There are a number of things to consider before depositing $1 million into the bank, such as what kind of account to put the money in and possible tax consequences of investing the money. The type of deposit dictates the amount of time the bank will delay the availability of funds. If you deposit cash, the funds are available for use the same day. If you deposit a check, you must wait until the deposit hold expires before using the funds.
Prepare Your Deposit
If you have cash, find a bank deposit slip. In the "Cash," box, write $1 million. Write the same figure at the bottom of the slip as the total deposit amount. Arrange the money into straps containing $100 bills. Since you'll have 10,000 $100 bills, you'll need to find an oversized bag or suitcase to stow the money in (or maybe even two bags). If you have a check, complete the deposit slip in the same way except that you must list the amount of the deposit under "Checks" rather than cash. Sign the back of the check.
Head to the Bank
Hand your deposit slip to the teller. If you have cash, ask the teller if you can hand the money over in a private office to prevent other customers from seeing the amount of cash you have. You must answer questions about the cash deposit so that the teller can complete a currency transaction report (CTR). The Internal Revenue Service requires financial services employees to complete CTRs for cash deposits in excess of $10,000. The questions you must answer pertain to your identity and the source of the funds. Request a deposit receipt. You cannot get a copy of the CTR.
If you deposit a check, the teller must place a hold on it. $100 becomes available the next business day, $4,900 after two business days and the balance becomes available after seven business days. Request a hold notice and a receipt from the teller.
Talk to the Sales Representative
Go and speak to a branch sales representative. Explain that you just deposited $1 million. Ask the representative for ideas on how best to invest the money. The representative may make an appointment for you to speak to one of their financial advisors, if they offer this service. Once the money posts at midnight, if cash, or after the hold period if a check, you can invest it in other accounts.
Tips and Warnings
Many people who make large deposits choose to invest some funds in tax-deferred products such as annuities or tax-free municipal bonds. These products offer tax savings and potentially higher returns than bank products but are not federally insured.
The insurance offered to banks by the Federal Deposit Insurance Corporation, and credit unions by the National Credit Union Administration, only extends to $250,000 per account owner, per bank. You can add coverage if you name pay-on-death beneficiaries or add co-owners to your account. Each additional person adds $250,000 of coverage to your accounts