What Does Someone Need to Deposit Money in Your Account?

Depositing funds into another individual’s bank account is common for various reasons, such as sending financial gifts, contributing to shared household expenses, or assisting with bill payments. This process requires specific information from both the depositor and the account holder. Understanding these requirements ensures a smooth and secure transaction.

Information and Items Required for Deposit

To deposit into someone else’s bank account, gathering specific details is necessary. The depositor needs the account holder’s full legal name as registered with the bank to prevent discrepancies. This accuracy helps the bank correctly identify the receiving account.

The recipient’s bank account number identifies their specific account. For electronic transfers, the bank’s routing number, a nine-digit code, identifies the financial institution. Account holders can provide these numbers from a check, their online banking portal, or by contacting their bank.

The type of funds dictates certain requirements. For cash, the physical currency is needed. A third-party check (made out to the account holder but deposited by someone else) requires proper endorsement by the account holder. This involves signing the back of the check and may include “For deposit only” along with their account number.

For security and regulatory compliance, the depositor needs valid government-issued identification, especially for cash deposits or larger transactions. This helps banks verify identity and comply with anti-money laundering (AML) regulations. A deposit slip, obtainable at the bank branch, is typically required for in-person cash or check deposits, which the depositor fills out with the account number and amount.

Methods for Making a Deposit

Several methods are available for depositing money into another person’s account. An in-person deposit at a bank branch involves presenting cash or a check, a completed deposit slip, the recipient’s account information, and personal identification to a teller. The teller processes the transaction and provides a receipt.

An Automated Teller Machine (ATM) is another method. The depositor selects the deposit option, inserts cash or a check, and enters the account number and amount. The ATM provides a receipt. ATMs may have limits on the number of bills or checks that can be deposited.

Mobile check deposit offers a flexible alternative using a bank’s smartphone application. The process involves logging into the mobile app, selecting the deposit feature, choosing the target account, and entering the check amount. The user photographs the front and back of the endorsed check. Mobile check deposit limits can vary by bank and account relationship.

For electronic transfers like Automated Clearing House (ACH) or wire transfers, the sender initiates the transaction from their own bank account. An ACH transfer requires the recipient’s bank account and routing numbers, and typically takes one to three business days to process. Wire transfers require the recipient’s name, address, account number, and the bank’s routing number. International wire transfers may also require a SWIFT/BIC code and an International Bank Account Number (IBAN).

Important Considerations for Deposits

Banks often impose specific deposit limits, which vary by transaction type and financial institution. While there is generally no specific monthly limit on cash deposits, individual banks may have daily or transaction limits for ATM deposits. Mobile check deposits also have daily and monthly limits.

Funds availability is another aspect, governed by federal regulations like Regulation CC. Banks make deposited funds available within specified timeframes, though certain types of deposits can lead to temporary holds. Cash and electronic payments generally become available the next business day. However, larger deposits or deposits into new accounts may be subject to extended holds.

Banks may have verification requirements beyond identification. For larger deposits, especially cash, banks might inquire about the source and purpose of funds. This complies with anti-money laundering (AML) regulations. Federal law requires banks to report cash deposits exceeding $10,000 to FinCEN. Attempting to avoid this reporting by breaking a large deposit into multiple smaller transactions, known as structuring, is illegal.

Potential fees associated with certain deposit methods should be considered. Depositing cash or checks in person or via ATM is typically free. Electronic transfers can incur costs, with wire transfers usually involving fees for sending funds. Some banks may also charge a fee for receiving incoming wire transfers.