Serena Williams as soon as tried to deposit a $1 million test at her financial institution’s drive-through. Here’s why you possibly can’t do this.

Jul 9, 2024 | blog

Tennis great Serena Williams said her focus during her early career was winning tournaments, not worrying about the checks she collected along the way.

Tennis nice Serena Williams mentioned her focus throughout her early profession was successful tournaments, not worrying in regards to the checks she collected alongside the best way. – Getty Images

Take a tip from Serena Williams: You can’t simply deposit a $1 million test at your financial institution’s drive-through.

The tennis nice realized that lesson when she certainly tried to make such a hefty deposit early in her profession. In a current interview on the favored “Hot Ones” discuss present on YouTube GOOGL GOOG — sure, this system the place visitors eat progressively spicier sizzling wings as they discuss life and profession — Williams recalled that she was so targeted on her play that she by no means thought a lot about her match winnings, be it amassing them or ultimately placing them in a checking account.

Most Read from MarketWatch

So, when it got here time to make that huge deposit, she assumed the quick-and-easy choice can be acceptable, solely to study in any other case from a financial institution worker.

“I went through the drive-through,” she mentioned. “The guy was like, ‘Uh, I think you need to come inside for this.’ ”

And that’s just about what can occur to anybody, monetary professionals advised MarketWatch.

Banks are at all times cautious when prospects current them with a large test (or a large sum of money), particularly if it’s a lot bigger than the shopper’s typical deposit quantity. That’s as a result of banks are involved about potential cases of cash laundering or anything that’s suspect, mentioned Kevin Manning, lead wealth adviser with Regent Peak Wealth Advisors, an Atlanta-based agency.

“They certainly do want your money, but, at the same, they have a responsibility to monitor for any fraudulent behavior,” Manning mentioned.

In truth, banks are required to file experiences with the federal authorities for money transactions higher than $10,000 or for any “suspicious activity that might signal criminal activity,” in keeping with what’s known as the Bank Secrecy Act.

Manning mentioned insurance policies on the right way to deal with giant deposits differ from one monetary establishment to a different, however it’s finest to contact your financial institution earlier than you present up with that $1 million test as a way to know what is likely to be requested, or required, of you. At the very least, be ready to clarify the supply the massive deposit, Manning added.

You also needs to remember {that a} $1 million deposit isn’t absolutely insured by the Federal Deposit Insurance Corp., monetary professionals observe. The FDIC locations a $250,000 restrict per depositor on accounts at any FDIC-insured financial institution.

If that considerations you, Mark Gianquitti, a director with O’Connor Capital Partners, a improvement and funding agency, mentioned the best choice could also be to unfold that $1 million amongst 4 banks, maxing out the $250,000 quantity per establishment.

Gianquitti famous that the probability of any financial institution going bancrupt is distant, “but I’d breathe a little easier knowing that the full million is guaranteed.”

Of course, for those who’re parking $250,000 or $1 million — or frankly any sizable quantity — at a financial institution for any time period, it’s vital to ensure you’re getting one of the best rate of interest potential, monetary specialists add. These days, financial savings accounts that provide no less than a 5% fee are extensively out there.

People making giant deposits would additionally profit from speaking with a monetary establishment’s private-banking division, in keeping with professionals. Such departments cannot solely focus on financial savings charges intimately, but in addition could possibly present key advantages, reminiscent of a discount on credit-card or mortgage rates of interest.

In different phrases, don’t simply make the deposit, but in addition look to construct a relationship. “Speaking to somebody,” Manning mentioned, ”is extraordinarily vital.”

Most Read from MarketWatch

MoneyMaker FX EA Trading Robot

powered by