Did you know that most Americans still prefer to use cash, even though there have never been more cashless options available? According to a survey by YouGov at the start of this year, 67% of Americans still prefer to use old-fashioned notes and coins when making their usual transactions, and a quarter of consumers reported not using any mobile payment systems or apps. Cash is still king, and for it to retain its throne, consumers still have to work with conventional banks and make physical deposits.
Some of you reading this article might be surprised that people still put cash into their accounts at banks, but as the survey highlights, there are millions upon millions of people out of three for whom this is a necessity. If you’re just going to your local neighborhood bank and depositing a couple of hundred dollars, then that’s easy enough, but larger amounts may well require greater scrutiny.
Managing your money means that you’re aware of the various transactional requirements mandated by both banks and the government, so you’ve got to know America’s cash deposit rules. This guide will help you get up to speed on everything to do with how much cash you can t put into a bank account and how to do it.
Why Would I Deposit Money at the Bank?
You might be surprised that we get asked this question a lot, but bear in mind that many people using a budgeting app work entirely with cashless transactions. Sometimes, they think that making a cash deposit refers to going to a real-world bank and giving in notes and coins.
That’s the classic definition, and nowadays cash deposit limits also cover sending money to a bank account electronically or via an ATM. The forms of cash that may be used to complete this type of deposit are also varied and include paychecks, tax rebates, money orders, distributions from retirement accounts, and other sources.
Putting money into an account provides you with something called liquidity, which refers to the simplicity with which a security, or asset, can be changed into quick cash without lowering its market value. Having liquid cash assets is important, as this can insulate you from financial shocks and provide you with increased flexibility should market or economic conditions change.
In almost all cases, deposits provided to banks are what are called demand deposits. This means that you can withdraw the money at any time without advance notice and without any specific conditions.
Cash Deposit Limits – How Much Cash Can I Deposit at a Bank?
There are several important rules about cash deposit limits in the United States that you need to be aware of, starting with the fact that you can’t deposit more than $10,000 without declaring it. So, for example, if you’re going to your bank with $100 in small notes or $2,000 all in one hundred bills, then you can make these cash deposits without worrying about letting the government know.
However, if a bank receives more than $10,000 in cash deposits, it must electronically file a Currency Transaction Report (CTR). The Bank Secrecy Act describes this as a federal obligation (BSA), and the figure of $10,000 may originate from a single cash deposit or several deposits totaling more than $10,000 made in a single day.
The term cash deposit limits does not refer to any specific purpose you may have for the money that you are putting in or to the type of account into which you are depositing your money; it refers solely to the total deposit you can make without having to inform the federal authorities. Rest assured that banks are obligated to do this automatically, so you won’t have to go through the process of contacting the government yourself.
Is There a Way Around Federal Cash Deposit Limits?
The short answer is no, and it’s a really bad idea to try to find a way around this limit illegally. The Bank Secrecy Act and the USA Patriot Act both cover money laundering activities, and that’s why there’s a $10,000 limit in place.
These acts are designed to ensure that criminals cannot launder money by depositing large amounts of cash. Remember, the USA Patriot Act was brought in after 9/11. It’s a serious piece of legislation designed to target terrorism, so do not end up on the wrong side of the law here.
The act of trying to be ‘clever’ and transferring money via multiple cash deposits to get around the limit is called structuring, and it’s a very, very bad idea. Cash structuring is considered a federal crime, and a person convicted of this offense can face substantial fines and up to five years in prison for doing so. Cash structuring can lead to additional felony charges depending on the amount of money involved and the intended purpose of the illegal structuring, so please always make sure your money is declared if necessary.
How Can I Deposit More than $10,000?
It is totally acceptable to go over federal cash deposit limits if you declare it, and as long as you have a legitimate reason for doing so, you can be very confident that your money will be safe at your bank. If you have a large amount to deposit, then we recommend that you start the process by contacting your bank directly to let them know your plans and the reason for doing so. If you’re going to visit a branch and intend to deposit physical cash, then this is a particularly good idea, as this will allow your customer service representative to provide security measures for these funds. .
Going over your max cash deposit limits as a business owner is a different process, and you have to do more paperwork than you would as an individual bank customer. You must notify the Inland Revenue Service (IRS) if you get paid more than $10,000 in cash in a single transaction or in two or more transactions over the course of a year. To report this kind of activity, fill out IRS Form 8300, which requires both you and the payer to fill out the form with the specifics of the transactions.
What Are Bank of America’s Cash Deposit Limits?
We get asked this question a lot, and as we’ve mentioned earlier in this article, cash deposit limits are set by the federal government. As such, banks don’t have any wriggle room when it comes to this limitation, whether it be for Bank of America, JPMorgan Chase Bank, Wells Fargo, or any other institution. That being said, these limits apply to reporting only, so it’s technically feasible for them to set rules about how much cash their customers can deposit, as long as it’s reported.
Word-of-mouth reports on social media sites like Reddit and Quora report that Bank of America will allow cash deposits of up to $5,000 without any restrictions, and that amounts higher than this, may require some basic investigation. Chase doesn’t seem to have a specific limitation, and this could highlight the fact that banks don’t want to publish their own cash deposit limits. This could be to allow their branch bankers to make their own judgment calls on clients who deposit amounts of cash under $10,000 and whether they want to conduct their own investigation.
Need More Help Managing Your Cash? Sign up for PocketGuard
Managing your money is difficult enough these days with so many options out there for your bank accounts, credit cards, payment methods, etc., and while it’s good to have more choices, most people want their finances to be simple. That’s why it shouldn’t be surprising that most Americans still prefer to carry out their day-to-day financial transactions with cash, as this makes it simple to actually see the amount of money you have available to you. If you want to manage your money electronically, which provides greater security and financial flexibility, then PocketGuard is for you.
Our budgeting app helps you take full control over your capital by providing a management system that’s simple to use and that’s customizable to ensure that the app matches your financial profile. For example, if you’re worried about cash deposit limits across your various bank accounts, you can configure the PocketGuard app to set custom limits for them. These will be directly integrated into your interface, allowing you to see every account at the same time.
All you need to do to take advantage of the simplicity the app offers is sign up today, create an account, and you’ll be ready to go. You can also read our other blog articles to learn more about how to better manage your finances, make investments, live according to your means, and other matters. In the meantime, remember, always remember to declare cash deposits of over $10,000.
