Depositing large amounts of money can trigger extra attention from the bank, especially if you don't normally conduct large transactions. You also have to guard against loss of your deposited funds by making certain your deposit is covered by the Federal Deposit Insurance Corp. Though you don't have to pay extra federal taxes on the deposited amount -- unless such taxes result by the method you received the money -- you may be subject to bank holds or extra paperwork. In most cases, this "red tape" is for your protection and legally required by the bank.
Deposit large amounts of money up to £3,250 to £6,499 into your bank account. Ask the bank teller about the bank's "hold" or delaying of funds policy. Legally, the bank can place a hold for up to six business days on amounts exceeding £3,250. In other words, you may have access to only £3,250 of your deposit until the bank releases the remaining amount.
Take deposits totalling £6,500 to £162,500 to your bank. Provide the bank teller with your state-issued identification and answer any questions or fill out any forms the bank may require. As part of the Bank Secrecy Act, banks must file a Currency Transaction Report for transactions over £6,500 and have their own monitoring and reporting procedures. This may involve answering questions about your identity, presenting your driver's license as identification or signing a document.
Split deposit amounts larger than than the FDIC insurance limit of £162,500 per depositor. You can either open accounts at two or more separate banks or open multiple accounts at the same bank. For example, you can open an individual account for yourself and a joint account with your spouse at the same bank and be insured up to £325,000.
Find a bank that participates in an expanded FDIC insurance program if depositing larger amounts up to £3 million or £32 million. Banks that participate in the IDC Deposits program or the CDARS --- Certificate of Deposit Account Registry Service --- program can insure your excess funds over the FDIC limit up to £3 million and £32 million, respectively. These programs place your funds in excess of £162,500 into certificates of deposit and money market accounts at different, nonrelated banks.
The bank at which you deposit your money may have its own policies and place a hold on certain amounts less than £3,250.
Splitting your money into smaller deposits over a period of several days to disguise a large amount is called "structuring" and is a federal offence.
Tips and warnings
- The bank at which you deposit your money may have its own policies and place a hold on certain amounts less than £3,250.
- Splitting your money into smaller deposits over a period of several days to disguise a large amount is called "structuring" and is a federal offence.
- Federal Financial Institutions Examination Council: Currency Transaction Reporting -- Overview
- Bankrate; FDIC Insurance Bank Deposits To £162,500; Marcie Geffner; September 2010
- The Federal Reserve Board: Compliance with Regulation CC
- Bankrate; 6 Ways to Insure Excess Deposits; Laura Bruce; April 2009