Post offices handled ‘record cash’ in August

Post Offices handled record-breaking amounts of cash in August (£3.45bn), the first
time the amount exceeded £3.4bn in one month, despite the fact it is traditionally a quieter month for cash transactions at its branches.

Cash transactions in September had initially been on track to hit even higher levels at Post
Office’s 11,500 branches, however the additional bank holiday on Monday 19 September for the state funeral of Her Majesty The Queen saw cash transactions down 94 percent compared with the equivalent Monday in September 2021 and resulted in an overall dip in cash withdrawals and business cash deposits last month.

In August, £3.45 billion in cash deposits and withdrawals were handled at Post Offices. This
was the first time the amount had exceeded £3.4 billion in a month and was up almost £140 million month-on-month (£3.32 billion, July 22). In September, £3.35 billion in cash deposits and withdrawals were handled at Post Offices.

Cash withdrawals

A record £805 million in personal cash withdrawals took place in August, up 0.5% and
breaking the previous record set in July when £801 million in cash was withdrawn. Cash
withdrawals were up almost 21% on August 2021 (£667 million).

In September, cash withdrawals totalled £785 million, a dip of 2.5 percent month-on-month.

Post Office attributes the continuing high levels of cash withdrawals to the on-going closure
of local bank branches, with people turning to the Post Office to support them with their
cash needs. As the cost of living begins to bite, people are also increasingly turning to cash to manage their budget on a week-by-week basis and often day-by-day.

Cash deposits

In August, personal cash deposits exceeded £1.4 billion for the first time, up 5 percent month-onmonth (£1.35 billion, July 22) and business cash deposits almost reached £1.2 billion, up 5.5 percent month-on-month (£1.13 billion, July 22).

In September, despite the unexpected Bank Holiday, personal cash deposits were still up
0.6 percent on August with £1.43 billion deposited by personal customers. Business cash deposits totalled £1.11 billion, down 7.3 percent month-on-month.

Cash deposits and withdrawals in September had been expected to again reach record levels before the Bank Holiday for the state funeral of Her Majesty The Queen on Monday 19 September.

On Monday 19 September, £10 million was withdrawn and deposited at the limited number
of Post Offices that were open on that day. That was down 94% (£150 million) compared with the equivalent Monday in September 2021 when £160 million was deposited and withdrawn at Post Offices.

Martin Kearsley, Banking Director at Post Office, said that despite August traditionally being a quieter month for cash transactions, that’s not what we saw at our 11,500 branches. Millions of people are continuing to come into their local Post Office every week and rely on Postmasters and their colleagues as the only ones able to fulfil all the cash needs of their local communities and businesses with many branches open seven days a week.

“The vast majority of Post Offices quite rightly remained closed on the day of Her Majesty The Queen’s state funeral as the whole country came together to mourn Her Majesty and reflect on her legacy. This did, of course, result in a dip in cash withdrawals and deposits by business customers given many retailers and businesses were also closed. We expect cash transactions to continue to exceed expectations in October and for the rest of the year.”

Last month it was announced that an additional 13 banking hubs would be created, bringing the total (including the two pilot sites and the 10 areas previously identified) to 25. The hubs are shared spaces operated by Post Office and intended for communities whose access to cash has been restricted as a result of bank branch closures.

Post Office already operates the two pilot hubs in Rochford and Cambuslang and will also be operating the additional 13.

Martin Kearsley added, “We’re delighted that we will be operating all of the banking hubs across the country that have so far been announced. Post Offices already handle well over £3 billion worth of cash every month and we’re increasingly seen as the only place on the High Street where everyday banking can be done. We’re looking forward to working closely with the Banking Hub Company and participating banks so that these hubs can be opened and start fulfilling people’s banking needs as soon as possible.”