Business cash deposits at post offices up over 70 per cent in January

Cash deposits at post offices were up almost 50 per cent in January compared with a year ago, when the country was in lockdown. Business and personal cash deposits totalled £2.24 billion last month, up 48 per cent compared with a year ago (£1.51 billion, January 2021).

Business cash deposits were up over 70 per cent compared with last year highlighting the effects lockdown restrictions had on small businesses ability to trade and deposit takings.

However, this January (£995 million) was the first-time business cash deposits had dipped below £1 billion since June last year.

Indicating potential consumer nervousness about the cost of living, personal cash withdrawals were up over a third (36%) compared with a year ago, with £630 million withdrawn over the counter at post offices in January (£462 million, January 2021), but were down compared with recent months.

Personal cash deposits of £1.24 billion in January were steady compared with December’s £1.27 billion.

In total, cash deposits and withdrawals amounted to £2.9 billion in January. This was £1 billion more than January 2021 (£1.9 billion).

Post Office said it always sees the highest amount of personal cash withdrawals in December for Christmas and this contributed to a 20 per cent month-on-month drop in cash withdrawals in January. As in previous years, Post Office expects withdrawals to increase in the run-up to Spring.

“Our figures show the significant recovery cash use has made since the country was in a full lockdown a year ago. The vast majority of businesses have been able to trade uninterrupted in January and rely on their Post Office which is open long hours to deposit their cash takings,” Martin Kearsley, Banking Director at Post Office, said:

“Cash withdrawals are always lower in January and we’re closely monitoring whether the focus on the cost of living could see consumers reduce the amount of cash they’re spending. People who are budgeting can always withdraw the amount of cash they need to the penny at our branches thanks to our agreement with 30 UK banks and building society brands.”