Depositing at $20k personal check?

[Homerboy]

Without going into a long story, I have a personal check for $20K made out to me. Will run into any headaches depositing that directly into my bank account? Will the bank flag/hold it for X days? What sort of trouble am I getting myself into?

Edit: How the hell do I edit thread titles now?!!?

 

[ponyo]

zero issue. Your bank might place a hold on the fund for couple of days if you don't have the balance to cover it or if $20k check is not normal/common depositing amount. As long as the check is legit and doesn't bounce, you have zero worry.

 

[GeekDrew]

What happens is at the intersection of bank policy and federal law. You'll be reported to the government for a large transaction (which is nothing to worry about; it happens all the time), and expect to have the deposit held for some number of days before it clears the transmitting bank and your bank approves its availability into yours.

 

[dullard]

Typically when I have deposited checks like that then there is a hold on the funds for a while. It takes roughly 3 to 5 days if the check is from the same bank or 7 to 10 days if the check is from another bank. They will likely tell you the amount of time the hold will be when you make the deposit. If you have an insider connection with someone at the bank, then they can probably waive the hold for you (happened to me once and my father who worked at a different branch of the same bank told them to just waive the holding period).

Other than that, I've never had a single problem. The transaction will be reported to the IRS, but unless it was a shady deal, you have nothing to worry about there.

 

[Homerboy]

What happens is at the intersection of bank policy and federal law. You'll be reported to the government for a large transaction (which is nothing to worry about; it happens all the time), and expect to have the deposit held for some number of days before it clears the transmitting bank and your bank approves its availability into yours.

Federal Law is depositing $10K or more in cash over a 1 year period.

 

[ponyo]

Typically when I have deposited checks like that then there is a hold on the funds for a while. It takes roughly 3 to 5 days if the check is from the same bank or 7 to 10 days if the check is from another bank.

Other than that, I've never had a single problem. The transaction will be reported to the IRS, but unless it was a shady deal, you have nothing to worry about there.

Why would they report the transaction to the IRS? Is there some new banking law I'm not aware of? It's a check and not cash deposit.

 

[A Casual Fitz]

Yeah, it's cash that would be reported. Checks aren't.

 

[Red Squirrel]

Yeah, it's cash that would be reported. Checks aren't.

Good to know, I'll just get my drug distributors to cut me cheques instead of giving me cash. Due to cook up a batch tonight and cut with some liquid Tide, seems to be a hit with the kids.

Seriously though it's kind of odd they make a distinction. I heard deposits over 10k tend to raise flags but if it's just cash then I guess you will be fine. Typically the government does not like seeing regular citizens getting ahold of large sums of money and they will want a huge cut even though they already got a cut originally when it was taxed.

 

[dullard]

Federal Law is depositing $10K or more in cash over a 1 year period.

Why would they report the transaction to the IRS? Is there some new banking law I'm not aware of? It's a check and not cash deposit.

Not quite. It is up to the bank. Yes, most banks report cash transactions that total more than $10k. But they are also required to report anything that is suspicious. A $20k check might not trigger the bank to do anything. $20k checks happen all the time. Or, if it seems quite unusual for your typical banking, then it might be reported just because it is quite unusual for you.

https://www.ffiec.gov/bsa_aml_infobase/pages_manual/OLM_015.htm

I just erred on the side of caution. Since the OP need to ask about depositing a large check, I assume this is an unusual transaction for him. It is up to the bank to determine if it is unusual enough that they'll report it.

 

[highland145]

Edit: How the hell do I edit thread titles now?!!?


Go to 1st post.
Thread Tools beside the Watch Thread button.
Edit title.

 

[GeekDrew]

Yeah, it's cash that would be reported. Checks aren't.

Many banks report both, or at least their policies permit them to do so. But regardless, unless the transaction is fraudulent or the money is gotten via illegal means, you have nothing to worry about.

 

[A Casual Fitz]

Many banks report both, or at least their policies permit them to do so. But regardless, unless the transaction is fraudulent or the money is gotten via illegal means, you have nothing to worry about.

True, but in my experiences it's not mandatory policy like cash is. You can report anything you want.

 

[Beer4Me]

Without going into a long story, I have a personal check for $20K made out to me. Will run into any headaches depositing that directly into my bank account? Will the bank flag/hold it for X days? What sort of trouble am I getting myself into?

