Financial Institution Lists (2024)

FAQs

What is the $3000 rule? ›

Rule. The requirement that financial institutions verify and record the identity of each cash purchaser of money orders and bank, cashier's, and traveler's checks in excess of $3,000.

The definition of a financial institution typically describes an establishment that completes and facilitates monetary transactions, such as loans, mortgages, and deposits. Financial institutions are a place where consumers can effectively manage earnings and develop financial footing.

Your money is safe in a financial institution because the government insures your money. The FDIC (Federal Deposit Insurance Corp) and the NCUA (National Credit Union Administration) make sure that up to $250,000 per account will be safe—that's a lot of cash!

Depositing a big amount of cash that is $10,000 or more means your bank or credit union will report it to the federal government. The $10,000 threshold was created as part of the Bank Secrecy Act, passed by Congress in 1970, and adjusted with the Patriot Act in 2002.

Smurfing involves splitting large sums of money into smaller, more easily concealable amounts of illegally obtained funds to avoid detection by authorities, while structuring involves deliberately depositing cash in smaller amounts to avoid reporting requirements.

The “big four banks” in the United States are JPMorgan Chase, Bank of America, Wells Fargo, and Citibank. These banks are not only the largest in the United States, but also rank among the top banks worldwide by market capitalization, with JPMorgan Chase being the most valuable bank in the world.

The most common types of financial institutions include banks, credit unions, insurance companies, and investment companies.

The major categories of financial institutions are central banks, retail and commercial banks, internet banks, credit unions, savings and loan (S&L) associations, investment banks and companies, brokerage firms, insurance companies, and mortgage companies.

APY, meaning Annual Percentage Yield, is the rate of interest earned on a savings or investment account in one year, and it includes compound interest. To help people compare accounts and get an accurate estimate of possible earnings, banks are required to prominently display account APYs.

It doesn't remain locked away in the bank vault – instead, the money you deposit into a savings account is used by the bank to make loans to other people and businesses in your community so that they have the money to pay for big expenses like houses and cars, or even to operate a business.

What do financial institutions do with people's money? ›

Although banks do many things, their primary role is to take in funds—called deposits—from those with money, pool them, and lend them to those who need funds. Banks are intermediaries between depositors (who lend money to the bank) and borrowers (to whom the bank lends money).

The discovery in a home may trigger not only interest in amount, but source, and in some cases, what can be done to separate that cash from the holder. OK, this may sound a little “iffy.” There is no monetary limit on what amount of cash you can keep in your residence.

If you plan to deposit more than $10,000 at a bank, remember that the transaction will be reported to the federal government. This enables authorities to track potentially suspicious activity that may indicate money laundering or terrorist activity.

In summary, wire transfers over $10,000 are subject to reporting requirements under the Bank Secrecy Act. Financial institutions must file a Currency Transaction Report for any transaction over $10,000, and failure to comply with these requirements can result in significant penalties.

Federal law requires a person to report cash transactions of more than $10,000 by filing Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business.