When was the last time you went to deposit cash in the bank? It was probably a while ago. That’s because the world has become increasingly digital.
Most financial transactions these days are done over the internet. But if you ever need to deposit cash in a bank, you might find yourself asking, how much cash can I deposit in a bank in Canada?
The simplest answer to this is as much as you want. There’s no limit on how much cash you can deposit in a bank in Canada. But if you’re depositing at least $10,000 at once, the bank will report it to FINTRAC. Also, if you’re entering the country with more than $10,000, you’ll have to declare it.
Regardless of the freedom to deposit as much as you want, the bank might impose a hold on your account if you deposit a large amount.
This article looks at deposit limits for Canadian banks and reporting requirements for large deposits.
What is Deposit Limit for Canadian Banks?
There’s no limit on how much you can deposit in a bank at once. In fact, the bank is ready to accept any deposit you make.
But when you make a large cash deposit, you have to consider the processing fees involved.
For example, some Canadian banks charge a cash handling fee when you deposit a large amount, even though these fees are normally for business accounts.
Also, the bank is duty-bound to report any transaction that’s up to or exceeds $10,000 to FINTRAC.
Reporting Requirements for Large Cash Transactions
Although you’re free to deposit any amount into your Canadian bank account, there are reporting requirements.
These reporting requirements are of two kinds.
1. Reporting Requirement for Entities
By law, Canadian businesses, banks, and casinos must report all transactions above $10,000 to the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). It also makes it compulsory for these reporting entities to report any suspicious transactions that could be linked to crime or terrorism.
However, the one that affects individuals mostly is the Large Cash Transactions Report. This means that if you should deposit up to $10,000, the bank will have to report to FINTRAC. The rules guiding such reporting make it compulsory for the reporting entity in the following situations.
- Where the reporting entity receives up to $10,000 in cash in just one transaction.
- Where reporting entity receives up to $10,000 in cash through more than one transaction within 24 hours. In this case, the reporting entity will have to file a report if they know that the transactions happened within 24 hours. They originated from a single entity or individual.
The Large Cash Transaction Report rule makes it compulsory to send the report within 15 days after the transaction.
2. Bringing Cash into Canada as An Immigrant
If you’re planning to move to Canada, you’ll need money to spend while in the country. Generally, the authorities require that you provide proof of funds that show that you have enough money to support yourself and your family for between 6 to 12 months in the country.
If you choose to bring cash into the country, it’s legal, and there’s no limit on the amount you can bring. But there’s a rule similar to the large cash reporting rule for banks.
If you’re bringing more than $10,000, you’ll have to declare it in Canada.
Thus, this rule applies specifically to you as an individual, and you must declare the cash with you to immigration.
Types of Bank Account Type
If you are depositing cash in Canadian banks, you must know the types of accounts you can open with a Canadian bank. While the general view is that Canadian banks don’t limit how much you can deposit with them.
Some banks limit how much you can have in one account.
For instance, some banks in the US limit a single deposit account to $1 million and allow up to $3 million across all your accounts.
That said, the common types of accounts you can open with a Canadian bank are:
1. Chequing Account
This is a bank account that’s meant for day-to-day use. It’s the kind of account you use to pay your bills, make a purchase, deposit and withdraw at will, etc.
Such accounts usually don’t have any interest in your balance.
There are different types of checking accounts depending on your financial position and what you need it for.
2. Savings Account
This type of bank account is meant for savings. So, it’s the account you keep for money that you don’t need access to daily.
But, of course, you can still access your money whenever you need it. In addition, you earn interest on your savings account.
Savings accounts are of various types. They include basic savings accounts, youth savings, registered savings, high-interest savings, registered retirement savings plans, Registered Education Savings Plans (RESP), and Tax-Free Savings accounts (TFSA).
Each of these accounts has where they’re useful.
3. Combined Account
Some banks offer a combination of savings and checking accounts in one. In this case, one account will have the features of both.
You can write Checks on this account and earn interest on your account balance. But the interest is lower.
How Much Should You Deposit in A Canadian Bank Account
Although banks may not limit how much you can deposit, it’s not advisable to deposit too much. Apart from the possible processing fees for large transactions, there’s also the issue of deposit insurance.
In Canada, the Canada Deposit Insurance Corporation (CDIC) insures deposits of up to $100,000 for savings with member banks.
This means that if the bank fails, the government guarantees to repay the deposits plus the interest for up to $100,000 for a specified group of consumers who have their savings in the bank.
Since CDIC doesn’t cover anything above $100,000, it’s not advisable to deposit up to that amount in your bank account.
There’s no limit on how much cash you can deposit in a bank in Canada.
But if you’re depositing more than $10,000, you can expect your bank to file a report with FINTRAC.
It’s also possible that the kind of bank account you operate could limit how much you can deposit at once.