You Can't Withdraw More Than $10,000 From an ATM. Here's Why.

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Have you ever noticed that your bank has daily withdrawal limits on the amount of cash you can take out of an ATM? Some bank accounts will let you adjust the ATM withdrawal limit if you want to take out more cash (or limit your account to a lower amount of cash per day).

But there's one big rule for how much cash you can take out of an ATM: $10,000 per day. That limit is set by the federal government. And if you try to get more than $10,000 of cash per day out of your checking or savings account , you could get in trouble with the law.

Let's look at why you can't withdraw more than $10,000 from an ATM, and what this could mean for your personal finances.

Bank customers can only get $10,000 of cash per day

Most people might not know this, because the typical bank customer doesn't need to withdraw thousands of dollars of cash from checking or savings at once. But bank customers are only allowed to take out $10,000 (or less) of currency (cash or coin) without scrutiny per day. If you need more cash than that, the bank is required to file a Currency Transaction Report (CTR) with the federal government.

Because of this $10,000 cash limit, most banks will not let you withdraw anywhere near that much money from an ATM. Many bank accounts have daily limits on ATM withdrawals that are much lower, such as $1,000 or less. (You can also choose your own ATM withdrawal limit on your bank account, but it has to be within the bank's own limits.)

Currency Transaction Reports: Fighting money laundering

Currency Transaction Reports (CTRs) are part of how banks conduct business, as part of the Bank Secrecy Act (BSA), a federal law that's intended to fight money laundering. Criminals often want to "launder" the cash they get from illegal activities by moving that cash into the financial system. Sometimes they try to do this with large numbers of cash deposits.

For example, a major U.S. bank was recently accused of failing to comply with anti-money-laundering regulations. Some of the bank's branch employees (who have since been fired and charged with financial crimes) allegedly took bribes to open fake bank accounts for over $653 million of illegal cash deposits from drug cartels.

Why bank customers like you need to know about Currency Transaction Reports

Preventing money laundering by drug cartels is an extreme example of why banks need to use Currency Transaction Reports. Most people who are trying to deposit (or withdraw) large amounts of cash are not criminals. There are many legitimate reasons for people to deposit or withdraw thousands of dollars of cash at once, such as buying or selling a vehicle, or depositing income from a cash-based small business. But banks are required by federal law to keep a closer eye on transactions involving large amounts of cash.

Be aware that the $10,000 cash limit applies to cash deposits and cash withdrawals. If you're trying to move $10,000 per day (or more) of cash into or out of a bank account, don't use an ATM -- go talk to the bank staff. The bank might ask you to show identification and explain the reason for your cash transaction. If you need more than $10,000 of cash, you can get it -- but the bank will file a Currency Transaction Report; and banks don't have to tell you when they're filing CTRs, unless you ask.

Don't worry; having a CTR filed doesn't mean you're in trouble or under surveillance. Millions of CTRs are filed each year in the background noise of the banking system. If you're not involved in crime or suspicious activities, you likely won't ever have to answer any questions about your banking activity.

But don't try to avoid having a CTR filed about your banking activity, either. If you make multiple cash transactions in one day or multiple days in a short period of time that combine to exceed (or get close to) that $10,000 limit, you can be charged with a crime called "structuring." It is illegal to knowingly set up or "structure" your cash withdrawals (or deposits) in a way that attempts to avoid triggering a Currency Transaction Report.

Bottom line

Most bank accounts won't let you take out more than $1,000 (or so) of cash per day from an ATM. But even if you have a higher ATM withdrawal limit, you can't withdraw more than $10,000 of cash per day from an ATM. That's because banks are required to report cash transactions over $10,000 with Currency Transaction Reports, as part of federal laws against money laundering and financial crime. Knowing the rules about $10,000 cash withdrawal limits can help you have a better banking experience and avoid running afoul of the law.

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