UK bank issues warning to customers as popular service is axed

Staff
By Staff

Lloyds Bank customers have been issued a warning as one of their key banking services is set to be axed at the end of the year, with the bank confirming the change

Signs outside branches of a Lloyds Banking Group Plc bank, a Barclays Bank Plc bank, a NatWest Group Plc bank and a HSBC Holdings Plc bank
Cheque users have been issued a warning from Lloyd Bank of new changes in December(Image: Bloomberg via Getty Images)

Lloyds Bank has issued a warning to its customers that they will lose one of their key banking privileges at the end of the year.

The bank confirmed, in response to a customer query, that people will no longer be able to cash in cheques at their local Post Office from December 31, 2025.

The change was revealed when a customer contacted Lloyds Bank as their local branch is due to close in October. They were eager to know how they could deposit cheques or cash, convert a cash note into coins and access their statements. It comes after news that Nationwide will pay bonus £760 into accounts of customers who do one thing.

London, United Kingdom - February 02, 2019: People walk in front of Lloyds Bank branch at Victoria. It is British retail and commercial bank founded 1765 with more than 1300 sites (as of 2019) in UK
Lloyd Bank claims their decision to be down to the lack of customers using the Post Office service to deposit cheques(Image: Lubo Ivanko via Getty Images)

In response, Lloyds – who serve approximately 28 million customers – clarified that they could deposit cash at their local Post Office branch using their debit card, and they could cash in cheques via the mobile app.

They provided further advice on using the app to deposit a cheque, which involves taking a photograph of the cheque for it to be processed.

Customers should ensure that there is a dark background behind the cheque to contrast the edges of the slip, and that there is ample light on the cheque so all its elements can be captured by your device camera.

Lloyds stated that customers can deposit coins at the Post Office, although this is limited to £250 for any single deposit of coins.

If the coins are worth less than £1, the Post Office can only accept full bags of coins, so it will need to total up to the amount indicated on the bag. If you are depositing £1 and £2 coins, these can be paid in using partly filled bags, if the coins are separate, reports the Liverpool Echo.

Lloyds Bank said: “From December 31, you won’t be able to deposit cheques at the Post Office anymore. You can continue to deposit cheques through the mobile banking app or in a branch. If these options don’t work for them, we have a postal cheque service available.”

Lloyds Bank, alongside its sister brands Halifax and Bank of Scotland, all under the Lloyds Banking Group umbrella, will axe their cheque deposit facilities at the Post Office.

The group previously stated that the choice to scrap the service was driven by the minimal number of customers using the Post Office for cheque deposits.

In separate financial news, Nationwide Building Society has wrapped up its £50 bonus payments scheme, dubbed the Big Nationwide Thank You, with millions of members having collected their bonuses either straight into their accounts or through posted cheques.

One customer, who had mislaid the posted cheques intended for their children, asked about securing replacements. A spokesperson from the building society replied: “If the customer calls or pops into a branch we will arrange a replacement to be posted within 10-15 days.”

Note that members who have received a cheque must ensure they cash it before the deadline of January 1, 2026.

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