This short guide from CFG outlines the types of limits on cash deposits that charities may encounter, and what steps trustees or finance teams can take if they expect to deposit large amounts of cash.
Understanding cash deposit limits for charity bank accounts
Many charities still receive donations in cash. However, depositing cash into a charity account is becoming more complex and regulated as services digitise.
One challenge is around limits on deposits, alongside additional checks designed to reduce fraud and strengthen anti-money-laundering (AML) compliance.
Cash deposit limits on charity bank accounts
Charity bank accounts often have annual limits on the amount of money that can be deposited, particularly for accounts that offer low or no banking fees. The total limit usually refers to all forms of deposit – cash, cheques, direct debits, BACS transfers etc.
For example, Lloyds’ charity account has a limit of £250,000 over 12 months.
These thresholds are typically upper limits for the account type, rather than strict prohibitions on depositing more cash.
If your charity expects to approach or exceed these limits, it is important to contact your bank in advance. In many cases, banks may be able to:
- temporarily increase deposit limits
- move the charity to a different account type
- provide alternative ways to deposit funds
Early communication with your bank can help prevent payments being delayed or accounts being flagged for review.
Informing your bank about unusual transactions
Charity Finance Group has produced a toolkit on communicating effectively with your bank, which highlights the importance of notifying banks in advance of unusual or higher-than-normal transactions. Other transactions that may be helpful to flag in advance include grant income, proceeds from the sale of an asset or property, or the receipt of a bequest.
The Charity Commission for England and Wales also advises charities to be proactive in communicating with their bank when large or unusual transactions are expected. Charities should consider:
- informing their bank in advance of large or unusual payments
- allowing extra time for overseas transfers
- being ready to share relevant due diligence or fundraising documentation, where proportionate
Taking these steps can help reduce the risk of delays or account restrictions.
Cash deposits through the Post Office
Many charities use Post Office banking services to deposit cash, particularly as physical bank branches continue to close. However, these services usually come with separate transaction limits that are worth taking the time to fully understand.
For example,
These limits apply specifically to Post Office deposits, rather than the overall daily or annual limits on the charity bank account.
Other banks have similar arrangements but may set different limits. For example, Metro Bank has a maximum cash deposit of £10,000 per transaction when using a debit card or barcode.
Charities should check with their bank and/or local Post Office branch for the exact limits that apply.
Changes to Post Office pay-in services
Some banks have restricted or withdrawn the ability to deposit cash using pay-in slips at Post Offices. These changes are linked to updated guidance from the Financial Conduct Authority (FCA) aimed at strengthening AML compliance.
While some banks have reduced access to this service, others continue to offer Post Office deposits. For example, Unity Trust Bank still supports deposits via the Post Office network for many charity customers.
For charities that rely heavily on cash donations, it is worth reviewing:
- whether your bank still allows pay-in slips or card-based deposits at the Post Office
- the daily limits that apply to these deposits
- whether alternative deposit methods are available
Share your experience
Access to cash banking services remains an important issue for many charities. CFG continues to engage with banks and regulators on barriers charities face when depositing funds.
If your organisation has experienced challenges with cash deposits, limits, or Post Office services, we would welcome hearing from you. Member feedback helps us build a clearer picture of the scale of these issues and inform our engagement with the banking sector.
Email the Policy Team