Personal cash deposit transactions at Post Office branches rose by 7% year on year to more than 17 million between July and September, according to the company's quarterly Cash Tracker data. Deposits also increased by 3% on the previous quarter, with the value of deposits up 5% in the same period, suggesting more people are setting money aside during the later summer months to prepare for winter costs.
Cost of living drives early saving
With household budgets under increasing pressure, nearly half (48%) of people currently putting money aside say rising living costs are prompting them to save earlier this year. Cash is playing a key role in that planning, as 63% use it to budget or keep money aside for specific expenses, while 31% say cost-of-living pressures have led them to use cash more to manage their finances.
Ben Hunter Woollard, head of banking at Post Office, said: "As households brace for a more expensive festive season, Post Office branches have handled a high number of personal cash deposits this summer."
"For many people, using cash is a helpful way to plan ahead, budget and put money aside for specific costs," he added. "These findings underline how important cash remains and at Post Office, we are committed to keeping cash accessible on local high streets, making sure customers can securely pay in or withdraw money into their bank accounts locally, whenever they need to."
Withdrawals and budgeting trends
Post Office cash transactions continued to rise alongside deposits, as personal withdrawals reached over 21 million between July and September, up 3% on the previous quarter. While many customers are depositing cash to build savings, cash also remains a valuable budgeting tool. Among those who put money aside by withdrawing cash, 46% say it helps them keep track of what they have left to spend, while 37% say it helps curb overspending.
Ying Shi, postmaster at Caterham Post Office, commented: "Post Office cash banking services are a simple and convenient way for customers to stay on top of their finances and plan ahead for future expenses."
"Many of my customers regularly come in to deposit small amounts of cash, sometimes just £20 or £30 at a time. It might not seem like a lot, but those regular deposits soon add up and help people prepare for costs they know are coming," Shi said.
Seasonal saving and peace of mind
Shi noted that over the summer, more customers were putting money aside for occasions later in the year, particularly Christmas. "Some are saving for gifts for children and grandchildren, while others are setting money aside for celebrations, family gatherings or household expenses," she said.
"Customers tell me they like knowing exactly how much they have saved and that the money is safely in their account when they need it. It gives them peace of mind and helps them avoid the stress of finding extra money at the last minute or relying on credit," Shi added.
"It's also not just about Christmas. With the cost of living continuing to concern many households, some customers are using cash deposits to build a savings pot for unexpected costs. It's a practical way to budget and one of the reasons our cash banking services remain so valuable to customers."
