What happens when you deposit too much
cash into your bank account?
After closing on a house, selling a car, or getting a windfall from Uncle Bob's estate, you could end up with a wad of cash over $10,000. That might be unusual enough for you to wonder if your bank will think its suspicious.
It's true that banks are required to report unusual deposits over $10,000 to the government to monitor for financial crimes and money laundering. Even if the amount is under $10K but you suddenly deposit, say $8,500 twice over a couple days, you'll trigger what's called structuring, which is illegal.
For these reasons, your bank may put a temporary hold on your account while they confirm that the source of funds is legit. It's also why, when you open a new account, you might be asked how much you expect to be depositing. If your income is going to bring in $30,000/mo., the bank can adjust for that.
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