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Savers deposit more than £1bn at Post Offices for second month running | Post Office

Savers deposited file sums at Post Office branches in April, taking the overall to more than £1bn for the second month in a row.

The Post Office mentioned it was the primary time that personal deposits have topped £1bn for two successive months. A complete of £1.07bn was paid in over its counters, following money deposits of £1.12bn in March. Last September was the one different month when personal money deposits exceeded £1bn.

Businesses additionally paid in more cash-in-hand takings, a complete of £769m, up 8.8% from the earlier month – the very best quantity deposited since final October, excluding Christmas. Compared with April 2020, when the UK was within the first full month of lockdown, business money deposits had been up 146%.

Businesses resembling pubs, cafes, outlets, different small companies and self-employed folks together with builders and market merchants nonetheless rely closely on money, regardless of a normal shift to on-line banking and contactless funds.

Martin Kearsley, the banking director at the Post Office, mentioned: “Overall cash deposits and withdrawals continue to recover as lockdown relaxation gathers pace. A 9% increase in business cash deposits is a very encouraging sign that re-opening retailers saw cash coming back into their tills in the second part of April.”

The Post office mentioned that as many financial institution branches stayed closed throughout Covid-19 lockdowns or operated restricted hours, more folks got here to its branches to pay in money. It has an settlement with 30 banks and constructing societies that permits their clients to withdraw or deposit money at any of the Post Office’s 11,500 branches.

Consumers withdrew almost £590m in April, just like March and the very best quantity taken out since final September, excluding Christmas.

Martin McTague, the nationwide vice-chair of the Federation of Small Businesses, mentioned: “These figures are a reminder of the importance of cash to millions of consumers and the vital role played by the Post Office in protecting access to it. With the pandemic accelerating the move to online banking and contactless payments, it’s critical that the banks continue to work through the Post Office network.”

McTague sits on the group entry to money pilots board, launched in February 2020 to help test solutions to ensure free access to cash for local communities. He added: “Cash is not only the first choice payment method for millions of consumers, who often belong to vulnerable groups, it also serves as a backup for when digital systems fail and a competitor to card providers.”

The authorities mentioned within the March 2020 finances that it might legislate to guard entry to money for so long as folks wanted it after the Access to Cash Review warned that more than 8 million UK adults would wrestle to manage in a cashless society. Last month the federal government accepted an modification to the monetary companies invoice to permit customers to make use of cashback with out having to make a purchase order.

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