Cash Deposit Limits: How Much Cash Can You Deposit In The Bank At Once?

Cash deposit limits can be different for each bank or financial institution, but banks must report any deposits over $10,000 to the IRS. So, while you may be able to deposit more than $10,000 into your bank account, know that the bank will investigate, track and report that payment as a result to ensure it’s legal.

It's also important to keep in mind that there are many kinds of cash deposit limits. For example, banks may have daily cash deposit limits for ATMs or savings deposits, but the IRS $10,000 limit on cash payments/deposits is the primary focus of this article.

Why Do Banks And Financial Institutions Have Cash Deposit Limits?

Congress passed the Bank Secrecy Act in 1970 and it has been amended several times, such as with the Patriot Act passed in 2001. These acts are intended to prevent against illegal activities such as:

• Money laundering
• Tax evasion
• Terrorism
• Drug trading

Requirements For Reporting Large Deposits Or Payments

Here are the requirements for when you have to report a large deposit or payment:

• Cash payment in a lump sum over $10,000
• $10,000 payment via two or more related transactions in a 24-hour period
• $10,000 payment via two or more related transactions in a 12-month period

It's important to note that you can't just break up a large payment into smaller payments to get around the cash deposit limits. This is called structuring, which we'll cover in more detail later in the article.

What Happens When You Deposit Over $10,000 Via Check?

It is also important to understand that depositing over $10,000 via check is legal. It just triggers additional steps the bank needs to take. Here is a look at what happens:

1. You deposit a check over $10,000 into a checking or savings account: A large deposit or deposits over $10,000 trigger a few additional steps.
2. The bank fills out Form 8300: IRS Form 8300 (Report of Cash Payments Over $10,000 Received in a Trade or Business) helps regulators prevent financial crime.
3. The bank verifies your identification: With large deposits, the bank is required to verify your identification, which they do with a Currency Transaction Report.
4. The bank files a Currency Transaction Report: All of the deposit details and verified identity information are entered into a Currency Transaction Report within 15 days of the transaction. The bank then keeps the Currency Transaction Report on file for at least five years.

Can You Break Up A Large Deposit Into Smaller Amounts To Avoid Getting Reported?

Since depositing over $10,000 triggers additional verification and process, you might think that it's a good idea to break up large deposits to get around these money laundering reporting requirements. However, this is called "structuring" and it is, in and of itself, a crime. So even if the money that you are trying to deposit was legally earned, breaking that deposit into smaller amounts of cash becomes a crime. If you have over $10,000 that was legally earned and you want to deposit it, make sure to deposit it all at once.

When Do I Have To Fill Out Form 8300 Myself?

If you are a small-business owner, there are some circumstances where you may need to fill out IRS Form 8300 yourself. If you receive a cash deposit of over $10,000 in a single transaction or in related transactions, you will need to fill out Form 8300 within 15 days of receiving the cash deposit.

How To Fill Out Form 8300

You can choose to file Form 8300 with the IRS either online or by mail. If you're filing Form 8300 online, you can use the Financial Crimes Enforcement Network's BSA E-Filing system. There is no charge to e-file. You can also choose to mail Form 8300 directly to the IRS. You'll want to check with the IRS for the most up-to-date mailing address, but as of the date of the writing of this article, the address is Internal Revenue Service, Detroit Federal Building, P.O. Box 32621, Detroit, MI 48232.

Consequences Of Illegal Financial Activities

There can be both financial and legal consequences for illegal financial activity or failing to file Form 8300. Illegal financial activity can come with civil, criminal and financial penalties. In some cases it can be complicated to prove that money was earned illegally, which is why you hear of criminals being prosecuted for income tax evasion — Al Capone is a famous example. Failure to file Form 8300 for receiving large cash deposits can also come with penalties including forfeiture of the income, fines and/or jail time. It's important to both understand and comply with cash deposit limits and reporting requirements.

The Bottom Line: As Long As You’re Earning Money Legally, There’s No Cause For Concern

One of the major takeaways you should have is that it is not illegal to make or receive a large amount of money in cash or check. However, failing to make the required financial disclosures may subject you to fines or criminal liability. In addition, breaking up large payments into amounts under $10,000 is a crime called structuring, even if the money in question was earned legally.

In order to be organized and make sure that you understand your reporting requirements, you'll want to have your finances organized. One way to do that is to sign up for the free Rocket Money^SM app.