What to do if a neo bank freezes or closes your account

If a neo bank freezes your account, follow the in-app instructions and send the documents it asks for as quickly as you can: most restrictions are reviews, not closures. If the bank decides to close the account, UK and EU rules usually require advance notice, and you can complain to the bank and then to an independent ombudsman for free.

Freeze or closure: what is the difference?

A restriction (often called a freeze or block) is temporary. Revolut, for example, says that while an account is restricted you may be unable to make payments, send or receive transfers or withdraw money, but you can still contact support and upload documents.

A closure ends your contract with the bank. You will need to move your salary, direct debits and card payments elsewhere, and claim back any remaining balance.

Why accounts get restricted or closed

Banks and e-money firms must check who their customers are and watch for fraud and money laundering. Revolut lists three main reasons for restricting an account:

• protecting customers from fraud, for example suspicious logins or irregular transactions;
• legal and regulatory duties, such as anti-money laundering (AML) and "know your customer" (KYC) checks, court orders or requests from authorities to freeze funds;
• a suspected breach of its terms or misuse of its products.

Revolut's help centre adds that accounts may be closed for reasons such as suspected fraud, not providing requested information, giving false information, or serious or persistent breaches of its terms.

What to do if your account is frozen

1. Read every message in the app and in your email. The bank usually tells you what it needs.
2. Send clear, valid, up-to-date documents. Revolut may ask for a current ID, proof of address, information about where your money comes from (source of funds) or details of specific transactions.
3. Answer quickly and completely. Revolut says it aims to lift restrictions within 3 hours of receiving all the information it needs, but cases involving other banks or regulators can take longer.
4. Do not expect chat support to unblock you. Revolut notes that its support agents can answer questions but cannot lift restrictions themselves.
5. Accept that you may not hear the exact reason. Banks are sometimes not allowed to explain, for example during an investigation.

While you wait, use another account for essential payments: a second account with a different provider means you are never left without access to money. See how to choose a neo bank for what to check.

How much notice must the bank give before closing?

The rules depend on where the provider is regulated.

Under PSD2, regular charges you have paid in advance must be refunded proportionally when the contract ends.

The UK rules also list cases where the bank does not have to give notice, for example when it cannot complete customer due diligence, has reasonable grounds to suspect serious crime, or is required to close the account by the FCA, the Treasury or the Secretary of State.

In practice, providers may give more than the minimum. Revolut's help centre, for example, says it contacts customers through the app and by email at least two months before taking action on an account and sends the reason to the email address on file.

Getting your money back

If your account is closed, ask the bank how it will return your balance. Monzo, for example, explains that former customers with money left in a closed account can log in, verify their identity with a short video and a photo of their ID, and give details of another UK account to receive the money. Monzo says it adds interest at the Bank of England base rate plus 1%.

If authorities have asked the bank to freeze funds, or a court order applies, the money may not be released straight away. If you are unsure whether your money is covered by deposit protection, read is my money safe in a neo bank?.

How to complain

Always complain to the provider first, in writing, and say what you want it to do.

In the UK

Banks have up to 8 weeks for most complaints, but only 15 days for complaints about payment services and electronic money. If you are unhappy with the final response, or you get no reply in time, you can take the complaint to the Financial Ombudsman Service within 6 months of the final response. The service is free.

In the EU

Each country has its own out-of-court complaint body, and the provider's terms should name the one that applies. In the EEA, for example, Revolut is provided by Revolut Bank UAB, a Lithuanian bank. In Lithuania you must complain to the provider within three months of becoming aware of the problem; the provider must reply within 15 working days (35 in exceptional cases), and you can then apply to the Bank of Lithuania within one year of your complaint to the provider. The Bank of Lithuania handles disputes free of charge, and its decision is a non-binding recommendation.

If the provider is based in another EEA country, FIN-NET, a network of 67 national complaint bodies in 31 countries set up by the European Commission, helps consumers find the right body for cross-border disputes.

In short

Respond fast to document requests, keep a second account, ask for the closure notice and reasons in writing, and use the free ombudsman route if the bank's answer does not resolve things. Compare providers on our UK comparison or see all providers, and read more about Revolut and Monzo.

This guide is general information, not legal advice.

Sources

• Revolut: Why does Revolut restrict accounts?
• Revolut Help: Why was my account closed?
• Monzo Help: Why have I received an email about a refund from my closed account?
• legislation.gov.uk: The Payment Services and Payment Accounts (Contract Termination) (Amendment) Regulations 2025
• EUR-Lex: Directive (EU) 2015/2366 on payment services (PSD2)
• Financial Ombudsman Service: How to complain
• Bank of Lithuania: Steps to settle a dispute with a financial services provider
• European Commission: About FIN-NET

Prices and features checked on 26 October 2026.

This guide is general information, not financial advice. Fees, features and availability change, so check the provider's own website before you apply. Read how we compare providers and our affiliate disclosure.