How to Unfreeze Your Bank Account in 2025

Having your bank account frozen can be both unsettling and frustrating, but it’s often a measure taken for security reasons or to comply with legal obligations. When your account is frozen, you won’t be able to withdraw money, transfer funds, or make payments using that account. Additionally, any scheduled payments will not be processed. It can, however, still receive incoming payments. 

If you find yourself in this situation, resolving the issue is possible with the right approach.

This guide will help you understand the steps you need to take to unfreeze your bank account, as well as how to prevent it from happening in the future.

Let’s dive in.

To unfreeze your bank account, start by contacting your bank directly to inquire about the reason for the freeze. In some cases, you may have already received a notice detailing why your bank account is frozen, especially if the freeze is related to debt. Once you identify the cause, take the necessary steps to resolve it, such as making a deposit, settling a debt, or verifying your identity.

Below are the common solutions to unfreeze your bank account:

Inactive accounts with no transaction history can raise concerns and incur unnecessary maintenance costs. To mitigate risks, banks may freeze and eventually close such accounts after a period of dormancy.

If this is the case, consider making a small deposit. Certain banks may automatically unfreeze your account upon completing a transaction or initiating an account activity within a specified timeframe.

Alternatively, contact your bank directly to inquire about the necessary steps to unfreeze it. You might be required to provide updated identification and verification documents to confirm your identity and account ownership.

Creditors, such as credit card companies or other lenders can request that the bank put a freeze on your account if you have unpaid debts. Likewise, your account can be frozen by the HMRC due to tax debt. In fact, HMRC's use of Account Freezing Orders (AFOs) and Forfeiture Orders (FOs) has surged by over 170%.

Before your bank freezes your account due to debt, you should typically receive a notice. If the debt is not drastic, consider settling that debt with the creditor. A successful settlement can remove the judgment against you.

However, if settling the debt is not viable, you could file for bankruptcy if necessary.

Filing for bankruptcy will not unfreeze your account but will halt collection actions and suspend wage garnishment.

It's important to note that bankruptcy will prevent you from accessing your funds and can severely impact your credit score and ability to obtain loans for years. Hence, this action should only be taken if it is your last resort.

If you fail to comply with the bank's terms, such as by not providing required documentation or giving inaccurate information (e.g., an incorrect address, false income details, or a false purpose for using the account), the bank may freeze your account for further investigation.

To resolve it, contact the bank promptly with the necessary corrections or documentation, such as an updated address or income details. 

If the bank detects spending that doesn't match your usual patterns, it may suspect unauthorised access, scams, or more serious issues like money laundering or fraud.  In either case, your account may be frozen to protect you or to investigate potential crimes.

If the freeze is due to less serious issues, such as unreported international activity or a suspected stolen card, you can usually resolve it by answering security questions or providing proof online, by phone, or in person at the bank.

In more serious cases, like suspected fraud, legal processes are involved, and the resolution will be more complicated.

In the UK, if a bank suspects suspicious activity, it must submit a Suspicious Activity Report (SAR) to the National Crime Agency (NCA). The NCA has one week to decide whether to extend the freeze for up to an additional 31 days, during which time the bank cannot provide any details or reasons to account holders. If illegal activity is suspected, the NCA may request an Account Freezing Order (AFO) from the court, and you will be notified at that stage.

An Account Freezing Order (AFO) is a legal action that prevents an individual from accessing or transferring funds in their bank or building society account. This order is often used to protect assets from misuse or to secure them for potential forfeiture. If an AFO is imposed on your account, you will receive a formal notification outlining the order.

Whether the AFO is issued due to unpaid taxes or suspicion of illicit activity, if you believe it was unjustly applied, you can request that it be varied or set aside in court.

It is strongly advised to seek legal counsel and a solicitor if you find yourself in this situation.

The duration of a bank account freeze depends on the circumstances. There is no set time limit for how long a bank can keep an account frozen.

The time it takes to unfreeze an account also varies. For simple misunderstandings, the issue may be investigated and resolved within 7-10 days, while more complex scenarios could take 30 days or longer. In cases where the freeze is due to tax obligations or legal disputes, there's no set time limit.

If you don't address the freeze, it will remain frozen until the matter is resolved, and in some cases, the account may be closed.

In the UK specifically, an Account Freezing Order (AFO) can last for up to two years. However, if you believe the order was unjustly imposed, you may apply to the court to have it varied or lifted during this time. It is recommended to seek legal advice to manage this process.

When dealing with a frozen bank account, it’s essential to understand how this differs from other account statuses like suspension or closure. The difference between an account being frozen, suspended, and closed is as follows.

• A frozen account is unavailable until unfrozen, which can and will happen after the issue is resolved.
• A suspension or restriction on an account means that certain limitations are placed on it. This is often used interchangeably with a frozen account. 
• A closed account is permanently shut down and can no longer be reactivated. A bank may close an account without necessarily providing prior notice.

A frozen account can cause a lot of stress and inconvenience. Fortunately, you can take some steps to prevent it.

Here are some tips:

• Pay attention to calls from debt collectors.
• Pay your credit bills on time. If you can’t, contact your creditor and try to work out a payment plan.
• Separate business and personal finance. You may also use different banks for personal and business accounts. 
• Pay attention to your bank statements to ensure there is no fraudulent activity. 
• Consider notifying your bank beforehand if you plan to use the account aboard or planning for a substantial purchase.
• Businesses could consider opening multiple accounts to ensure operations aren't interrupted in case of an account freeze due to factors like a compromised account, account issues, or the bank mistakenly flagging some transactions as unusual. However, this strategy is not meant to protect against freezes related to debt or fraud, as these issues lead to legal actions that should affect all accounts tied to the business.