Account Freeze
Your chair is turned backwards facing the corner, and you're told to sit in it by the bank. It's a time-out for your account. What on earth did you do to deserve this? Were you noisy again during nap time? Accounts get frozen for a variety of reasons, some of which are the fault of the account holder, like they've tried to buy something they couldn't afford, or filled out a given form improperly. But more times than not, a credit card was stolen, or an account was hacked by an angry Russian diplomat, or a product was ordered in eight cities within an hour. How do you unfreeze? Well, usually, you warm things up by just cancelling that credit card, assigning the bank to go after the ne'er do wells, and getting another reload of dough, so you can go shopping.
Related or Semi-related Video
Finance: What is a Coverdell Education S...11 Views
Finance a la shmoop what is a Coverdell education savings account? Coverdell...[Man using a red umbrella]
nope not an umbrella for the farmer in the well what is a Dell anyway? uh no
different Dell remember farmer in the Dell? all right moving on
Coverdell was the senator who named this type of tax deferred savings account and
note it's tax deferred not tax free maybe that is you might put two grand a
year in this account and you don't pay tax on it this year it just gets
invested and it grows just like a 401k account and an IRA and a Roth more or
less but then when you withdraw the money you don't pay tax on it if you use [Cash withdrawn from ATM]
the dough for school that is for like private school fifth grade books and
uniforms or that no athletic scholarship in the Ivy League tuition at Princeton [Man walking towards college building and football hits his head]
Or the iPad app suite from shmoop yeah
you could spend it on us we'd appreciate it thank you if you don't spend the
money on education well then you get taxed in the normal way as if it's
ordinary income there are all kinds of restrictions in this plan like there's a [Restrictions appear]
max of two grand contributed per kid who benefits from it the dough has to be
distributed fully by the time the kid is thirty or go to others in the family for
education and if your family makes too much money like you work too hard you're
too successful well you might have to cover your own Dell yeah so yeah it's a [Man walking along with a Dell laptop]
great option for some and an excellent way to attend the school of your dreams
while temporarily staving off the taxes of your nightmares if you're really lost
or something to spend it on you know think of your friends here at shmoop...
we're happy to take your dough
Up Next
A wrap account is an account that wraps into one annual fee all of the services you'd normally pay for a la carte at a given brokerage.
What Does it Mean to Churn an Account? While the occurrence now is much lower than in the past, brokers who were given limited trading discretion i...
What are Eastern and Western Accounts? The majority of new securities issues are distributed via syndication, where the underwriter of record runs...