In July, personal cash withdrawals experienced a slight decrease of 2.5% month-on-month, reaching £815m (£836m, June 2023). However, these withdrawals were still up by 1.8% compared to the previous year (£801m, July 2022).
On the other hand, business cash deposits saw a 2.5% decline month-on-month in July, amounting to £1.14bn (£1.17bn, June 2023). The figure remained stagnant in comparison to the previous year.
In contrast, personal cash deposits reached £1.34bn in July, indicating a 2.4% increase compared to the previous month (£1.31bn, June 2023). This represents the highest level of personal cash deposits since January 2023, when £1.38bn was deposited.
Martin Kearsley, the banking director of the Post Office, noted that the slight reductions in cash withdrawals and business cash deposits during a typically busy summer month could reflect consumer belt-tightening or even be attributed to unfavorable weather conditions.
He further suggests that the rise in personal cash deposits may signify individuals setting money aside for summer staycations or preparing for potentially financially constrained months ahead. Notably, business cash deposit totals reached their all-time high in August last year. The current figures will serve as an essential indicator of consumer confidence when it comes to spending on hospitality and leisure activities.
In August 2022, business cash deposits alone exceeded £1.2bn for the first time in a single month, reaching £1.21bn.
The considerable volume of cash transactions, surpassing £3bn, taking place in Post Office branches is driven by the ongoing closures of bank branches. This emphasizes the vital role that Post Offices play in communities. Since 2015, a significant number of 5,632 banks and building societies have closed or are scheduled to close, with over 500 additional bank branch closures announced for 2023 thus far.
With partnerships established with over 30 banks, building societies, and credit unions, the Post Office ensures that 99% of UK bank customers can conveniently access their accounts at their nearest Post Office branch.
Summary of Post Office Cash Tracker data for July 2023:
– Total cash deposits (business & personal) value: £2.48bn (+0.1% MOM, -0.1% YOY)
– Total cash withdrawals (business & personal) value: £845.1m (-2.6% MOM, +2.0% YOY)
– Total value of cash deposits & withdrawals for July 2023: £3.33bn
Cash deposits and withdrawals value by country (rounded to the nearest million):
– England: £2.06bn (+0.3% MOM, +0.2% YOY)
– Scotland: £167.0m (-0.7% MOM, -5.5% YOY)
– Wales: £129.4m (+0.9% MOM, +2.0% YOY)
– Northern Ireland: £124.4m (-3.5% MOM, +0.9% YOY)
Please note that the figures for cash deposits value and cash withdrawals value by country have been rounded, which may cause value figures per country not to add up precisely to the total for the UK.
Source: Post Office Cash tracker data – July 2023
