Final answer:
The account balance remains the same when an account is frozen, but the account holder's access to the funds is restricted.
Step-by-step explanation:
When a financial account is frozen, it means that the account holder cannot conduct certain transactions. This can involve withdrawing money, transferring funds, or using the account to make payments. The account balance of a frozen account remains unaffected in terms of the total amount of money in the account. However, the accountholder's access to these funds is restricted until the freeze is lifted.
Banks or financial institutions may freeze an account for several reasons. They may do so in response to a court order, due to suspicious activity which could indicate fraud, or if the account holder has unpaid debts that they have been ordered to settle.
When an account is frozen, any deposits, such as paychecks, can still go through and increase the balance, but typically no withdrawals or other outgoing transactions can be made. Over time, if the account continues to receive deposits while it is frozen, the balance will continue to rise. However, the account holder is unable to use these additional funds until the account is no longer frozen.
It is important to note that while the balance may not change due to the freeze itself, the account may still be subject to any usual fees or charges that are part of the account agreement. Also, any disputes or legal proceedings that resulted in the freezing of the account will have to be resolved before the freeze is lifted.