Can Lottery Winnings Be Direct Deposited?

Winning the lottery is just as exciting as it is stressful. Learn how to deposit your millions right into your bank account without the hassle.

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Adam Moelis
Sep 12, 2022
7 min read

If you’re lucky enough to have hit the jackpot on a huge lottery, one of the first thoughts you probably have is “When and how do I get my money?” There are a few steps you’ll need to concur before you can have access to your big winnings, and one of those is figuring out how to actually access your money in the first place.

Is one of those options direct deposit? Here’s everything you need to know.

Lottery Winnings Can Be Direct Deposited

In some cases, at least. Many states allow you to deposit prizes of over $5,000 electronically into your bank account. However, some states, such as California, do not allow direct deposit. And even if your state does allow direct deposit, it might not always be the best idea.

The main reason is that depositing extremely large sums of money into your bank account can leave your money unprotected. If you have less than $250,000 total in your savings account, it means that this money is FDIC insured. The FDIC is the Federal Deposit Insurance Corporation. If something happens to your bank where it no longer exists or goes bankrupt, the FDIC ensures that you’ll still have the same amount of money when you open up a new bank account.

Some banks have higher caps, so if you win a large sum of lottery money, you’ll want to consider switching to a higher-yield bank or splitting your winnings amongst multiple bank accounts.

If you live in a state that doesn’t allow direct deposit, or if you won a sum of money smaller than $5,000, there are still options that can make it easy and efficient for you to get your money.

How Long After Winning Does the Money Go Into Your Bank Account?

After winning the lottery, you’ll file a claim to get your prize. Regardless of how you choose to receive your lottery winnings, you can expect to receive your first check in the mail within six to eight weeks from the date that you filed the claim.

If you choose a lump sum payment, you’ll receive the full prize amount (minus taxes) in one fell swoop. If you choose annuity payments, you’ll receive 30 graduated payments over 29 years.

However, if you win smaller denominations of prizes, you might be able to get your money instantly. Any prize less than $600 can be claimed at a lottery retailer to be paid out in cash immediately (as long as they have the cash ready to hand out).

If you win anything over $600, you can either mail your ticket to the state’s lottery office or go to the office in person. If you win a jackpot, we highly recommend you visit the office in person rather than sending your ticket via mail.

What’s the Procedure for Direct Depositing Your Winnings?

When you file a lottery claim form to receive your money, you’ll have the option to decide how to receive your money. If you elect a direct deposit, you’ll just need to supply your bank account number and routing number so that the money is transferred exactly where it needs to go.

If you are unable or unwilling to direct deposit into your account, one option you do have is the ability to send checks directly to your financial institution.

After you win the lottery, you need to file a claim form and mail it to a lottery district office or take your winning ticket to the claims office in person. You can take one lump sum payment for your lottery winnings or divide it into regular annuity payments that get paid out over time. Regardless, the district office will give your first check.

After that, future payments can be sent directly to your financial institution for them to deposit on your behalf. Of course, you can also have the checks mailed to your home address. Neither one is necessarily better than the other, but sending them right to your bank can make it easier on your life and make it as close to a direct deposit as possible if direct deposit isn’t available in your state.

What Banks Accept Lottery Winnings?

Technically, any bank can take and receive your lottery winnings because there is no limit on how much money you can deposit. However, it might be a good idea to choose a private bank to handle this cash sum.

Private banking offers wealth management services, financial services, and other products to individuals with a high net worth. This also includes portfolio management, insurance, estate planning, and more. That’s a lot of big words, so the takeaway is that a private bank is more equipped than a consumer bank to help millionaires and billionaires handle their money responsibly and safely.

Some examples of private banks that are well-suited to take your lottery winnings include Citigold Private Client, HSBC Premier, Chase Private Client, and Union Bank Private Client.

What Should You Do After Winning the Lottery

Besides jumping up and down and screaming with pure excitement, there are a couple of key components between holding your winning ticket and getting the money into your pocket.

First, be quiet about winning. Make a plan for who you’re going to tell and how you will tell them. People change when money is at stake, and you never know how people around you might try to manipulate you. It’s a harsh reality, but it’s important to prepare for.

Next, be prepared for media buzz. The only states that allow winners to remain anonymous are Delaware, Maryland, Texas, and South Carolina. All other states put your name into the public record, so you’ll need to be ready to be a part of some news stories.

This is where hiring a lawyer can come into play. Not only can they help you navigate the legal jargon coming your way when claiming your prize, but they can also help you get over the media buzz quickly so you can get on with your life.

Also, make copies of your ticket and sign the back of the original ticket. The copies can be sent to lawyers and accountants, while your signed original copy ensures no one else can submit it on your behalf. Then lock up that ticket in a super secure spot.

You’ll need to be prepared to pay some taxes, too. All winnings of over $5,000 are subject to tax withholding by the IRS. They’ll keep around 24% of your total winnings. This feels like a major hit, but remember that these taxes can go towards funding important infrastructure to keep your state happy and healthy.

The exception is if you live in California or Delaware – neither of these states tax your lottery winnings.

Soon, you’ll be ready to receive your money – but there’s one more decision that you’ll need to think about.

Should You Take the Lump Sum or the Annual Payments?

You’ll have two options for how you want to receive your lottery payments:

  • Lump sum: You’ll receive the entire jackpot prize in a single payment. Of course, taxes will be removed prior.
  • Annuity / annual payments: You’ll receive a graduated payment of your winnings every year for 29 years. Think about your jackpot prize (minus taxes) being split up into 30 payments that you’ll receive over time.

There are pros and cons to both. With the lump sum payment, it ensures that you’ll be able to enjoy every cent of your winnings to do with as you please. However, it is more likely that you’ll be careless with your spending, and you may lose all of that money more quickly. If you’re a gambler, it might be a good idea to sway away from the lump sum payment.

For annuity payments, you’re more likely to be responsible with your funds over time. However, as morbid as it sounds, there’s a chance that you might die before you ever get to enjoy all of your winnings. If you do die, the rest of the winnings will go to your beneficiaries or dependents.

How Yotta Is Like the Lottery

Just because you already won the lottery once doesn’t mean you can’t do it again. Yotta is like a no-lose lottery that allows you to win prizes for saving, spending, and managing your money.

Here’s how it works: for every $25 you have in your account, you earn one ticket each and every week. So if you have $100 in your account, you get four tickets weekly. And if you’re a lottery winner, that can correlate to many chances to win!

Numbers are drawn daily at 9 p.m. Eastern to see if your ticket matches. Depending on how many of your numbers get matched, you can win things like $5,000, a Tesla, or even the $10 million grand prize.

But win or not, you never lose your FDIC-insured deposits, and you’ll always earn more interest than most banks with 0.20% guaranteed. 

You can’t lose. Get started today to finally see what it’s like to make saving, spending, and managing your money fun.


Direct deposit is the easiest and safest way to get money into your bank account, and certain states allow you to deposit your lottery winnings directly. However, not every state supports direct deposit, so you’ll need to find other means.

Many states allow you to send your lottery checks to your financial institutions for them to deposit on your behalf. Additionally, you can elect a single lump sum payment to be deposited into your account right away rather than needing to be responsible for 30 annuity payments over time.

You can expect to get all your money within just a few weeks, and after you conquer the media buzz and legal hurdles, you can finally start to enjoy your newfound wealth.

If you’re looking to press your luck without the fear of losing money, Yotta is your no-lose lottery that pays out prizes just for saving and managing your money. Get started today and see why over 500,000 users are choosing Yotta for spending and saving.

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