Lloyds Bank has recently addressed concerns regarding its cash deposit policies, following a customer’s complaint about being unable to deposit money into another person’s account.
The incident, which took place in Dunstable, Bedfordshire, has sparked discussions about banking procedures and customer expectations, particularly regarding the clarity of rules surrounding in-branch transactions.
The case has drawn attention beyond local banking circles, with Manchester Evening News also reporting on the confusion faced by customers attempting to make deposits.
As more banks shift towards digital transactions and restrict cash handling, the situation highlights ongoing changes in the UK’s retail banking sector and raises questions about accessibility for those who still rely on traditional banking methods.
Customer Confusion Over Deposit Restrictions
The issue emerged when a customer attempted to deposit cash into a friend’s Lloyds Bank account at a branch. Initially, the bank’s response indicated that while deposits to third-party accounts were not possible at the counter, they could be done through self-service deposit machines, provided the customer had the recipient’s sort code and account number.
However, upon visiting the branch, the customer reported being told that even the machines did not allow such transactions. This led to frustration and a lack of clarity on the bank’s policies. The customer expressed dissatisfaction, stating:
Your worker in the Dunstable branch said that no branch in the country would accept cash. You guys need to get clear on this. As a consumer, this has put me off ever wanting to use Lloyds products as it’s clearly not lined-up as to what you do and don’t offer.
The situation was first reported by the Manchester Evening News before being picked up by other outlets.
Lloyds Bank’s Official Clarification
Following public discussions and customer feedback, Lloyds Bank provided a clearer statement on its policy. The bank confirmed that cash deposits are only allowed into accounts owned by the person making the deposit.
If a customer wishes to send money to someone else, they must first deposit it into their own account and then transfer the funds electronically.
Lloyds Bank also highlighted the availability of multiple deposit methods, including :
- Cash and cheque deposits at branch counters
- Self-service deposit machines for personal accounts
- Cheque deposits via the Lloyds mobile banking app (for cheques under six months old)
Impact on Customers and Banking Trends
The clarification of Lloyds Bank’s policy reflects a broader shift in banking practices, where financial institutions are implementing stricter cash-handling rules to enhance security and combat financial crime.
Many banks are now encouraging digital transactions over traditional cash deposits, aligning with trends in online and mobile banking.
Despite this, some customers feel that in-person banking limitations can be inconvenient, particularly for those who rely on cash transactions or do not use online banking.
While addressing the deposit issue, Lloyds Bank is also seeking to attract new customers. The bank is offering a £175 incentive for customers switching to Club Lloyds, Club Lloyds Silver, or Club Lloyds Platinum accounts by 1 April 2025.
