4 Things You Must Know if You Deposit $10K Into Your Bank Account

If you have $10,000 or more to deposit at your bank, you're probably eager to get it into your account where the funds will be safe and accessible. Before you head down to your local branch, though, there are a few key points you need to know when you have a very large deposit to make. Here are four of them.

1. The Bank Secrecy Act requires the bank to report it to the IRS

If you have a deposit of $10,000 or more, a law called the Bank Secrecy Act actually requires the bank to report the transaction to the IRS. This same requirement is in place when you make a withdrawal of $10,000 or more.

Banks are required to keep records of these transactions and to make reports of them as part of an effort to stop behaviors such as money laundering and tax evasion. You aren't going to get in trouble, or likely even face any questions from government agencies, unless of course the transaction raises some type of red flag that suggests you might be engaging in unlawful activity. So you shouldn't be worried about this -- you should just be aware of it.

2. Structuring to try to avoid reporting requirements is illegal

If you're a little nervous about the bank sending Uncle Sam a report of your financial dealings, then you may be tempted to try to avoid the reporting requirement by breaking up your big deposit into a bunch of smaller ones for your checking account.

Our Picks for the Best High-Yield Savings Accounts of 2024

Capital One 360 Performance Savings APY 4.25% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening. Min. to earn $0 Open Account for Capital One 360 Performance Savings Member FDIC.	APY 4.25% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening.	Min. to earn $0
American Express® High Yield Savings APY 4.25% Rate info 4.25% annual percentage yield as of July 3, 2024 Min. to earn $1 Open Account for American Express® High Yield Savings Member FDIC.	APY 4.25% Rate info 4.25% annual percentage yield as of July 3, 2024	Min. to earn $1
Citizens Access® Savings APY 4.50% Min. to earn $0.01 Open Account for Citizens Access® Savings Member FDIC.	APY 4.50%	Min. to earn $0.01

Don't do that. Dividing up a deposit with the goal of avoiding the reporting requirements under the Bank Secrecy Act is actually a crime -- even if you got the money legally in the first place.

Breaking up your deposits so the bank doesn't have to report them is called structuring. Banks may get suspicious that you're doing it and raise the red flag if you make several deposits that are just under the reporting limits. It could also look suspicious if you make a bunch of deposits of any size that add up to $10,000 or more in a short period of time.

Any time your bank suspects you might be trying to avoid a report to the IRS, it is supposed to file a Suspicious Activity Report. This is sent to the Financial Crimes Enforcement Network (FinCEN). FinCEN will investigate and agents may just end up asking you some uncomfortable questions -- and potentially charging you with a criminal act.

It's a whole lot easier if you just deposit the whole $10,000 in the first place -- as long as you aren't breaking the law, of course.

3. You might be asked to provide additional information

Your bank must provide certain information about you to the IRS when it reports your large transaction. As a result, they may ask you for some details. A teller might ask to see your ID, for example, and they might verify other information such as your name, Social Security number, and address, all of which are going to be filled in on the form they send off to the IRS.

Don't be alarmed if this happens to you. Just give your bank the information they need.

4. You might run into your bank's deposit limit

Finally, some banks have daily deposit limits -- especially when account holders are using mobile devices to electronically deposit payments. You'll probably run into these if you try to deposit your check via phone or ATM, and may have to go see a bank employee in person to get your money in the bank.

Knowing what to expect when making a deposit of $10,000 or more can help prepare you so you won't be caught off guard when you head to the bank. You may also want to consider what you're going to do with all that money, as certificates of deposit (CDs) are offering great rates right now and are worth exploring.