Anonymous
Anonymous asked in Business & FinancePersonal Finance · 7 months ago

Does the $10,000 deposit limit apply to depositing money in a newly opened bank account?

I'm 29 years old and I'm opening a new savings account for the first time in my life. I have $40,000 in cash I want to deposit. I had that money in my safe at home for years. It's my life savings. I know that there's a $10,000 deposit limit or the bank will report you to the IRS.

Does that rule also apply if you open a new bank account or just for existing bank accounts?

What should I do?

18 Answers

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  • susan
    Lv 7
    7 months ago

    Yes, but it only applies to cash deposits, not transfers from another financial institution. As Steven says, this is not a limit, so much as a rule that for large cash transactions, the source of the money must be explained.

  • Anonymous
    7 months ago

    there are some good answers Just be able to show where the money originally came from PAPER trail

    Coffee drinker gave great advice

  • 7 months ago

    There IS NO limit on deposits. CASH transactions, in or out of the account require a CTR (currency transaction report) that creates a record for the purpose of investigating money laundering and similar financial crimes.

    99% of CTRs are filed and IGNORED. Multiple transactions that LOOK LIKE an attempt to avoid the CTR will result in an SAR (suspicious activity report). An SAR is FAR more likely to generate unwanted attention than a CTR.

    Source(s): 2 decades working at a bank.
  • zipper
    Lv 6
    7 months ago

    No it does not, this is on money with draws or taken out of the country not on what you put in a bank to save or use later on checking account.

    • John7 months agoReport

      Zipper has no idea what he is talking about. ANY CASH TRANSACTION over $10,000 will get reported to the IRS, and to Homeland Security, simply to make sure it is not dirty money. Doesn t mean you can t do it. You absolutely can.

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  • B
    Lv 7
    7 months ago

    of course it does.

    the federal government is interested in large transactions and you may have to show how you procured the funds.

    if you are so concerned, open several accounts at various banks each under $10K

  • 7 months ago

    You could deposit 8K every week or so until its all in there. You could also simply deposit the whole 40k and so long and you can prove it was from a different account it won't really matter.

    • STEVEN F
      Lv 7
      7 months agoReport

      That will GUARANTEE a Suspicious Activity Report which will actually trigger an investigation. A Currency Transaction Report for a single $40,000 deposit will be filed and ignored.

  • 7 months ago

    When a transaction involving more than $10,000 in cash is processed, most banks have a system that automatically creates a CTR electronically. Tax and other information about the customer is usually pre-filled by the bank software. CTRs since 1996 include an optional checkbox at the top if the bank employee believes the transaction to be suspicious or fraudulent, commonly called a SAR, or Suspicious Activity Referral. A customer is not directly told about the $10,000 threshold unless they initiate the inquiry. A customer may decline to continue the transaction upon being informed about the CTR, but this would require the bank employee to file a SAR. Once a customer presents or asks to withdraw more than $10,000 in currency, the decision to continue the transaction must continue as originally requested and may not be reduced to avoid the filing of a CTR. For instance, if a customer reneges on their initial request to deposit or withdraw more than $10,000 in cash, and instead requests the same transaction for $9,999, the bank employee should deny such a request and continue the transaction as originally requested by filing a CTR. This sort of attempt is known as structuring, and is punishable by federal law against both the customer and the bank employee.[4][5] Those who habitually run transactions just under the $10,000 threshold will likely subject themselves to scrutiny and/or the filing of a SAR.

  • 7 months ago

    It is only that amount or higher that requires a bank to report it to the IRS not that you cannot deposit a larger amount

  • 7 months ago

    Deposit it in increments of just less than 10000. You could ask the bank how much time they need to see lapse between deposits before required to report.

    • STEVEN F
      Lv 7
      7 months agoReport

      That will GUARANTEE a Suspicious Activity Report which will actually trigger an investigation. A Currency Transaction Report for a single $40,000 deposit will be filed and ignored.

  • Judy
    Lv 7
    7 months ago

    It will be reported. You'll just need to show that you got it legally and have paid any tax due on it.

    • STEVEN F
      Lv 7
      7 months agoReport

      A CTR has ABSOLUTELY NOTHING to do with taxes.

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