Charging customers a percentage for using its coin deposit machines was a necessary move to cover costs, HSBC Bermuda said.

Responding to queries online over the September 1 levy of 12 per cent coming into effect, a spokeswoman explained: “The fee was introduced to help offset the additional operational costs and manual-processing resources required to handle the increased volume of coin deposits through machines while maintaining a cost-effective channel at the teller counter.”

She added: “The coin deposit fee applies to all retail customers who use HSBC’s in-branch coin deposit machines.

“However, customers can continue to deposit coins free of charge over the teller counter, provided the coins are appropriately wrapped.

“All banknote deposits also remain free of charge, whether made over the teller counter, through in-branch quick deposit facilities or at HSBC’s new immediate-credit automated teller machines.”

Before September 1 and the final deployment of HSBC’s new ATMs, the bank did not charge customers for coin deposits through its in-branch machines.

HSBC is not alone in charging for the service. Butterfield Bank confirmed that its coin deposit machines at Front Street and Rosebank in Hamilton carry a fee of 10 per cent.

A Butterfield spokeswoman said the charge was waived for seniors and young savers, while depositing rolled coins remained free at its banking centres.

She added: “Coins cost more to handle than notes. They are heavy to collect, store and transport and the machines need regular servicing and secure cash collection.

“We know coins still matter to many people in Bermuda, and the fee enables us to offer the machines as a convenient option for clients who prefer them.”