What happens when a bank account is frozen?

RG2015

People frequently talk about bank accounts being frozen, and it is recommended to have backup bank accounts to ensure that there is always access to funds.

My question concerns regular payments such as standing orders and direct debits. Are these frozen as well?

Archie_Duke

RG2015 said:

People frequently talk about bank accounts being frozen, and it is recommended to have backup bank accounts to ensure that there is always access to funds.

My question concerns regular payments such as standing orders and direct debits. Are these frozen as well?

Yes, no money will be moved in or out.

RG2015

Archie_Duke said:

RG2015 said:

People frequently talk about bank accounts being frozen, and it is recommended to have backup bank accounts to ensure that there is always access to funds.

My question concerns regular payments such as standing orders and direct debits. Are these frozen as well?

Yes, no money will be moved in or out.

Hence, the backup account needs to have the funds to pay any regular payments manually in addition to any day to day requirements.

I guess someone would need 2 months worth of expenses without access to any income streams.

That is quite a scary thought. 

Daliah

RG2015 said:

Archie_Duke said:

RG2015 said:

People frequently talk about bank accounts being frozen, and it is recommended to have backup bank accounts to ensure that there is always access to funds.

My question concerns regular payments such as standing orders and direct debits. Are these frozen as well?

Yes, no money will be moved in or out.

Hence, the backup account needs to have the funds to pay any regular payments manually in addition to any day to day requirements.

I guess someone would need 2 months worth of expenses without access to any income streams.

That is quite a scary thought. 

That's one of the reasons people are recommended to have an emergency fund of at least 6 months worth of cost of living; preferably not with the same bank they have they 'main' current account with. I realise that not everybody is able to have such a buffer, but then I also realise that most people don't get their accounts frozen.

MattMattMattUK

Daliah said:

RG2015 said:

Archie_Duke said:

RG2015 said:

People frequently talk about bank accounts being frozen, and it is recommended to have backup bank accounts to ensure that there is always access to funds.

My question concerns regular payments such as standing orders and direct debits. Are these frozen as well?

Yes, no money will be moved in or out.

Hence, the backup account needs to have the funds to pay any regular payments manually in addition to any day to day requirements.

I guess someone would need 2 months worth of expenses without access to any income streams.

That is quite a scary thought. 

That's one of the reasons people are recommended to have an emergency fund of at least 6 months worth of cost of living; preferably not with the same bank they have they 'main' current account with. I realise that not everybody is able to have such a buffer, but then I also realise that most people don't get their accounts frozen.

Exactly that, I only know one person who had their bank account frozen (and ultimately closed) and that was because they allowed their account to be used by other people for money transfers because they are an idiot. Cards stopped yes, online locked temporally due to too many attempts to log in, even told to go to a bank branch with ID, but never frozen.

kaMelo

RG2015 said:

Archie_Duke said:

RG2015 said:

People frequently talk about bank accounts being frozen, and it is recommended to have backup bank accounts to ensure that there is always access to funds.

My question concerns regular payments such as standing orders and direct debits. Are these frozen as well?

Yes, no money will be moved in or out.

Hence, the backup account needs to have the funds to pay any regular payments manually in addition to any day to day requirements.

I guess someone would need 2 months worth of expenses without access to any income streams.

That is quite a scary thought. 

Even though an account may be frozen they don't expect you to live on fresh air. A bank will release salary/wages/benefits paid into a frozen account once you have provided proof of such.

Thrugelmir

Bank accounts generally get closed for breaching the account terms and conditions. The average person has no need to be concerned. 

cymruchris

Thrugelmir said:

Bank accounts generally get closed for breaching the account terms and conditions. The average person has no need to be concerned. 

Sometimes the average person doesn't read the terms and conditions though, and puts a little too much ebay business through their personal account and it gets closed for misuse of facilities. There are plenty of examples of average people here having their accounts closed for not understanding the difference between personal and business banking - especially as the lines are blurred these days with online sales through ebay and etsy etc. 

It's definitely worth having more than one account with more than one banking group - and keeping some funds in both.