NatWest and Barclays are limiting the amount of cash customers can deposit into their personal bank accounts.
While banks have said the measures will help them spot “suspicious activity”, and protect customers from “financial crime”, it’s sparked concern about the future of cash.
While banks have said the measures will help them spot “suspicious activity”, and protect customers from “financial crime”, it’s sparked concern about the future of cash.
Martin Quinn, campaign director at Payment Choice Alliance told GB News: “By imposing annual £20,000 limits on cash deposits do Barclays really think that their customer base is all up to illegal activity?
“It might sound like a lot, but imagine if you sold a car, were paid in cash, nothing illegal taking place, but according to the bank, you must be laundering cash.
“The real reason I fear is that Barclays want to continue to erode the branch network, close branches and force us all online, because without a branch how can you pay cash into your account, they want to make it as hard as possible for the British public to safely deposit cash.”
Ron Delnevo, chair of the campaign committee at Payment Choice
GB News has contacted some of the major UK high street banks to see whether they are imposing cash deposit limits.
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Ron Delnevo, chair of the campaign committee at Payment Choice Alliance, said the move “ignores the needs” of individual customers and applies a “one small size fits all” policy.
He said: “If a Barclays customer wants to deposit £50,000 in cash during a year, why shouldn’t they?
“Many small businesses operate via personal accounts and have more than £20,000 in cash sales.
“This is just another attempt by a bank to force small businesses to stop accepting cash, as they try to impose ‘cashless’ on everyone in GB!”
GB News has contacted some of the major UK high street banks to see whether they are imposing cash deposit limits.
Barclays
Barclays recently updated their terms and conditions, accounting the bank will impose a £20,000 annual limit on cash deposits for those with personal accounts.
From July 1, 2024, Barclays customers will only be able to deposit £20,000 into their account for a whole year. This will then reset each January.
Even if someone has more than one personal account with them, the total amount of cash they can pay in across all of them is still £20,000.
A Barclays spokesperson has stated the move is aimed at helping the Bank “better identify suspicious activity”.
When banking at Post Office, Barclays customers with business accounts can pay in up to £10,000 in cash into their account using their debit card and PIN or business deposit card. Each business will have its own cash deposit limit every year.
HSBC has no cash deposit limit, but in some situations, they may ask customers for evidence for the source of their deposit.
GB News understands there are no current plans to change this, however the bank explained their policies are constantly under review.
NatWest
NatWest has imposed cash deposit limits at the Post Office and its Cash & Deposit Machines. NatWest states the maximum amount of cash a person can deposit into their account at a NatWest branch counter is £3,000 per day.
The maximum amount in cash that a customer can pay into their account at a Post Office or Cash & Deposit Machine (CDM) is £3,000 per day or £24,000 in a rolling 12 month period.
A NatWest spokesperson said: “We have a duty of care to protect customers, communities and society from the effects of fraud and financial crime and we’ve introduced some changes to our terms and conditions to help us to do that more effectively.
“We review our policies regularly and always seek to balance our regulatory responsibilities with the needs of our customers”.
Santander
Santander’s maximum daily cash deposit limit is £10,000, with a rolling annual limit of £240,000.
Business customers making deposits through the Post Office have an annual deposit limit of £240,000. These limits are in place to help protect both customers and us from financial crime.
Santander does not apply an overarching deposit limit in branches for either personal or business customers.
Each request will be reviewed individually and customers seeking to deposit large amounts of cash may be required to provide additional information, as per the terms and conditions of their account.
They may require information about a deposit to ensure they comply with a law or regulation that applies to them, as well as to help reduce the risk of financial crime, such as money laundering and fraud.
TSB
TSB has imposed cash deposit limits at the Post Office.
For personal accounts at any Post Office counter, the maximum amount of cash people can deposit is £1,500 per day and £10,000 annually.
For business customers the maximum amount of cash that can be deposited in total per each account is £10,000 per day and £250,000 annually.
Lloyds Banking Group
A Lloyds Banking Group spokesperson confirmed there are no cash deposit limits in branch, and there are no current plans to change this.
Each subsidiary i.e., Lloyds Bank, Halifax, and Bank of Scotland, will each have a certain amount that can be deposited when using the Post Office.
A Lloyds Bank customer paying money in with their direct debit can pay in up to £2,955 a month over Post Office counters, and up to £20,000 in a calendar year.
A Halifax customer can pay in up to £2,955 a month over Post Office counters and up to £20,000 in a calendar year.
Nationwide Building Society
Nationwide Building Society members can pay in any amount of cash over the counter with their current account card or with identification like their passport or driving licence.
In 2020, the UK National Risk Assessment of Money Laundering and Terrorist Financing highlighted an increase in criminal abuse of cash deposit services such as those offered at the Post Office.
Since then, the National Economic Crime Centre (NECC) has estimated that hundreds of millions of pounds is laundered each year through the cash deposit channel at the Post Office.
The FCA has since set expectations for banks to follow in terms of cash deposit limits.
They state: “Banks to reduce cash deposit limits, subject to their customer arrangements, to below the existing £20,000 per transaction.
“For personal accounts we proposed a limit of £1,000 per 24-hour period (which is the minimum amount law enforcement are allowed to seize under the Proceeds of Crime Act) and £10,000 per 12-month period.
“Firms should also have considered whether a tailored approach for personal customers is appropriate.
“For business accounts, we asked banks to consider adopting a tailored approach based on expected business customer activity.
“Recognising that business customer profiles between banks differ, it was not appropriate to set a single specific limit or approach but rather, to ask banks to take a data-led approach using their own customer information.”
