What Is the £300 Rule and Who Will Be Affected When Lloyds Bank Activates It This September?

Lloyds Bank will become the first major UK bank to roll out the '£300 rule' on 1 September 2025, allowing customers to deposit cash using a mobile barcode at over 30,000 locations nationwide. But what exactly is the £300 rule?

According to Manchester Evening News, it's a system that allows Lloyds Bank customers to deposit up to £300 (approximately $382) in cash per day at participating PayPoint locations. A monthly cap of £600 (approximately $764) applies, with deposits possible in both coins and notes. This is the first time a high street bank in the UK has implemented such a feature.

According to Lloyds, the barcode will remain active for two hours after it's created. This gives customers enough time to travel to their nearest participating store. Most PayPoint locations are open seven days a week and operate with extended hours.

How the System Works

To use the feature, customers must access the 'Everyday' section of the Lloyds app. From there, they can select the option to deposit cash and generate a unique barcode. This barcode is what enables the PayPoint store to process the deposit.

The barcode can then be scanned at any of the more than 30,000 PayPoint stores across the country. Once scanned, the cash is credited to the customer's bank account, usually within minutes.

Deposits are not restricted to just major towns or cities. Statistics provided by PayPoint indicate that 99.5% of the UK population lives within one mile of a PayPoint store. These locations are typically found in newsagents, convenience stores, and petrol stations.

In addition to banking, PayPoint outlets offer other services such as parcel collection, utility bill payment, and mobile phone top-ups. This makes them a convenient option for people looking to carry out multiple tasks in one trip.

Who Will Be Affected?

The change applies to all Lloyds Bank personal account holders who use the mobile app. It is particularly useful for customers who live in areas with limited access to physical bank branches. It also benefits those who prefer to deposit small amounts of cash regularly without queuing at a traditional bank counter.

Customers of Halifax and Bank of Scotland, both part of the Lloyds Banking Group, can continue to use their own branch networks for deposits. Likewise, existing cash machines operated by Lloyds will remain in service for both withdrawals and deposits.

Additionally, customers still have access to 11,500 Post Office branches across the UK, which continue to offer standard banking services. These include cash deposits, withdrawals, and balance enquiries, even if the customer's local bank branch has closed.

Why Lloyds Introduced the £300 Rule

According to Gabby Collins, payments director at Lloyds Bank, the initiative is part of the bank's push to offer more flexible banking options. The aim is to make everyday transactions easier and more accessible, particularly in areas where traditional branches have been reduced.

Nick Wiles, CEO of PayPoint, noted that the partnership allows Lloyds customers to benefit from a wide-reaching network. Many of the services offered at PayPoint stores operate well beyond typical banking hours.

The deposit system is designed to offer added convenience while maintaining security and speed. Funds should appear in the customer's account almost instantly, and always within a maximum of two hours.

What Customers Need to Know

The new service went live on 1 September 2025. To use it, customers will need the Lloyds mobile app and access to a local PayPoint store. The barcode generated must be used within two hours, and deposits are limited to £300 per day and £600 per month.

Customers can find their nearest participating PayPoint location using the Lloyds app or by visiting the PayPoint website. All other standard banking services will continue unchanged at Lloyds branches, Post Offices, and cash machines.