Can You Put Cash Into Your Bank Account?

Depositing cash into a bank account is a common financial activity for individuals and businesses. While typically straightforward, understanding the methods and reporting requirements helps ensure smooth transactions. Awareness of banking regulations and potential inquiries is beneficial.

Methods for Depositing Cash

Depositing cash into a bank account can be accomplished through several methods.

Bank Branch

At a bank branch, interact directly with a teller. Fill out a deposit slip with your account details and the cash amount, then hand it to the teller, often with identification. Verify the deposit amount and retain the receipt for your records.

Automated Teller Machines (ATMs)

ATMs offer a convenient way to deposit cash, often outside traditional banking hours. Insert your debit card, enter your PIN, and select the cash deposit option. Most ATMs allow you to insert bills directly; the machine counts and displays the amount for verification. Confirm the amount on the screen and take a receipt for accuracy.

Mobile Deposit and Retail Locations

Mobile deposit applications, while widely used for checks, are generally not designed for physical cash. These apps rely on image capture of checks and lack the mechanism to handle physical currency. However, some online-only banks or financial apps might partner with retail locations, allowing users to deposit cash at participating stores, often for a fee.

Mailing Cash

Mailing cash to a bank is strongly discouraged due to security risks and the lack of tracking or recourse if lost or stolen.

Reporting Requirements for Cash Deposits

Banks are subject to regulatory obligations concerning cash transactions under the Bank Secrecy Act (BSA). The BSA is a federal law designed to combat financial crimes like money laundering and tax evasion by requiring financial institutions to maintain records and report certain transactions. A key component is the Currency Transaction Report (CTR).

Financial institutions must file a CTR with the Financial Crimes Enforcement Network (FinCEN) for any cash transaction exceeding $10,000. This threshold applies to single or multiple related transactions by the same person within a single business day. The bank is obligated to file this report, not the individual. Filing a CTR does not imply wrongdoing; it is a standard regulatory procedure for large cash transactions, providing transparency to financial authorities.

Considerations for Large or Unusual Cash Deposits

Depositing large or unusually frequent cash amounts can lead to scrutiny from financial institutions, even if they don’t immediately trigger a CTR. Banks have anti-money laundering (AML) obligations that extend beyond just filing CTRs, prompting inquiries about the source of funds for certain transactions. If a deposit is inconsistent with a customer’s typical banking activity, a bank may ask for documentation or an explanation regarding the cash’s origin, such as from a vehicle sale, inheritance, or legitimate business income.

Intentionally breaking down a large cash deposit into multiple smaller deposits to avoid the $10,000 CTR reporting threshold is “structuring,” which is illegal. Structuring is a serious felony, regardless of whether the funds were legitimately obtained, and can lead to severe penalties, including substantial fines and imprisonment. Banks identify patterns indicative of structuring and may file a Suspicious Activity Report (SAR) with FinCEN if they suspect such activity, even for deposits below $10,000. Beyond federal regulations, individual banks may also have internal policies regarding deposit limits or transaction patterns that might prompt further questions, aiming to manage risk and ensure compliance.