Expedited Funds Availability Act accelerated the Availability Schedule by requiring banks to make the first $100 available for withdrawal at the opening of business the day after funds are deposited, with remaining funds available on the second day after deposit if drawn on local banks and within five days if drawn on nonlocal banks. See also Local Check; Regulation Cc.
2. Notation limiting an account owner's access to his or her funds, as when a savings account is used as collateral for a loan.
Investopedia Financial Dictionary:
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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 Says:
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.
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Copyrights:
Barron's Banking Dictionary
Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.
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Mentioned in
Availability Schedule
(in banking)
Deceased Account
(in banking)
Savings Account Loan
(in banking)
Secured Credit Card
(in banking)
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