How to Pay Foreign Currency Into Your Lloyds Bank Account

You can pay foreign currency into your Lloyds account, but the bank will convert it to pounds sterling at their exchange rate

Lloyds accepts foreign currency deposits through several routes, but none of them let you keep the money in its original currency. The bank converts everything to GBP using their own exchange rate, which typically sits 2 to 4 percentage points above the mid-market rate you see online. You pay the difference as an invisible fee built into the conversion.

The method you use depends on where the money is coming from and how much it is. A cheque drawn on a foreign bank takes 10 to 20 working days to clear and costs £15 to £20. A wire transfer from abroad arrives in 2 to 5 working days and costs £20 to £30. Cash deposits at a branch are converted on the day and carry no separate fee, but Lloyds branches do not stock most currencies, so you would need to exchange it first at a currency dealer or airport.

If you receive regular payments in foreign currency, or if the exchange rate matters to your finances, a specialist international account or a separate currency account may save you money. Lloyds does not offer multi-currency accounts for personal customers, so you would need to look elsewhere for that option.

Key Takeaways

• Lloyds converts all foreign currency to pounds sterling using their own rate, which is typically 2 to 4 percentage points above the mid-market rate.
• Foreign cheques take 10 to 20 working days to clear and cost £15 to £20; wire transfers take 2 to 5 working days and cost £20 to £30.
• You can deposit foreign currency cash at a branch, but Lloyds does not hold most currencies in stock, so you will need to exchange it elsewhere first.
• Lloyds does not offer multi-currency accounts for personal customers, so if you need to hold money in its original currency, you will need to use a different bank.

Paying in a foreign cheque

A cheque drawn on a foreign bank can be paid into any Lloyds branch or through the mobile app. You photograph the front and back of the cheque and submit it through the app, or hand it to a cashier in branch. Lloyds sends it to a correspondent bank abroad for collection, which takes 10 to 20 working days depending on the country and the bank it is drawn on.

The bank charges £15 to £20 for this service. The amount credited to your account is the cheque value converted to GBP at Lloyds' rate on the day the money arrives, not the day you paid it in. If the pound strengthens while the cheque is in transit, you receive less. If it weakens, you receive more. You have no control over this timing.

Foreign cheques are slow and expensive, so they are most practical for one-off payments rather than regular transfers. If someone is paying you regularly, ask them to use a wire transfer instead.

Sending money via international wire transfer

An international wire transfer (also called a SWIFT transfer) arrives faster than a cheque and gives you more certainty about timing. The sender initiates the transfer from their bank using your Lloyds account details: your name, account number, sort code, and IBAN (which Lloyds generates from your account number and sort code).

The money typically arrives in 2 to 5 working days, depending on the sending country and the banks involved. Lloyds charges £20 to £30 to receive the transfer, though some transfers arrive with no fee if the sending bank absorbs the cost. You will see the fee deducted from the amount credited to your account.

The sender's bank may also charge them to send the money. If they choose the option to pass all fees to you (called "OUR" in banking terminology), you will pay both the sending bank's fee and Lloyds' fee. If they choose to absorb their own fee (called "SHA"), you pay only Lloyds' fee. Make sure the sender knows which option they are choosing before they send.

The conversion to GBP happens at Lloyds' rate on the day the money arrives in your account, not the day it was sent. This creates the same timing risk as a cheque, but the transfer is faster and more reliable.

Depositing foreign currency cash

You can pay foreign currency cash into your Lloyds account at any branch. The cashier will convert it to GBP at Lloyds' rate on that day and credit your account when ready. There is no separate fee for the conversion, but the exchange rate itself is the cost.

The practical problem is that Lloyds branches do not hold most foreign currencies in stock. If you walk in with euros or US dollars, the branch may be able to exchange them, but if you have a less common currency, they will likely refuse or ask you to come back when they have stock. You cannot order currency in advance for a personal deposit.

For this reason, most people exchange foreign cash at a currency dealer (like Travelex or your local independent dealer) or at an airport before paying it in. You will get a better rate at a specialist dealer than at Lloyds, so this is usually worth the extra step. Once you have pounds, you can deposit them at any Lloyds branch or ATM.

