Nov 23, 2024
Given the number of Americans who struggle to make ends meet these days, coming into a large amount of money is typically a good problem to have — but what happens if you end up receiving a large check that your bank won't let you deposit?
It's common for banks — both online and brick-and-mortar — to place a limit on daily deposits. And the exact amount of that limit will hinge on your financial institution.
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If a check exceeds a given bank's limit, depositing it in person may be a way to get around any potential roadblocks. However, if you have an online-only bank, clearly, that option is off the table.
If you can’t visit a branch that doesn’t exist, that doesn't mean you're out of options completely. Here’s what you can do instead.
When your check is too large for its own good
There are a number of reasons why you may end up with a large check on your hands. It could be that you owned a property jointly with someone, like an ex-spouse, who bought you out. Or, it could be that you've received a generous gift from a family member or an inheritance.
But while an in-person deposit might help you get around a mobile limit, that won’t work for an online-only bank, which is an option many consumers use.
The American Bankers Association found that, in the last year, 23% of consumers preferred to manage their banking online.
Since online-only banks typically offer more competitive rates on products such as savings accounts and certificates of deposit (CDs) due to their lower overhead costs, it's easy to see why consumers are inclined to use them.
If depositing your check in person isn’t an option, you may be able to mail it to your online bank securely and have them deposit it from there. Your bank may even be willing to send you a pre-addressed envelope that ensures your money goes to the right place.
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It may also be possible to see if your bank will raise your deposit limit as a one-time exception, especially if you’re a long-term account-holder. A call to customer service will let you know what options you have.
Keep in mind that if you’re depositing a large sum of money at once, there may be a hold on your check while your bank takes appropriate measures to check for fraud.
So, even if you’re able to move forward with a check deposit at your regular bank, there may be a slight delay in getting that money.
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You may need to look outside your bank
If depositing your check at your current online-only bank isn't an option, you may want to look at opening an account at a physical branch.
From there, you can deposit your check, link your physical bank account to your online-only account, and transfer funds into your preferred account electronically.
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Even if you're stuck with a daily electronic transfer limit, it's an option for getting that money into your online account eventually.
One option you may want to skip, though, is using a check-cashing service. While these are a viable option for people who don't have bank accounts, check-cashing services are known to charge high fees, and you don't want a fee to eat into your windfall.
Also, if your check is large enough to exceed your bank's deposit limit, you probably don't want its cash equivalent just lying around.
While your online-only bank might allow you to make cash deposits via its network of ATMs, if you’re talking about a lot of money, that, coupled with daily limits, could be a cumbersome process.
If your bank's mobile deposit limit is on the low side, you may want to explore your options for opening a new online bank account with a higher limit.
Granted, having a large check land in your lap is a situation you may only encounter once in your lifetime, or once in a great while. But you may find it helpful to have more leeway.
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Maurie Backman has been writing professionally for well over a decade. Since becoming a full-time writer, she's produced thousands of articles on topics ranging from Social Security to investing to real estate.
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