The Government Knows When You Withdraw $10,000. Here's Why
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If you're thinking about taking $10,000 or more out of your bank account, listen up: The federal government's going to find out about it.
No, you're not going to jail (probably). But there are a few things to keep in mind before you withdraw large sums.
Here's what happens when you take out $10,000 -- and why you probably don't need to worry about it.
Your bank files a government report
Per federal law, financial institutions must file a Currency Transaction Report (CTR) for any cash withdrawal or deposit over $10,000. That report is sent to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury.
The goal: To detect and prevent money laundering, fraud, and organized crime. The report also includes details like name, account info, transaction amount, and how the money was taken out -- cash, check, or some other form. A CTR is shared with other agencies, too, including the IRS.
None of this is a big deal if you're not breaking the law, but it could lead the IRS to take a closer look at your finances. As long as everything's above board, though, you should be totally fine.
Fun fact: You don't need to take money out of your savings account to earn a solid return. Right now, top high-yield savings accounts are offering APYs of 4.00% or more, which means you could earn $400 a year in interest on a $10,000 balance.
Want a better place to store your cash? Check out our list of the best high-yield savings accounts available today.
Don't try and get around it
You might think you can dodge the CTR by withdrawing $5,000 now and $5,000 later -- but you'd only be making things worse. If you do, your bank could file a Suspicious Activity Report (SAR) for smaller withdrawals if they think you're trying to game the system.
To be totally clear: Withdrawing five-figure sums out of your bank account isn't illegal or even unusual. But it doesn't happen without the government noticing, either.
If you do need to withdraw tens of thousands, do it all at once -- and if you're ever asked why, tell the truth. There's nothing wrong with withdrawing your cash, but honesty is important.
And if you're not breaking the law, you won't have a single reason to worry.
Want to earn more on your tens of thousands in savings? See our full list of the best high-yield savings accounts to earn 4.00% APY or higher.
Our Research Expert
Ryan Wilcox is a full-time Personal Finance Writer at Motley Fool Money, covering credit cards, bank accounts, investing, auto insurance, and other personal finance topics. Ryan has been writing about credit cards and savings since 2022. Before joining Motley Fool Money, he was a full-time writer at The Points Guy, where he focused on maximizing credit card rewards and travel strategies. He holds a bachelor’s degree in English and American History from the University of North Carolina at Chapel Hill, where he also spent four years reporting for The Daily Tar Heel. With a background in both journalism and consumer finance, he brings a clear and thoughtful voice to money topics. Outside of work, Ryan is likely reading, writing, or updating his Letterboxd account.