How Long Does it Take to Unfreeze a Bank Account? - Plans Papa (2024)

Freezing your bank account is a way of protecting your money. Many people do this before they go on vacation or for other reasons. However, there may be instances where you need to unfreeze your account and the banks can’t do it. This is when it is crucial to know how long it takes to unfreeze a bank account. Here’s how to unfreeze an account and what the timeframe might be.

Reason for Freezing your Account

It can be a good idea to freeze your account when you’re going on vacation or for other reasons. This prevents someone from withdrawing money from your account and it stops creditors from trying to collect what you owe. It is a safe method that most people use when they go abroad and never want to use credit cards or online payments.

There are some reasons that can freeze your bank account for a long time. You can use its tips to solve the issue and unfreeze your accounts ASAP.

There are 3 reasons that freeze bank accounts.

1) Suspicious Login:

This is a common issue with many account holders who use online banking through the web and banking apps. When someone tries to access your account from a new IP and new device, The bank suddenly detects it and freezes your account.

If your account password is known to the case, then it is a very dangerous thing for you. The bank maintains full security on its behalf so that the money of the account holders is safe in the bank. But if an unknown person will log in to your account from a new IP and from a new device, then your account will be suspended for some time.

Enable Suspicious Activity Account

Such cases cannot be called freeze but are called account suspension which is fixed within some hours. Every bank has different policies and some banks do not activate the account in such a situation until the account holder calls from their registered number or changes the login and password of the account.

If your account is blocked due to an incorrect password or suspicious activity, it will be back to normal within 12 hours. If your account is not normalized within 12 hours, you need to visit your bank or get the problem resolved on call.

2) Suspicious Transactions:

Many times it happens that the money gets transferred to your account from the wrong person’s account or a large amount of money gets transferred to your account. Banks often freeze people’s accounts for the same reasons to track down who sent the money.

A law is made by the government which applies to every person. Banks freeze accounts to prevent corruption, fraud and other crimes such as money laundering. They then call the account holder and inquire about the amount received or sent.

Unfreeze Suspicious Transactions Account

Contact your bank and check the transaction history. After showing all the proofs, the bank will unfreeze your account when they trust you.

3)Legal Action Against You

If you borrow money from a company that you don’t repay, the system defaults you. After that, all your bank accounts are frozen. Most of the big companies you borrow from can take legal action against you in court. Your accounts will remain frozen until you pay the full amount to the company.

How to Unfreeze a Default Account:

You have to go to the bank and solve your problem.

When you buy something on a credit card and you don’t pay it back, the credit card companies take action against you. Repay the amount to the company to delete your name from the default list or unfreeze your account.

4) The account is not in Use

Many people are facing this difficulty because they did not use a bank account for a long time. In the USA, more than 28% of people were involved in this issue. Every bank has different rules and policies so, this will depends on whether your bank will you able to open your freezer account or not.

Unfreeze Not in Use Bank Account:

You can deposit a small amount into your bank account to unfreeze if it was frozen due to non-in-use or zero balance. Depositing money into your frozen account will resolve your issue. For more information, you can contact your bank.

How Long Does it Take to Unfreeze a Bank Account?

It typically takes around three business days for an account to be unfrozen. This should be more than enough time for your needs, but if it’s not, you can always contact the bank and see if they can speed up the process.

When you freeze your account, the bank will place a hold on it. This means that no one can withdraw money from your account. The process of unfreezing the account is the same as when you freeze it. You need to contact the bank and indicate that you would like to unfreeze the account.

How long does this process take?

It depends on which bank you go through and what method of contact you use. For example, if you were to call the phone number of your bank and request an instant “thaw” of your account, they might be able to do this for you in a matter of minutes or hours.

Other banks may require up to two business days for this type of request to be processed. Regardless, it’s best to plan ahead so that your frozen funds will not be inaccessible when needed!

Conclusion

Freezing or unfreezing a bank account is one of the quickest and simplest ways to protect your money. But, how do you know when it’s time to freeze an account? Figuring out when and how to freeze and unfreeze a bank account is a delicate balance that only you can determine.

For example, if you like to withdraw money from your account frequently, it may make sense for you to freeze your account until it’s time to pay your bills. On the other hand, if you get paid once a month and get your money out of the bank right away, it may make sense for you to unfreeze your account after each transaction.