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Bank customers can use Post Offices until the end of 2025

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Written by: Emma Lunn
01/02/2022
Millions of people who rely on Post Office branches for their everyday banking needs will be able to continue to do so for another three years.

The Post Office has secured agreement from 30 banks, building societies and credit unions which enables their customers to use the Post Office for their cash needs.

The deal extends an agreement that came into force on 1 January 2020 and was originally intended to end on 31 December 2020 – it will now run until 31 December 2025.

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.

The new agreement extends a critical service for consumers and businesses that will form an important part of supporting Access to Cash legislation expected from government.

More than £3bn a month worth of cash is deposited and withdrawn every month from Post Office’s 11,500 branches – and this is expected to continue throughout 2022.

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.

According to Post Office figures, 99.7% of the population live within three miles of a Post Office. Post Offices offer more convenience as they offer longer opening hours and are often open much later than bank branches, with about 4,000 open at weekends. Customers can also withdraw the exact amount of cash they need at the counter.

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agreement came into effect – until 31 December 2021, business and personal customers have deposited more than £46bn and withdrawn more than £16bn in cash in total.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

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

Russell Galley, managing director of Halifax, Lloyds Banking Group, said: “There’s a great range of choice available to customers carrying out their everyday banking, and we’re really pleased that the Post Office will continue to provide one important option, having provided banking services to our customers for over 20 years. We know the service is really valued by communities, giving people and businesses another way to manage their accounts, make payments and access cash.”

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