Post Office announces extension of banking agreement covering 30 firms

Post Office has today announced the continuation of an agreement to handle bank account cash deposits and withdrawals for a further three years.

The network said this would ensure a continued ‘lifeline’ for the millions of people and small businesses nationwide that rely on cash.

The announcement follows months of negotiation amid a backdrop of bank branch closures and concerns from groups representing businesses, older people and vulnerable members of society about their ability to access, spend and deposit cash.

Under the new agreement, known as ‘Banking Framework 3’, customers of 30 bank and building society brands will continue to be able to use post offices to withdraw and deposit cash in their accounts. They can also deposit cheques and make balance queries.

The agreement runs from 1 January 2023 to 31 December 2025.

“This agreement provides a continued lifeline to the millions of people and small businesses that rely on cash nationwide,” Nick Read, Chief Executive at the Post Office, said.

“It highlights the unique and vital role that the country’s post offices play in local communities and economies. While banks are cutting their branch networks, post offices are seeing more and more deposits and withdrawals with postmasters keeping their branches open long hours and helping to draw people to our high streets.”

Post Office data shows branches have become even more important in handling cash, as the postmasters handled almost 140 million and 150 million cash transactions respectively on behalf of the banks and building societies customers in the last two years.

Since 1 January 2020 – when the current agreement came into effect – until 31 December 2021, business and personal customers have deposited over £46 billion and withdrawn over £16 billion in cash in total. In 2022, the third and final year of the present agreement, Post Office predicts it will handle over £3 billion in cash every month.

“The government recognises that physical access to banking continues to play an important role in many people’s lives. That’s why I am pleased to see that 30 banks, building societies and credit unions have again signed up to the Post Office Banking Framework Agreement,” John Glen MP, Economic Secretary to the Treasury, said.

“The Post Office, with its presence in local communities across the UK, plays an important role in the levelling-up agenda and this agreement will continue to allow 95 per cent of business and 99 per cent of personal banking customers to carry out their everyday banking, including withdrawing and depositing cash, at 11,500 Post Office branches in the UK.”