Why do banks charge a fee for deposits over $5,000 in cash? Is this a Federal Regulation that is practiced by all banks or is it just my bank's policy?
It's a bank policy, and it probably applies only to business accounts. Personal accounts don't often have such large cash transactions. Processing cash transactions takes time. More cash takes more time, and the bank teller's time is a cost to the bank. Banks also are required to do a lot of reporting and monitoring of larger cash transactions, and that adds costs.
Some banks have started charging fees for larger cash deposits. There is no universal trigger amount for this type of fee, nor is the practice itself universal. However, fees like this tend to spread among banks in a region or city once they are adopted by a few price leaders in the industry. Put another way, what works at one bank often gets imitated by other banks. You'll need to research other area banks to find one that doesn't charge a similar fee.
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It's a bank policy, and it probably applies only to business accounts. Personal accounts don't often have such large cash transactions. Processing cash transactions takes time. More cash takes more time, and the bank teller's time is a cost to the bank. Banks also are required to do a lot of reporting and monitoring of larger cash transactions, and that adds costs. 