Edit: How the hell do I edit thread titles now?!!?

No issue. They'll place a hold on "stepped" amounts of the check, and essentially release the entirety of it over a course of a week. Least that's how my credit union handles it.

Also, be aware that if you're placing lots of personal checks deposits over $20k over a short period of time, you're account is gonna get flagged. Big Brother will want to make sure you're not a terrorist.
See: https://en.wikipedia.org/wiki/Patriot_Act#Title_III:_Anti-money-laundering_to_prevent_terrorism

 

[ponyo]

No issue. They'll place a hold on "stepped" amounts of the check, and essentially release the entirety of it over a course of a week. Least that's how my credit union handles it.

Also, be aware that if you're placing lots of personal checks deposits over $20k over a short period of time, you're account is gonna get flagged. Big Brother will want to make sure you're not a terrorist.
See: https://en.wikipedia.org/wiki/Patriot_Act#Title_III:_Anti-money-laundering_to_prevent_terrorism

It's my experience, banks don't care about the size of the checks. Pretty much all checks I deposit in my personal are between 5 to 6 figures. And sometimes I deposit multiple checks like this several times a month into my personal. Not one question. But they do care about cash. I got a threatening letter from my bank accusing me of structuring cash deposits and not to do it again. Banks don't mess around with large cash deposits. So if you have large cash deposit, it's better to just bite the bullet and have them report you than trying to avoid getting written up.

 

[VirtualLarry]

I got a threatening letter from my bank accusing me of structuring cash deposits and not to do it again.

I wonder how my Coinbase BTC "sells" look like. I get like $30+ every two days. Should I batch those up weekly instead?

Edit: Seems to add up to just over $5000 / yrr. But they're not really Cash deposits, are they? They are some sort of ACH. Would I be at risk for "structuring"? I'm not trying to pull anything here, but I like to keep my BTC assets liquid, and I'm not currently HODL'ing them.

 

[A Casual Fitz]

I wonder how my Coinbase BTC "sells" look like. I get like $30+ every two days. Should I batch those up weekly instead?

Edit: Seems to add up to just over $5000 / yrr. But they're not really Cash deposits, are they? They are some sort of ACH. Would I be at risk for "structuring"? I'm not trying to pull anything here, but I like to keep my BTC assets liquid, and I'm not currently HODL'ing them.

No, structuring would be depositing $10,000+ in cash over the course of multiple deposits to avoid reporting.

 

[TheVrolok]

I've never noticed anything different than when I deposit a 100 dollar check, at least from my end.

 

[momeNt]

You missed one pretty important step. You need to sign the back and give it to me. Thanks.

 

[WHAMPOM]

Without going into a long story, I have a personal check for $20K made out to me. Will run into any headaches depositing that directly into my bank account? Will the bank flag/hold it for X days? What sort of trouble am I getting myself into?

Edit: How the hell do I edit thread titles now?!!?

Is this the $20K check you got overpaid by and after you deposit it need to withdraw $8,000.00 in cash to give somebody? C'mn we gotta know!

 

[daveybrat]

Is this the $20K check you got overpaid by and after you deposit it need to withdraw $8,000.00 in cash to give somebody? C'mn we gotta know!

Yes, the check was written by a Nigerian Prince. I'm sure he's good for it.

 

[A Casual Fitz]

Hahaha those still happen...

 

[Skunk-Works]

With all the bank rules, reporting and what not, you have to wonder how drug dealers or criminal enterprises operate. Cash only would be a pain in the ass.

 

[A Casual Fitz]

With all the bank rules, reporting and what not, you have to wonder how drug dealers or criminal enterprises operate. Cash only would be a pain in the ass.

Multiple accounts under different business names across different banks with structuring. I'd imagine it's a huge pain.

 

[DaveSimmons]

The bank will put a hold on it, and you'd better wait a bit after that to make sure it hasn't bounced. If this was for an eBay or Craigslist sale, wait even longer for it to bounce and the bank to claw it back.

Otherwise, no worries.

 

[Skunk-Works]

Multiple accounts under different business names across different banks with structuring. I'd imagine it's a huge pain.

I guess that makes sense. Does sound like a PITA.