Why Is My Bank Account Frozen?

A bank account freeze means you can't take or transfer money out of the account. Bank accounts are typically frozen for suspected illegal activity, a creditor seeking payment, or by government request. A frozen account may also be a sign that you've been a victim of identity theft. Each situation requires specific actions to unfreeze the account. Here's more on why a bank account may be frozen—but read your bank's deposit agreement to find out your how your bank freeze rules work.Key TakeawaysYou can still receive deposits into frozen bank accounts, but withdrawals and transfers are not permitted.Banks may freeze bank accounts if they suspect illegal activity such as money laundering, terrorist financing, or writing bad checks.Creditors can seek judgment against you, which can lead a bank to freeze your account.The government can request an account freeze for any unpaid taxes or student loans.Check with your bank or an attorney on how to lift the freeze. What Is a Frozen Account? It ca...