Huge change for millions of Lloyds, Halifax and Bank of Scotland customers from today ahead of ‘vital’ service axe
LLOYDS, Halifax, and Bank of Scotland are making a big change to how customers can deposit cash at Post Offices from today.
Millions of current account holders regularly rely on their local Post Office for everyday banking tasks, such as depositing cash or paying in cheques.
This has become increasingly important as thousands of bank branches have closed in recent years, making the Post Office a crucial alternative for accessing essential banking services.
The process for making a deposit can differ depending on your bank. However, most people use what's called a 'pay-in slip'.
This slip resembles a cheque and allows you to write down the amount of cash or cheques you're depositing, along with your bank account number.
Once completed, you hand it over at the kiosk, and the cashier processes the deposit in just a few minutes.
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However, starting today (June 2), customers of any of the three Lloyds Banking Group brands will no longer be able to use these slips.
Instead, they’ll need to bring their debit card, hand it to the cashier, and enter their PIN to complete the deposit.
This change comes as the banking giant prepares to completely axe the ability for customers to deposit cheques at their local Post Offices in December.
Back in March, The Sun revealed that the service will officially be discontinued for all customers on December 31.
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This means customers will need to travel further afield to visit their nearest bank branch or rely on mobile banking to deposit their cheques.
However, those looking to deposit cash only will still be able to do so at any of the Post Office's 11,500 branches.
Consumer rights expert Martyn James said: "Being able to deposit cheques simply and easily is a vital lifeline.
"With millions of cheques still issued each year, and older people relying on them far more than other age groups, this group stands to lose the most from these changes."
The change is part of a push by Lloyds Banking Group to get more of its customers using its mobile app.
It recently highlighted the development of updated mobile apps for Halifax and Bank of Scotland, which form part of the group.
A Lloyds Banking Group spokesperson told The Sun: "Most customers use our app as the easiest way to pay in a cheque, by taking a photo on their phone and letting us take care of the rest.
"Very few customers are choosing to deposit cheques in at the Post Office."
It is understood the bank will offer new support for those affected including a new freepost cheque deposit service.
The majority of the nation's major high street banking brands still permit customers to deposit their cheques at local Post Office branches.
These include Barclays, HSBC, NatWest, and Santander.
However, several other high street names have discontinued this service, or never offered it in the first place.
Building society Nationwide also does not allow customers to deposit cheques into current accounts via their local Post Office.
The same goes for challenger banks including Monzo and Starling.
How many branches has Lloyds Banking group closed?
Customers are increasingly turning to online banking to manage their finances while banks and building societies look for ways to cut costs.
Since 2022, UK bank branches have seen widespread closures, with Barclays leading the way with 397, followed by Lloyds Bank (308), NatWest (256), and Halifax (203), according to ATM operator LINK.
Looking ahead, Lloyds Bank has announced plans to close an additional 46 branches starting from June 2025, while 52 Halifax branches are also set to shut their doors.
In January, the banking giant also announced plans to enable customers to access services at any branch regardless of which brand they bank with.
For example, this means that a Lloyds Bank customer will be able to access the same services when visiting Halifax and Bank of Scotland branches, and vice versa.
What to do if your local bank is set to close
There are still a number of ways people can access basic banking services without having to venture to another town with a branch.
You can use one of the Post Office’s 11,684 branches to perform most basic banking tasks — but not to open new bank accounts or take personal loans and mortgages.
You can find your nearest Post Office branch by visiting postoffice.co.uk/branch-finder.
Many banks also offer a mobile banking service, where they bring a bus to your area offering services you can usually get at a physical branch.
Other banks use buildings such as village halls or libraries to offer mobile banking services.
It's worth contacting your bank to see what mobile services they have available, and when they might next be in your area.
New super ATMs are being rolled out across the UK where branch closures have left residents unable to access essential banking services.
These ATMs will allow customers to withdraw funds, access their balance, change PIN numbers and deposit cash.
Bank of Scotland, Barclays, Halifax, Lloyds, NatWest, Royal Bank of Scotland and Ulster Bank are already signed up to allow deposits, at the super ATMs.
Banking hubs are also being opened across the UK with 250 set to be available by the end of 2025.
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These sites typically feature a counter service operated by the Post Office as standard, enabling customers to conduct routine banking transactions conveniently.
Each hub also has a private area where customers can consult with staff representing their banks for more complex matters.
What services do banking hubs offer?
BANKING hubs offer a range of services to bridge the gap left by the closure of local branches.
Operated by the Post Office, these hubs allow customers to perform routine transactions such as deposits, withdrawals, and balance enquiries.
Each hub also features private booths where customers can discuss more complex banking matters with staff from their respective banks.
Staff from different banks are available on a rotational basis, ensuring that customers have access to a wide range of banking services throughout the week.
Additionally, customers can receive advice and support on various financial products and services, including loans, mortgages, and savings accounts.