7 Things You Should Know If You Deposit More Than $10K Into Your Checking Account

www.gobankingrates.com ^ | 02 April 2024 | Angela Mae

[Red Badger]

If you plan to deposit $10,000 or more into your checking account, there are a few things you should consider first. By law, banks have to report deposits that exceed a certain amount.

Not only that, but many bank accounts come with maximum deposit restrictions. You may also be subject to certain fees when making such a large deposit. If you frequently make large deposits, you should also watch out for any potential scams or fraudulent activity. But even if this is a one-time thing, it’s still important to know about these factors and how they might affect you.

Banks Must Report Large Deposits

“According to the Bank Secrecy Act, banks are required to file Currency Transaction Reports (CTR) for any cash deposits over $10,000,” said Lyle Solomon, principal attorney at Oak View Law Group. CTRs typically include the name of the individual, their account number, Social Security number and taxpayer identification number — all of which are verified and recorded by the bank.

Banks must file CTRs to the Financial Crimes Enforcement Network (FinCEN), which is part of the U.S. Department of the Treasury. Some banks will do this manually, while others will automate the process.

“The creation of a CTR does not mean that your account will be frozen, nor that the Men in Black will be visiting your home,” said Herman (Tommy) Thompson Jr., CFP, ChSNC, ChFC certified financial planner at Innovative Financial Group. For banks, it’s considered standard procedure and isn’t a cause for concern if the deposit is legitimate.

These procedures exist to help prevent money laundering, counterfeit deposits and similar financial crimes from occurring. By requiring banks to report deposits of $10,000 or more, the government can more easily keep track of monetary transactions. As long as your deposits are legitimate, you won’t have anything to worry about.

Structuring Is Illegal

Some people will try to avoid the federal cash-reporting rules by making smaller deposits that total $10,000 or more over a short period — say, a few days or weeks. This is known as “structuring” and is considered illegal. Structuring is essentially the “practice of conducting financial transactions in a specific pattern calculated to avoid the creation of certain records and reports, according to the IRS,” said Solomon.

Sean K. August, CEO of The August Wealth Management Group, added to this by saying that “depositing $8,000 in an attempt to avoid the $10,000 AML (Anti-Money Laundering) limit is a form of structuring, which is also illegal. If the bank suspects that you are trying to avoid the $10,000 limit by making multiple deposits of less than $10,000, they may still report the transaction to FinCEN, and you may face penalties and legal consequences.”

If you make multiple smaller deposits to avoid a CTR, your bank could file a Suspicious Activity Report (SAR). Once received, FinCEN will investigate the activity to determine whether your account is involved in any fraud, money laundering or terrorist funding. Your bank is not required to notify you of this.

You May Need To Provide Additional Documentation

“You may be asked to provide additional information about the source of the funds, such as invoices, receipts, or other documentation,” August said. Providing this information can also help the government identify potential red flags, such as illegal or fraudulent activity. It’s a good idea to keep records of any transactions over $10,000 for tax-related reasons.

Businesses Must File Form 8300

By law, individuals, businesses and trades must file Form 8300 to the IRS within 15 days of receiving a cash sum of $10,000 or more. This form is meant to help prevent money laundering.

Everyone involved in the transaction will also need to provide a written statement to be filed along with Form 8300. If you are required to file but do not, you may face criminal or civil penalties.

Your Bank Account May Have Limits

Certain bank accounts come with a maximum deposit limit. Each institution has its own rules on this. For example, some banks might have different limitations based on if the deposit was done by cash or check.

Verify with your bank that you can deposit $10,000 or more into your account. “Depending on your bank and the specific amount you have, you may be charged fees or penalties for making large deposits,” Solomon said. Review your account’s terms and conditions or ask your bank about potential fees before depositing the money.

Not All Bank Accounts Are Secured

If you’re planning to deposit large sums of money into a bank account, make sure it’s secured. Any bank you use should be FDIC-insured. This means the money in your accounts — checking, savings, money market, etc. — is automatically protected up to a certain amount (usually $250,000 or more) against bank failure. While the FDIC does not insure financial losses caused by fraud or theft, your bank should have other safeguards in place to secure your money.

Watch Out for Scams and Fraud

Unfortunately, scams and fraudulent activity are rather common when dealing with large sums of money. “Always verify the legitimacy of the transaction and the source of the funds before depositing the money,” August said.

There are several common types of scams out there. Confirm where the money is coming from, especially if it’s in a large amount. “If the source of the funds is unclear or suspicious, be careful,” Solomon said. “For example, if someone offers to pay you a large sum of money for a service or product, or if you receive an unexpected windfall from an unknown source, it’s important to be cautious and investigate the situation further.”

If you receive a check, make sure it’s legitimate as well. Some scammers will send a check for you to deposit and ask you to send back some of that money. By the time either you or the bank realizes it was a fraudulent check, it’s often too late and your money’s already gone.

