Post office announces fresh agreement to offer banking services

Borderers will be able to withdraw cash at their local post office thanks to a new agreement signed with 28 UK banks.

The Post Office has announced that it will continue to offer cash withdrawals, deposits and balance enquiries on behalf of banks from 2020. Every bank in the UK, with the sole exception of Barclays, has agreed to continue with this service.

The new agreement will also increase the payment given to Post Offices by the banks for offering these services.

The news comes at a time when free to use ATMs are becoming increasingly scarce. Analysis by Which? has found Scotland has lost 562 free-to-use cash machines between January 2018 and May 2019 - the equivalent of 35 per month. Last month, NoteMachine, the UK’s second largest ATM provider announced it would start charging for nearly half of its ATMs.

Local MP John Lamont has said more needs to be done to promote this arrangement with the Post Office but has welcomed the news.

Commenting John Lamont MP said: “Not everyone knows that you can withdraw cash from your local Post Office so we certainly need to do more to promote this agreement.

“Although the Post Office is not a replacement for bank branches, this is a useful service, particularly in rural areas. It is good news for our local businesses that 99% of bank customers will continue to be able to take cash out and spend it locally.

“I also know from speaking to local Postmasters that the amount they were being paid by the banks for taking on these services needed to be improved. I am pleased that this new agreement will do just that and ensure the banks are no longer taking advantage of the Post Office to offer banking on the cheap.”