Market News

Story by Katie Elliott

Post offices handled a record £3.77 billion in cash transactions in July, marking the first time monthly transactions have exceeded £3.7 billion.

This new record surpasses the previous high of £3.57bn set in May 2024 by £200 million.

The Post Office said the figures indicate that the demand for cash is "stronger than ever" as more people rely on it to budget during the period of high living costs.

Business cash deposits reached £1.24bn, up 10 percent from the previous month and nine percent year-on-year.

Personal cash deposits also hit a new milestone at £1.58bn, reflecting an 11 percent month-on-month increase and 18 percent year-on-year growth.

Personal cash withdrawals totalled £917m in July, up eight percent from the previous month and 12 percent annually.

The Post Office noted a rise in cash withdrawals on July 19, coinciding with a major IT outage involving cybersecurity firm CrowdStrike, with withdrawals increasing by 13 percent compared to the same day the previous year.

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The Post Office also said the return of summer weather in July contributed to the record figures.

The Post Office has agreements with many banks, allowing customers to handle their everyday banking at its counters.

Ross Borkett, banking director at Post Office, said: "Our figures indicate that demand for cash is as strong as ever as people rely on cash to budget and businesses rely on it to survive a volatile trading environment.

"Postmasters and their teams play a vital role in supporting small businesses to trade by providing a convenient and secure location to deposit their cash takings with many branches open long hours and some on weekends.

"We are pleased that the Financial Conduct Authority has recently published new access-to-cash regulations to give both consumers and businesses more certainty around the future of cash."