If you find yourself depositing more than $10,000 into your bank account, it may be accompanied by a congratulatory gesture. Putting away $10,000 in a top-tier checking account for savings or to pay off debt is not something most of us do every day. Most of us would be happy to save less than $1,000, let alone 10x.
Saving $10,000 may be a happy moment for you, but it could actually be seen as suspicious activity in the eyes of the federal government. The very act of depositing that amount will trigger a report from the bank to the federal government. If you’re looking to deposit $10,000 or more, here’s what you need to know.
Banks report cash deposits totaling $10,000 or more
Banks must report deposits over $10,000 to the IRS in a form called a Currency Transaction Report. Yes, even if it’s only $10,000.
It’s not just about deposits. Banks must report transactions over $10,000, including withdrawals. And if you think you can avoid reporting by splitting large transactions into smaller transactions, you’re wrong. This is known as ‘structuring’ and banks will also report it. For example, if you deposit $3,000 today, $3,000 tomorrow, and $4,500 two days later, your bank will report the transaction to the IRS.
Recommendations for the Best High Yield Savings Accounts of 2024
Capital One 360 performance savings
AP
4.00%
Price Information A circle with the letter I written on it. Please visit the Capital One website for the latest pricing. Published Annual Percentage Yield (APY) is variable and accurate as of October 23, 2024. Rates may change at any time before or after account opening. Member of the FDIC.
AP
4.00%
Price Information A circle with the letter I written on it. Please visit the Capital One website for the latest pricing. Published Annual Percentage Yield (APY) is variable and accurate as of October 23, 2024. Rates may change at any time before or after account opening.
Minutes. earn
$0
American Express® High Yield Savings
AP
4.00%
Price Information A circle with the letter I written on it. Annualized yield of 4.00% as of October 27, 2024. FDIC Member States.
AP
4.00%
Price Information A circle with the letter I written on it. Annual percentage yield as of October 27, 2024 4.00%
Minutes. earn
$0
CIT Platinum Savings
AP
4.70% APY for balances over $5,000
Price Information A circle with the letter I written on it. 4.70% APY on balances over $5,000. Otherwise, 0.25% APY
Minutes. earn
$100 to open account, up to $5,000 APY
Member of the FDIC.
AP
4.70% APY for balances over $5,000
Price Information A circle with the letter I written on it. 4.70% APY on balances over $5,000. Otherwise, 0.25% APY
Minutes. earn
$100 to open account, up to $5,000 APY
Don’t get me wrong here. Just because you deposit $10,000 into your bank account doesn’t necessarily mean the IRS will come after you. Federal reporting is in place to help the federal government track financial crimes, so unless you’re doing something illegal, the federal government probably won’t care.
Also, don’t let this report stop you from depositing large amounts of money into your bank account. If you keep your cash in a personal safe, you’re missing out on the opportunity to earn interest in a high-yield savings account. If you haven’t opened a high-yield savings account yet, check out our curated best-of list to get the best interest rates.
How to deposit more than $10,000 legally
The best way to deposit $10,000 or more is to simply do it. Do not attempt to structure deposits or avoid reporting requirements. If you don’t want to draw attention to yourself, just deposit the money and go about your daily life.
On the other hand, you’re more likely to run into problems if you try to break up large deposits into smaller chunks to avoid the federal government’s scrutiny. Even if you’re not doing this with illegal intent, it could cause unnecessary problems in the future, for example because you just want to be left alone or don’t want the federal government to track your activities. There is.
Overall, banks are still the safest place to store your money. When you deposit with an FDIC-insured bank, your money is guaranteed up to $250,000 per depositor and ownership category. (Joint accounts are insured up to $500,000.) What’s more, this money can be withdrawn at will, even if a large transaction triggers a report.
If you put $10,000 into your account with the intention of keeping it there for the long term, make sure you earn interest. Savings accounts are a good option, but so are money market accounts. Check out our list of the best money market accounts today.
