Expect to Pay for Depositing Cash


$100 bills in $10000 straps, stacked in a pyramid

Image via Wikipedia

If you happen to be in a business that handles a lot of cash, you are probably not a stranger to cash processing fees.  Companies such as convenience stores, fast food businesses and restaurants, car washes, car dealerships, etc. often deposit a fair amount of cash each month and they pay a premium for making these transactions.  Most folks don’t understand why they pay a premium to put money in the bank.  The answer is based on the fact that the actual handling of cash and coin is an expensive proposition for a bank.  The currency must be counted and verified.  If the deposit is over $10,000 and the business is not “exempted” by the bank, then the bank must file a Currency Transaction Report (CTR) to remain in compliance with the government regulated Bank Secrecy Act.   The coin and currency also must subsequently be broken down into straps and coin rolls which requires additional counting.  It may not seem like it, but tellers spend a good amount of time handling cash and it is one of the most costly activities they can be involved in.

For that reason, banks generally do not discount the handling of cash.  You will typically pay a fee per $100 in cash processed, over a certain allowable amount.  For instance, Bank of America Oregon does not charge for the first $10,000 in cash but everything over that amount is assessed a fee of $0.20 per $100.  Most banks will allow you from $5,000 to $20,000 for free (depending on the package you are in) and then charge from around $0.12 to $0.30 per $100 over the limit.  So you can see how a cash intensive business can quickly rack up processing fees.

Companies needing the bank to provide them with coin and currency will pay for that service as well.  Most banks charge a change order fee of around $2-3 per order and they charge additional fees per $100 or per currency strap.  Look to pay for each roll of coin as well.  Many banks will also charge you to process a night deposit and an even higher fee to process a night drop from a lockable canvas bag.

If you do handle a lot of cash, don’t rule out using a community bank.  They often will not have established fees for the actual change order or for processing your locked bags or night drops.  Regardless of where you bank, make sure you ask for a full disclosure of expected charges, including coin and currency processing fees.

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