It’s probably not every day you think about depositing more than $10,000 into your savings account. But it can happen.
Let’s say you sell your car and someone pays $12,000 for it. Similarly, when you sell your home, the buyer may ask if you can also sell the furniture. Maybe they’ll write you a check for $10,000 or more.
You should know that if you deposit more than $10,000 into your savings account, your bank will have to report it to the federal government. But that’s not necessarily a problem for you.
Don’t stress about making a large deposit
If you are depositing large amounts of illegally obtained funds, you should be concerned that your activity will be flagged. You also have to worry about going to jail. But if the money is yours and you got it through legal channels, you don’t need to worry too much even if you deposit more than $10,000 and it gets flagged by your bank.
Recommendations for the Best High Yield Savings Accounts of 2024
American Express® High Yield Savings
AP
4.10%
Price Information A circle with the letter I written on it. Yield of 4.10% per annum as of October 10, 2024. FDIC Member States.
AP
4.10%
Price Information A circle with the letter I written on it. Annual percentage yield as of October 10, 2024 4.10%
Minutes. earn
$0
Capital One 360 performance savings
AP
4.10%
Price Information A circle with the letter I written on it. Please visit the Capital One website for the latest pricing. Advertised Annual Percentage Yield (APY) is variable and accurate as of September 27, 2024. Rates may change at any time before or after account opening. Member of the FDIC.
AP
4.10%
Price Information A circle with the letter I written on it. Please visit the Capital One website for the latest pricing. Advertised Annual Percentage Yield (APY) is variable and accurate as of September 27, 2024. Rates may change at any time before or after account opening.
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 of $5,000 or more. 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 of $5,000 or more. Otherwise, 0.25% APY
Minutes. earn
$100 to open an account, up to $5,000 APY
Banks are required under the Bank Secrecy Act to report transactions over $10,000. That’s because large transactions can sometimes indicate money laundering or other criminal activity.
But please relax. Just because you sold your car for $12,000 and put the money into savings doesn’t mean the police are going to break into your house. In that scenario, your bank will likely report the transaction, but you won’t even know it took place.
Need to deposit more than $10,000 into your savings account?
You shouldn’t be afraid to put more than $10,000 into savings for fear of repercussions. But the question you should ask yourself is, is that much money in your savings account or in another type of account?
If you need money for urgent bills or short-term goals, a savings account is your best bet. If you want the best interest rates, check out our list of the best high-yield savings accounts on our radar.
However, if you have no plans to use the money in the short term and don’t need it as an emergency fund, you may want to consider investing instead. Over the past 50 years, the average annual return for the S&P 500 has been 10% in both good and bad years.
If you invest $12,000 in an investment portfolio that earns you 10% annually, your savings will be worth about $80,700 20 years from now. Even if your savings account pays you 4% a year for the next 20 years (which is unlikely since interest rates aren’t usually that high), you’ll only need about $26,300. That’s a big difference.
So while it may be okay to put more than $10,000 in a savings account, keep in mind that doing so isn’t always the best idea. Investing in one of the best stock brokers will put more cash in your pocket in the long run.
