How to Buy Bitcoin with Lloyds Bank

Key Takeaway: Lloyds Bank does not offer direct crypto investment services, but customers can use it to fund licensed exchanges in the UK like Uphold, which supports over 300 cryptocurrencies. 

With secure GBP transfers and Uphold’s transparent fees, this is a simple and cost-effective way to start buying Bitcoin. Be sure to stay informed about Lloyds Bank’s crypto policies to comply with FCA regulations.

How to Buy Bitcoin with Lloyds Bank

Lloyds Bank doesn’t provide cryptocurrency trading within its banking services. However, clients can send GBP from their Lloyds account to regulated UK digital asset exchanges.

A popular option is Uphold, a multi-asset platform based in London that supports hundreds of digital currencies, fiat currencies and precious metals. Uphold is registered with the Financial Conduct Authority (FCA) and offers access to over 300 crypto assets.

Follow this short guide to buy Bitcoin using Lloyds Bank and Uphold:

1. Sign Up: Visit the Uphold website, create an account, and complete the required KYC verification.
2. Deposit GBP: In the “Funding” section, select your preferred bank transfer method and choose Lloyds Bank to deposit GBP into your Uphold account.
3. Select Bitcoin: Navigate to the Bitcoin trading section to ensure your deposit currency is set to GBP.
4. Confirm Purchase: Enter the desired amount of Bitcoin, review the transaction details, and confirm your purchase.

Lloyds Bank’s Policy on Crypto Transactions

Lloyds Bank has not established specific policies for crypto-related transactions, but clients are free to transfer funds to regulated digital asset exchanges. Here’s an overview of Lloyds Bank’s approach to crypto:

• No Direct Crypto Transactions: Lloyds does not enable direct transfers to or from cryptocurrency wallets, and deposits from external crypto wallets are not permitted.
• Only Access Regulated Exchanges: Customers can transfer funds to UK-based exchanges that adhere to Financial Conduct Authority regulations.
• Account Verification Required: To transact with crypto exchanges, users need an active Lloyds Bank account. After account setup, users can send GBP to approved platforms.

Given that Lloyds Bank’s policies may adapt with regulatory updates, it’s wise to regularly review their guidelines and ensure you’re using exchanges that meet these standards.

What Are the Fees to Trade Crypto?

When trading on popular platforms like Coinbase, users encounter trading fees exceeding 2%, with additional deposit fees up to 0.49%. These costs can significantly impact profits, especially for frequent traders.

If you’re funding an exchange account from Lloyds Bank, deposits made through Faster Payments (FPS) are typically fast and come with no fees. For trading, Uphold imposes variable spreads, with Bitcoin and Ethereum at 1%, while stablecoins such as USDT and USDC tend to have narrower spreads of 0.25%.

By utilising Lloyds Bank’s free transfers and selecting exchanges with tight spreads, you can reduce trading costs and retain more of your investment returns.

Best Deposit Methods for Lloyds

When funding your Uphold account from Lloyds Bank, the most affordable option is using Faster Payments (FPS). This option provides instant transfers, has no fees, and doesn’t impose deposit limits. Here’s a quick overview of the deposit options on Uphold:

• FPS (Faster Payments): Free, instant transfers with no deposit limits, ideal for GBP deposits from Lloyds Bank.
• SEPA (Single Euro Payments Area): Free, but processing takes 1-3 business days, and there are no deposit limits.
• Debit/Credit Card, Apple Pay, Google Pay: These are free and instant options, but they come with limits: £15,000 daily, £15,000 weekly, and £50,000 monthly.

For withdrawals, Uphold supports free bank transfers via FPS, allowing Lloyds Bank users to access their funds quickly.

What is Lloyds Bank?

Lloyds Bank, established in 1765, is a leading UK-based financial institution offering a comprehensive range of services, including personal and business banking, mortgages, savings, and insurance products. 

As part of Lloyds Banking Group, it serves over 27 million customers through its various brands, such as Halifax, Bank of Scotland, and Scottish Widows.

Conclusion

Lloyds Bank doesn’t support crypto trading, but you can use it to fund a regulated exchange like Uphold. With the bank's quick transfers and Uphold’s competitive spreads, this approach helps you manage costs and gain more value on your Bitcoin transactions.

Be sure to stay informed about Lloyds Bank’s policies and ensure your transactions align with compliance standards from regulators such as the Financial Conduct Authority.