Availability of Funds

After depositing a large amount of money, it’s natural to want to know when you’ll have access to it. This depends on the deposit type and the bank’s policies.

“Large transactions usually have a hold period of two to seven days to verify the authenticity of the check and the ability of the payor to meet the obligation,” Thompson said. “A bank can make the hold longer under special circumstances, but that is fairly rare.”

Cash deposits might be available more quickly. Checks, meanwhile, might take several days to clear and for the funds to show up in your bank account. When in doubt, contact your bank and ask when the money will be available.

[HartleyMBaldwin]

Yeah, I wish I had to worry about making $10,000 deposits.

[Bob434]

so check deposits won’t trigger suspicion or be held to bank limits of $10,000 or so?

[Bob434]

LOL me too-

[glorgau]

Remember to always ask permission first.

[Wilderness Conservative]

You gots to be liking Grey Goose too if you wants to be a Fani.

[napscoordinator]

They just fill out a form. Not to difficult.

[This_Dude]

Says right there in the article, if you deposit sums of money in such a way as to avoid the creation of records, it’s called structuring, and is illegal

[higgmeister]

bttt

[Responsibility2nd]

So...just make several $5000 deposits.

That's called Layering. That will also trigger a SAR.

[Political Junkie Too]

Or EFTs from Vanguard or Fidelity?

-PJ

[Karoo]

know the feeling

[thinden]

good info red.

be sure to forward to james, hunter & joe robinette (big guy of the biden brand)

[Responsibility2nd]

By law, individuals, businesses and trades must file Form 8300 to the IRS within 15 days of receiving a cash sum of $10,000 or more. This form is meant to help prevent money laundering.

Unless you're a biden.

 

Oh they know the Biden's launder money. But they let them get away with it.

 

Comer Reveals How Joe Biden Received Laundered China Money

 

WASHINGTON—House Committee on Oversight and Accountability Chairman James Comer (R-Ky.) today released a video and bank records memorandum revealing how Joe Biden received $40,000 in laundered China money from the account of his brother, James Biden, and his sister-in-law, Sara Biden, in the form of a personal check.

The money trail begins in July 2017 when Hunter Biden demanded payment from his Chinese Communist Party (CCP) linked associate. On July 30, 2017, Hunter Biden sent a message to Raymond Zhao—a CEFC associate—demanding a $10 million dollar capital payment and claimed his father, Joe Biden, was sitting in the room. CEFC is a Chinese energy company linked to the CCP. The Bidens began working with CEFC when Joe Biden was Vice President.

On August 8, 2017, Northern International Capital, a Chinese company affiliated with CEFC, sent $5 million to Hudson West III, a joint venture established by Hunter Biden and CEFC associate Gongwen Dong. That same day, Hudson West III sent $400,000 to Owasco, P.C., an entity owned and controlled by Hunter Biden. On August 14, 2017, Hunter Biden wired $150,000 to Lion Hall Group, a company owned by President Biden’s brother James and sister-in-law Sara Biden. On August 28, 2017, Sara Biden withdrew $50,000 in cash from Lion Hall Group. Later the same day, she deposited it into her and James Biden’s personal checking account. On September 3, 2017, Sara Biden cut a check to Joe Biden for $40,000 for a “loan repayment.”

[Scrambler Bob]

I could swear I remember seeing an article several years back that they were lowering that number to $5000.
= = =

The rule was 10K, but banks wanted to be safe and reported 5K.

[Scrambler Bob]

banks have to report deposits that exceed a certain amount.
= = =

I thought that was for cash only.

If you were cashing check or some other paper transfer it did not apply.

[Vermont Lt]

No. Depositing more than 10k in checks is a common thing for businesses. That would really “muddy” the waters for the Treasury Department.

[Red Badger]

From the Article:

By law, individuals, businesses and trades must file Form 8300 to the IRS within 15 days of receiving a cash sum of $10,000 or more.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Certain bank accounts come with a maximum deposit limit. Each institution has its own rules on this. For example, some banks might have different limitations based on if the deposit was done by cash or check.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

[woodbutcher1963]

I think that irregularities trigger actions.

If you routinely deposit a check from your employer in the amount of $15K or $25K or $150K every month then it does not cause an alarm.
This is because there are people who make high six and seven figure incomes. They also get a W2 that shows that they has earnings and paid taxes, SS and medicare on an income of $750K.

What causes alarm bells to go off are deposits of checks and cash when you have no income to show it. Unless you are a used car dealer like a buddy of mine who buys cars at the auction and then sells them on Facebook Marketplace.

[Glad2bnuts]

The govt requires reporting on deposits $10K and more. People see the rule, then make deposits more often and under the reporting limit. Then the govt goes after the depositor for the made up crime of “structuring” which is a crime?

Ladies and Germs, we are not free. We need to quit pretending we are free of tyranny.

[Flash Bazbeaux]

“As long as your deposits are legitimate, you won’t have anything to worry about. “

Absolute BS.