£300 Daily Cash Deposit Rule: Lloyds Becomes First UK Bank to Introduce It from September 2025

Lloyds Banking Group has rolled out a new way to pay cash into your account that effectively creates a £300-a-day framework for shop-counter deposits across the UK. Using a “barcode cash deposit” generated in the Lloyds, Halifax, or Bank of Scotland mobile app, customers can now hand over notes and coins at tens of thousands of PayPoint convenience stores—without visiting a branch or Post Office counter. The feature launched in late August and is being promoted and scaled through September 2025, making Lloyds the first major UK bank to formalise a £300 per-day, £600 per-month limit for this specific deposit route.

Lloyds confirmed that this is a UK banking first, introducing the new service through its app this month, enabling deposits at over 30,000 PayPoint locations nationwide.

What the new £300 rule actually means

The “£300 rule” is not a universal cap on all cash deposits. It applies specifically to cash paid in via PayPoint using the barcode you generate in the Lloyds, Halifax, or Bank of Scotland app. Here’s what sits inside the rule:

• Daily limit: Up to £300 in notes and coins per day (via PayPoint with the barcode).

• Monthly cap: Up to £600 total per calendar month (via this same route).

• Barcode validity: The app-generated barcode is valid for two hours.

• Processing time: Deposits typically appear within minutes (and always within two hours).

• Network coverage: More than 30,000 PayPoint locations are available nationwide, with 94% of them open seven days a week.

With 99.5% of the UK population living within one mile of a PayPoint store, the accessibility of this new feature is clear.

Why Lloyds introduced this now

Several converging trends explain the timing:

• Branch traffic keeps falling. Lloyds has continued to reduce branch numbers as customers rely more on mobile and digital services.

• Cash use is shrinking, but still vital. While digital wallets dominate, cash still represents a critical part of budgeting and resilience.

• Proximity matters. PayPoint stores are closer and open longer than most bank branches—ideal for fast, small-value deposits.

The new service ensures that even as digital adoption grows, cash users aren’t left behind.

How it works step-by-step

1. Open the app (Lloyds, Halifax, or Bank of Scotland) and head to the “Everyday” section.

2. Select “Deposit cash at PayPoint” and choose how much you want to deposit (up to £300).

3. A unique barcode is generated, valid for two hours.

4. Visit a nearby PayPoint outlet, hand over your cash, and present the barcode.

5. Your deposit is processed instantly, usually showing in your account within minutes.

Fees and small print

There’s no charge for using PayPoint to deposit cash via the barcode. The limits—£300 daily, £600 monthly—apply only to this method, not to other ways of depositing cash.

What about the Post Office, ATMs, and branches?

The barcode service is an addition, not a replacement. Customers can still:

• Use branches of Lloyds, Halifax, and Bank of Scotland for larger cash deposits and everyday services.

• Access 11,500 Post Offices nationwide for deposits, withdrawals, and other services.

• Visit Banking Hubs, staffed by the Post Office, available across the UK for in-person services.

• Use Lloyds’ cash in and out machines across the country for quick, secure deposits and withdrawals.

This means Lloyds customers now have more options than ever before for managing their cash.

Who benefits most

• Households or small businesses handling small amounts of cash.

• Customers living far from bank branches.

• People who value evening and weekend opening hours.

• Those who want to bank while running errands—dropping parcels, paying bills, or buying groceries.

Real-world scale already emerging

PayPoint reported deposits exceeding £1 million within weeks of launch, showing rapid early adoption of the feature.

At-a-glance: deposit routes available to Lloyds-group customers

Everyday convenience

PayPoint outlets are not just for banking—they also allow customers to pay bills, return or collect parcels, buy gift cards, or top up mobiles. The barcode deposit feature fits naturally into these everyday tasks.

Customers can find their nearest PayPoint outlet using the Lloyds app or the PayPoint website.

Executive perspectives

Gabby Collins, Lloyds’ Payments Director, explained:
“We’re always looking for smart ways to make banking more flexible and give customers more choice. Our latest app feature now allows customers to pay in cash at their local PayPoint in just a few minutes – ideal if they are popping in for milk or dropping off a parcel. With this new innovation, no other UK bank offers as many ways to manage money as Lloyds.”

Nick Wiles, CEO of PayPoint, added:
“Our leading retail network provides a vast range of essential services at the heart of communities across the UK, for everything from banking, utility, parcel, cash and government services.”

The bigger consumer picture

Even though cash now represents about 12% of transactions in the UK, it is still vital for budgeting, rural communities, and resilience when digital networks go down. By adding PayPoint deposits, Lloyds reinforces the country’s cash infrastructure while encouraging everyday digital use.

Pros and cons at a glance

Pros

• Convenience and speed

• Free to use

• Accessible almost everywhere

• Fits with everyday errands

Cons

• Capped at £300/day, £600/month

• Requires app access

• Not ideal for businesses with heavy cash handling

Final thoughts

Lloyds’ barcode-based deposit service is a milestone for UK retail banking. By giving customers the power to bank while running daily errands, Lloyds has made cash more accessible than ever—without undermining branches, Post Offices, or Banking Hubs. For many households and small businesses, this service will quickly become part of everyday life.