Limited cash deposits allowed in Barclays bank branches for individual account holders
In a bid to combat money laundering and prevent financial crime, US bank Barclays has introduced a new cash deposit limit for personal accounts, including children's savings accounts. The limit, set at £20,000 per year, came into force on 1st July 2024 and will refresh annually in January.
The new measure affects deposits made in bank branches, self-service devices, and Post Office branches offering USPS services. Each cash deposit counts towards the annual total, and joint account holders can deposit a maximum of £10,000 each.
This move by Barclays follows a rise in investment scams and several high-profile cases involving money laundering. In recent years, instances such as Danske Bank funnelling ill-gotten gains through a branch in Estonia and Credit Suisse laundering money for a Bulgarian drugs ring have raised concerns about the need for stricter regulations.
The cash deposit rules vary across major banks. For example, direct banks like N26 and DKB often charge around 1.5% fee for supermarket deposits and fees ranging from approximately €2.50 up to €15 at ATMs. On the other hand, traditional banks such as Deutsche Bank or Sparkassen usually allow free deposits at their own ATMs but charge fees at counters. Free deposits at direct banks are rare unless using a subsidiary bank's branch services.
NatWest has no over-the-counter limit, but you cannot deposit more than £3,000 a day, or £24,000 over a rolling 12-month period, at a Post Office or via any deposit machine. Lloyds has no in-branch limit, but people can only deposit up to £5,000 a day at mobile branches, and there is a monthly £2,955 limit, and an annual maximum of £20,000, in Post Offices.
Santander has a maximum daily deposit limit of £20,000, and an annual rolling limit of £240,000. TSB has no in-branch limit, but there are daily deposit limits of £1,500 and £10,000 per year in Post Office branches. HSBC has no in-branch limit, but customers going via a Post Office can only deposit up to £3,000 a day, and £20,000 a year. Nationwide has no over-the-counter limit, but you cannot deposit more than £2,500 into an in-branch machine per day.
The Yahoo Finance reported that the Financial Conduct Authority (FCA) wrote to more than 1,000 financial services firms in March 2024 to remind them of their anti-money laundering responsibilities. This move by Barclays is part of a broader effort to strengthen the financial sector's defences against money laundering and financial crime.
It is important to note that the new limit does not apply to business accounts. Online transactions and cheque deposits are unaffected by the change. Customers are advised to familiarise themselves with their bank's specific cash deposit rules to ensure they comply with the limits.
As Barclays continues to implement measures to combat financial crime, customers can expect a more secure banking environment. The bank is also reducing the size of its branch estate, with 57 sites set to close by 2025. These changes reflect Barclays' commitment to adapting to the evolving financial landscape and prioritising the security of its customers' funds.
