The Post Office has reported a record high for personal cash withdrawals on a single day, with £62 million taken out on Friday 22 December 2023. This surpasses last year's record of £51.5 million on 23 December 2022, driven by last-minute shopping and preparation of cash gifts for Christmas.
On Christmas Day itself, personal account holders withdrew £800,000 in cash, while business customers deposited just over £1 million. Ross Borkett, the Post Office's head of banking, noted that free cash withdrawals helped people finish last-minute shopping or provide gifts, while business deposits highlighted the need for convenient locations for pubs and restaurants to deposit Christmas takings before a quieter January.
Link, the UK's largest cash machine network, confirmed that the last Friday before Christmas was the busiest day of the year for withdrawals, with around £460 million taken out on 22 December. The average withdrawal value was just under £105. Graham Mott, Link's strategy director, attributed the surge to people stocking up for travel and using cash as presents.
The Post Office typically handles £3.3 billion in cash monthly, with November seeing the highest personal cash withdrawals of the year. The group has previously linked increased cash use to the cost of living crisis, as people rely on cash for day-to-day budgeting. In September, retailers reported a rise in cash transactions for the first time in a decade, with 19% of purchases made using notes and coins, up from 15% the previous year.
UK Finance also noted a rise in cash use due to rising prices but expects a decline once the financial squeeze eases. The Financial Conduct Authority has proposed rules to maintain cash access, requiring free withdrawals and deposits within one mile in urban areas and three miles in rural areas.
