How Much Cash Can You Deposit at a Bank?

Why Are Banks Required to Report Cash Deposits of More Than $10,000?

Federal law requires banks to report deposits of more than $10,000. No matter where the money came from or why it’s being deposited, your bank must report it by filing a Currency Transaction Report (CTR).

Under the Bank Secrecy Act and the USA PATRIOT Act, the government tracks the money to make sure it isn’t from crimes like money laundering or terrorist activity. The law applies to both single deposits and multiple deposits in a day that add up to more than $10,000.

How Can I Deposit More Than $10,000 in Cash?

The best way to deposit large amounts of cash is to visit a branch in person. It’s safer, and a banker can count the money in front of you in a more private area to ensure you agree on the deposit amount. 

Alex King, former vice president in Trade & Working Capital at Barclays Bank, chartered accountant, and founder of Generation Money, also advised in an email to Investopedia to make sure to use a briefcase or non-transparent and secure bag to make it less obvious that you’re carrying a large amount of cash. He also recommended bringing a valid ID and records showing the source of the cash, such as business invoices or legal documents. 

Businesses sometimes use armored transports for large cash deposits, but they’re available for personal deposits as well. King said armored transports might make sense if you’re depositing at least $50,000. You can ask your bank to arrange them or work with another company. 

“You’ll need to pay a fee which, for a one-off cash deposit, is either a fixed fee or a percentage of the amount of cash you’ll be transporting,” King explained. “Or, if you’re a business owner who needs to regularly deposit large sums of cash, you can sign up for a regular armored transport service where you’ll pay a subscription fee.”

What Happens When Large Deposits Are Reported?

Financial institutions use Currency Transaction Reports to inform the federal government about deposits greater than $10,000. These reports go to the Financial Crimes Enforcement Network (FinCEN).

In most cases, a CTR must be filed for each currency transaction that exceeds $10,000. This includes bank deposits, withdrawals, currency exchanges, payments, and transfers.

Federal law requires financial institutions to gather personal information about the depositor. This might be a Social Security number, driver’s license, or government-issued ID. This information must be obtained whether or not the depositor has an account at the receiving financial institution.

What Is Structuring?

Structuring is when you divide a large deposit into smaller amounts to avoid CTR reporting requirements. It seems innocent enough if your money is from legitimate sources, but it’s still illegal. You could face up to five years in prison and a fine of up to $250,000. These penalties are doubled if you structure more than $100,000 over 12 months or combine structuring with breaking another federal law.

“Even without legal action, banks can still freeze or close accounts if a customer is structuring deposits. This is another reason it’s important to keep good records and have all relevant documentation to show the source of the cash deposits,” advised King.

What Is IRS Form 8300?

IRS Form 8300 is a tax form for businesses to report cash payments of more than $10,000 received in a single transaction. Multiple related transactions totaling more than $10,000 also require businesses to file this form. Cash payments include U.S. or foreign currency and cashier’s checks, bank drafts, traveler’s checks, and money orders with a face value of $10,000 or less.

The Bottom Line

While most banks don’t impose strict limits on cash deposits, some ATMs can only handle a limited number of bills at a time. If you’re not sure about your bank’s limits, it’s worth checking with customer service.

Understanding federal reporting requirements for deposits over $10,000 is crucial. Always deposit large sums safely, either in person at your bank branch or through an armored transport service for very large cash deposits. 

You should also document your cash source and avoid structuring deposits to get around reporting requirements. Doing so can result in severe legal penalties, regardless of whether your funds are legitimate. 

By following proper procedures and maintaining transparency with financial institutions, you can safely deposit large cash amounts without breaking the law or your bank’s policies.