Q:

Can I deposit one million dollars in a bank?

A:

It is possible to deposit one million dollars in a bank. However, depositing one million dollars in one bank account creates a balance that is above Federal Deposit Insurance Corporation limits. If the deposit is in cash, additional paperwork will be required by the bank to accept the deposit.

According to the FDIC, an account is insured for up to $250,000 for each owner on the account in the event that the bank fails. For example, a joint account with two owners is insured up to $500,000. Spreading one million dollars over multiple types of accounts, such as checking, savings, money market and certificates of deposit can distribute the money so that it falls within FDIC coverage limits.

When a deposit of more than $10,000 cash is made at a bank, a form called a Currency Transaction Report (CTR) must be filled out by the bank employee accepting the deposit. The form must be filled out even if the amount is spread out over several transactions throughout the business day. A CTR asks for identifying information about the depositor and is used to help prevent money laundering.

Sources:

  1. fdic.gov
  2. ffiec.gov

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