Yes, you can pay foreign currency into Lloyds, but the bank converts it to pounds sterling and charges a fee
Lloyds accepts foreign currency deposits through its branches and online banking, but you cannot keep money in a foreign currency in a standard Lloyds current or savings account. The bank will convert whatever you deposit to British pounds at its exchange rate and credit your account in GBP. You will pay a conversion fee on top of the exchange rate difference, which means the amount you receive will be less than the nominal value of the currency you hand over.
The exact fee and exchange rate depend on the currency, the amount, and the deposit method you use. Lloyds does not publish a single conversion rate or fee schedule online — you need to ask the branch or call customer service for a quote before you deposit.
Key Takeaways
- Lloyds converts all foreign currency deposits to pounds sterling automatically; you cannot hold foreign currency in a regular account.
- The bank charges a conversion fee on top of the exchange rate spread, so you lose money on the transaction.
- You can deposit foreign currency at a Lloyds branch in cash, or by mailing a cheque in a foreign currency to the address Lloyds provides.
- Getting a quote for the fee and rate before you deposit helps you decide whether the cost is worth it for your situation.
- If you regularly receive or send money in a foreign currency, a specialist money transfer service or a multi-currency account may cost less than repeated Lloyds conversions.
Deposit methods: cash at a branch or foreign cheques by post
If you have foreign currency in cash, you can take it to any Lloyds branch and ask to deposit it. The branch staff will weigh and count the notes or coins, quote you the conversion fee and exchange rate, and credit your account in pounds once the transaction is complete. This usually happens the same day or within one business day.
If you have a cheque in a foreign currency, you can mail it to Lloyds with a paying-in slip. Write the cheque details on the slip, include your account number, and send both to the address Lloyds provides when you request a foreign cheque deposit form. The cheque will be sent to the issuing bank for clearance, which can take two to four weeks depending on the country. Once cleared, Lloyds converts the amount to pounds and credits your account.
You cannot deposit foreign currency through Lloyds' online banking or mobile app — you must use a branch or post.
What the conversion costs you
Lloyds charges two separate costs on a foreign currency deposit: the exchange rate margin (the difference between what the bank pays for the currency and what it charges you) and an explicit conversion fee. Neither figure is fixed or published in advance.
For example, if the mid-market rate for US dollars is 1.27 GBP per USD, Lloyds might offer you 1.22 GBP per USD and then charge a flat fee of £15 to £25 on top. On a $1,000 deposit, that means you receive roughly £1,220 minus the fee, rather than the £1,270 you would get at the mid-market rate. The exact fee depends on the currency and the branch, so always ask for a quote in writing before you hand over the money.
Cheque deposits may carry a higher fee than cash deposits because of the clearing time and the bank's handling costs.
When Lloyds conversion makes sense and when it does not
Lloyds conversion is most practical if you have a small amount of foreign currency left over from a trip or a one-time payment, and you want to deposit it without opening a new account. The fee is usually £15 to £40, so if you are converting less than £500, the percentage cost is noticeable but not catastrophic.
If you regularly receive money from abroad, send money overseas, or hold a balance in a foreign currency, Lloyds conversion will cost you significantly more over time. A specialist money transfer service like Wise, OFX, or Remitly charges lower fees and offers better exchange rates for regular transfers. Some of these services also offer multi-currency accounts where you can hold money in USD, EUR, or other currencies without converting to pounds immediately.
If you are a Lloyds International Banking customer (a premium service for expatriates and high-net-worth clients), you may have access to better exchange rates and lower fees than a standard account holder. Ask your relationship manager whether you may have access to.
How to get a quote before you deposit
Call Lloyds customer service on 0371 664 0000 (or your branch directly) and tell them the currency, the amount, and whether you are depositing cash or a cheque. They will quote you the exchange rate and the fee. Write down the quote and the date it was given — rates change daily, so the quote is usually valid for one business day only.
If the quote is acceptable, you can deposit the same day at a branch (for cash) or post the cheque within the validity period. If you wait longer than one business day, call back for a new quote.
Some branches may ask you to bring the currency in person so they can inspect it and quote you on the spot. This is normal — it ensures the notes or coins are genuine and in acceptable condition.
What happens if the currency is damaged or unusual
Lloyds will not accept foreign banknotes that are torn, stained, or heavily worn. If a note is damaged, the bank may refuse it or quote a lower rate. Coins are accepted but are often quoted at a lower rate than notes because they are harder to process.
Commemorative coins, old currency that is no longer in circulation, or very large denominations may not be accepted at all. If you are unsure whether your currency will be accepted, bring it to a branch and ask before you commit to the deposit.
Alternatives to Lloyds for foreign currency deposits
If you need to deposit foreign currency regularly or in large amounts, consider opening an account with a specialist provider. Wise offers a multi-currency account where you can hold and convert money in over 40 currencies at mid-market rates with a small markup. OFX and Remitly are designed for international transfers but also accept deposits. These services often have lower fees than high street banks for currency conversion.
If you are receiving regular payments from abroad, ask the sender to use a money transfer service instead of a bank transfer. This often costs less than converting at Lloyds and reaches your account faster.
Some international banks with UK branches (such as HSBC or Barclays) offer multi-currency accounts as standard, which may be worth considering if you hold multiple currencies regularly.
Frequently Asked Questions
Can I keep money in a foreign currency in my Lloyds account?
No. Lloyds converts all foreign currency deposits to pounds sterling automatically. If you need to hold money in a foreign currency without converting, you need a multi-currency account from a provider like Wise or HSBC, not a standard Lloyds account.
How long does it take for a foreign currency deposit to show in my account?
Cash deposits usually appear the same day or within one business day. Cheques take two to four weeks because they must be sent to the issuing bank for clearance before Lloyds converts and credits the amount.
What if I deposit foreign currency and the exchange rate drops the next day?
Once Lloyds has quoted you and you have deposited the currency, the rate is locked in. You receive the amount based on the rate and fee you were quoted, regardless of what happens to the exchange rate after that. This protects you from rate movements, but it also means you cannot benefit if the rate moves in your favour.
Do I need to tell Lloyds where the foreign currency came from?
For small personal deposits, no. For large amounts (typically over £10,000), Lloyds may ask you to explain the source as part of anti-money-laundering checks. Be prepared to show evidence such as a receipt, invoice, or letter from an employer if you are asked.
Is there a limit to how much foreign currency I can deposit?
Lloyds does not publish a limit, but very large deposits (over £50,000) may require advance notice and may be subject to additional checks. Call your branch to discuss if you are planning a large deposit.