Definition of Account Hold
What does the term "account hold" mean as it applies to the world of banking? What is meant by the term account hold?
In banking, an account hold typically occurs when a deposit is not immediately credited to an account.
For instance, let's say that you walk into your bank to deposit a $10,000 check from a company that is located in another country. Your bank will probably place a "hold" on the check, as they are likely not familiar with the company. The bank does this just in case the check is returned - by placing a hold on the check, the bank can ensure that the check will "clear" before giving you access to the funds.
Holds can range from a day to many business days, depending on the circumstances involved (size of check, origin of check, customer's history with the bank, etc).
A hold can be placed on an entire account if there have been suspicious transactions. This is usually done in cases of identity theft.
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