Although the use of cash has declined rapidly in recent years, only 14% of UK businesses have gone cashless, according to a survey from LINK, the UK’s cash access and ATM network.
The same survey revealed that 77% of small and medium sized retailers still accept cash – and that 6% of in-person transactions are still cash-based.
With research showing that cash-only consumers are still prevalent, more small businesses may need to deposit cash into their business bank account.
But did you know it’s highly likely that your business bank has a limit on the amount of cash you can deposit?
Read on to find out how cash deposit limits work and how much you can deposit into some of the most popular business bank accounts.
How do cash deposit limits work?
Put simply, a deposit limit is the maximum amount of cash you can pay into your bank account at any one time.
Some banks have daily deposit limits, while others have annual or monthly limits. There may be different limits depending on where you deposit your cash (e.g. a branch or the Post Office). Some banks also place different limits if you’re depositing coins or notes.
Cash deposit limits only apply to physical cash. Any money paid into your bank digitally (e.g. from sales taken by card) won’t contribute to your max deposit limit.
Most deposit limits usually range from between £3,000 to £10,000 a day – see below for more details on the cash deposit limits of specific business bank accounts.
Why do banks set cash deposit limits?
By limiting the amount of cash customers can pay into their accounts, banks say it helps them to identify suspicious activity and financial crime such as money laundering.
However, critics of cash deposit limits point out that more financial crime has been committed digitally in recent years.
The same critics also suggest that by limiting cash deposits, banks can speed up plans to close branches and go cashless.
Business bank cash deposit limits
Here’s an overview of the cash deposit limits for businesses from some of the most popular business banking providers:
- Barclays cash deposit limit – each business account has a limit set by Barclays
- Post office cash deposit limit – £10,000 a day, up to £250,000 (but can vary by bank)
- Monzo cash deposit limit – £3,000 a month for sole traders, £10,000 a month for limited companies
- HSBC cash deposit limit – no limit in branch. £9,000 a day limit if using the Post Office
- Lloyds bank cash deposit limit – or up to £4,995 at a Post Office
- Santander cash deposit limit – £20,000 a day in notes or £100 a day in coins. £10,000 a day if using the Post Office
- NatWest cash deposit limit – £3,000 a day limit
- Halifax cash deposit limit – no limit in branch
- Revolut cash deposit limit – no cash or cheques accepted
- Royal Bank of Scotland cash deposit limit – £3,000 a day or £24,000 in a rolling 12-month period
- Nationwide cash deposit limit – no limit over the counter. Limit of £2,500 a day or 90 notes using a self-serve machine
- Metro Bank, the Co-operative Bank and TSB all have a cash deposit limit of £10,000 a day
How can small businesses manage cash deposit limits?
Deposit limits could cause your business problems if you take lots of cash from customers. Having surplus cash on your premises that you can’t deposit into a bank account could be at risk of theft.
So, how can small businesses make sure deposit limits don’t become a problem?
If you’re going to be depositing a lot of cash on a regular basis, it’s important to let your bank know as otherwise your account is more likely to be flagged for suspicious activity.
You’ll also need to check the cash deposit limit when you open a business bank account. If it seems too low and is likely to cause you problems, speak to your bank and see if they can increase it (some banks set cash deposit limits on a case by case basis). The alternative is to switch business bank accounts to a provider with a higher or more flexible limit.
It’s also important to keep an eye on your cash flow forecast, so you know at which times you’re going to have lots of cash that needs depositing. This can help you to plan when to make your deposits and how much to deposit without going over your limit.
Is cash making a comeback with consumers?
The reduction in cash use has been well-documented. According to a study from UK Finance, only 10% of all payments were cash payments in 2024. The same study revealed that contactless payments totalled 18.9 billion.
Following this trend, UK Finance expects cash use to continue to decline – expecting it to account for just 4% of all payments by 2034.
Despite more people going cashless, the FCA has plans to impose stricter rules on banks and building societies when it comes to access to cash. These are likely to require a certain number of branches and free-to-use cash machines in any one area.
More banking guides for small businesses
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