UK cash deposit limits 2024: here’s what you need to know

Did you know that UK banks have cash deposit limits? That’s right, most of the major UK banks will have a ceiling on how much cash you can deposit into your account daily, monthly and even annually.

While digital transactions may be increasingly popular, we don’t live in a cashless society yet. This means small business owners need to know how much cash their bank will allow them to deposit.

In this guide, we’ll talk you through the limits for all the major UK banks and how your small business can navigate them.

Why do cash deposit limits exist?

We aren’t yet a cashless country, and plenty of business transactions still occur with notes and coins. To facilitate this, UK banks must ensure they are keeping physical money transactions safe and secure. One of the main ways they do this is by setting cash deposit limits.

Cash deposit limits are in place to prevent financial crimes, such as money laundering, fraud and theft.

While you absolutely can still deposit cash into your bank account, frequent or excessively large deposits may be a red flag to your bank. If you operate mainly via cash-in-hand, therefore, make sure you speak to your bank to explain your circumstances before you begin making regular deposits.

If your small business accepts cash payments, then you need to familiarise yourself with your bank’s cash deposit limits.

UK cash deposit limits: bank-by-bank guide

So, how much does each major UK bank allow you to deposit?

NatWest

If you bank with NatWest, the maximum amount that you can deposit into your business account is £3,000 per day over the counter, or £8,000 per day using an in-branch self-service machine.

All cash deposits are applied to NatWest business bank accounts overnight, and will therefore show in your bank account the next day.

HSBC

HSBC doesn’t currently impose cash deposit limits for customers who are depositing cash in-branch.

If you are depositing your cash at a Post Office, however, then you will face a limit of £9,000 per day for business bank account holders.

HSBC may also ask to see a form of identification before accepting frequent cash deposits.

Barclays

From 1st July 2024, Barclays is introducing new cash deposit limits. So, if you bank with Barclays, now’s the time to listen up!

Each business account will be set its own cash deposit limit by Barclays. The limit will reset every January, and even if you have multiple accounts for the same business, they’ll all count towards your limit. The bank will send you notifications once you’re close to your cash deposit limit.

If you use a personal account rather than a business account, then the limit will be set at £20,000 per year.

Royal Bank of Scotland

At the Royal Bank of Scotland, the most you can deposit into your account is £3,000 per day, or £24,000 in a rolling 12-month period.

You can deposit this cash at the Post Office or in a branch, but the limit remains the same no matter how you deposit the money.

Santander

Santander has one of the largest limits of any of the main UK banks, with a cash deposit limit of £20,000 per day in notes. If you’re paying in coins, then the limit is up to £100 per day in full coin bags only.

It’s important to note that this limit only applies to those who are depositing money in a Santander branch. If you’re using the Post Office, the limit is £10,000 per day, with a rolling annual limit of £240,000.

Nationwide

You can pay in any amount of cash over the counter at a Nationwide bank. However, if you want to use another method, there are limits.

At self-serve cash machines in Nationwide branches, the cash deposit limit is £2500 per day, with a limit of no more than 90 notes per day.

Are cash deposit limits fair?

There are arguments for and against banks implementing cash deposit limits.

From a bank’s point of view, limits help to prevent potential financial crimes such as money laundering and fraud and, according to Barclay’s, allow them to “identify any suspicious activity”.

The counterargument to this, however, is that criminals are becoming more tech-savvy, and thanks to the Covid-19 Pandemic, are already moving away from cash to digital money scams anyway.

While banks certainly have the right and reason to limit cash deposits, for small businesses there are some considerations involved.

Deposit limits mean that small business owners will need to be conscious of the amount of cash they take each day. They can’t go over the bank’s limit, but of course, there are risks of having to keep surplus cash on their own premises.

You may wish to encourage customers to use digital payments instead of paying with cash. The best way to do this is to have a good card payment system set up to make things easy and appealing for customers. There’s a downside of course, as you’ll need to pay transaction fees on payments – not something you need to consider when accepting cash.

How businesses can navigate cash deposit limits

If you’re keen to keep accepting cash, but are worried about cash deposit limits, there are some things you can do to navigate deposit limits.

• Consider opening multiple accounts across various banking groups. Keep in mind however that this would result in considerable admin work to keep track of everything. Chances are, your banks will liaise with each other to ensure you aren’t money laundering, so you’ll probably still be hit with a limit of some kind.
• Implement strict quality control measures, to ensure all cash you receive is legitimate.
• Ensure your business is set up to accept digital and card payments too, to reduce the amount of cash you need to deposit.
• Keep a paper trail of all your transactions. Some banks may be willing to offer flexibility on their deposit limit if you can prove where the money is coming from.
• Speak to your bank. If you’re concerned about regularly surpassing your cash deposit limit, set up a meeting with your bank to see what options are available.

Final thoughts

UK banks are well within their rights to set cash deposit limits, and many would agree that the added security and safety they provide are a major benefit.

For small businesses, however, it’s important to familiarise yourself with the limits set by your chosen bank and determine if this will impact your business. Setting up a digital payment system is a good place to start to reduce the amount of cash you accept.

Banks may change their deposit limits or have different rules depending on how you plan to pay in your cash, so always keep up to date with the latest updates your bank provides.