Understanding Lloyds' exchange rates

Lloyds publishes their exchange rates daily, but they do not publish the rates they use for customer transactions. The rate you receive is typically 2 to 4 percentage points worse than the mid-market rate (the rate banks trade with each other). For a £1,000 transfer, this difference can cost you £20 to £40.

You cannot negotiate Lloyds' rate or choose a different one. The bank applies their standard rate to all personal customers. If the exchange rate is important to your finances, you should compare Lloyds' actual rate (by asking the bank or checking the receipt after a transfer) against rates offered by specialist money transfer services like Wise, OFX, or Remitly. These services often charge lower margins and may save you money on larger or regular transfers.

The rate also changes throughout the day as currency markets move. If you are sending a large amount, the timing of when the money actually arrives in your account can make a meaningful difference. You have no control over this, but you can ask the sending bank to send the money at a specific time if you think the rate will move in your favour.

What happens if the transfer is delayed or rejected

A wire transfer can be delayed if the sending bank's details are incomplete or incorrect, if the receiving bank (Lloyds) cannot match the account details, or if the transfer is flagged for compliance checks. Delays of 5 to 10 working days are common when this happens.

A transfer can be rejected if your name on the Lloyds account does not match the name on the sending account closely enough. Banks use automated matching systems that flag mismatches — for example, if your middle name is missing, or if you use a nickname instead of your legal name. If this happens, the money is returned to the sender, and you receive nothing.

If a transfer is delayed or rejected, contact Lloyds when ready with the transfer reference number (called the SWIFT reference or transaction ID). The bank can investigate the status and, in some cases, contact the sending bank to resolve the issue. Do not assume the money is lost — most delayed transfers arrive eventually, but it can take 2 to 3 weeks.

Alternatives if Lloyds is not the right fit

If you receive money in foreign currency regularly, or if you need to hold money in its original currency, Lloyds is not the most cost-effective option. The bank does not offer multi-currency accounts for personal customers, so you cannot avoid the conversion to GBP.

Specialist banks and money transfer services offer better rates and more flexibility. Wise (formerly TransferWise) lets you hold money in multiple currencies and convert between them at mid-market rates with a small, transparent fee. OFX and Remitly offer competitive rates for international transfers. Some UK banks like Revolut and N26 offer multi-currency accounts with better exchange rates than Lloyds.

If you are receiving a one-off payment, Lloyds is fine — the fee and rate are acceptable for a single transaction. If you are receiving regular payments or managing money across multiple currencies, it is worth opening an account elsewhere specifically for that purpose.

Frequently Asked Questions

How long does a foreign cheque take to clear?

A foreign cheque typically takes 10 to 20 working days to clear, depending on the country and the bank it is drawn on. The time starts from the day you pay it in. Lloyds will convert it to GBP at their rate on the day the money arrives, not the day you deposited it.

Can I pay in US dollars or euros as cash?

Yes, but Lloyds branches do not always have these currencies in stock. You may need to call ahead or visit a currency dealer first to exchange the cash to pounds. Once you have pounds, you can deposit them at any branch or ATM.

What is the difference between a wire transfer and a cheque?

A wire transfer arrives in 2 to 5 working days and costs £20 to £30. A cheque takes 10 to 20 working days and costs £15 to £20. Wire transfers are faster and more reliable, so they are better for regular payments. Both are converted to GBP at Lloyds' rate on the day the money arrives.

Will I get a better exchange rate if I transfer a larger amount?

No. Lloyds applies the same exchange rate to all personal customers regardless of the amount. Specialist money transfer services sometimes offer better rates for larger transfers, so it is worth comparing if you are sending a significant sum.

What should I do if my transfer is rejected?

Contact Lloyds when ready with the transfer reference number. The most common reason for rejection is a name mismatch between your account and the sending account. The bank can investigate and may be able to contact the sending bank to resolve it. If not, the money is returned to the sender.