The Post Office (PO) saw record values in cash withdrawals and deposits last month, with nearly £300,000 changing hands in the average branch.

The figures represent a nearly 25% rise on the same period last year, equivalent to an extra nearly £60,000 in transaction values for each branch. PO said the rise was fuelled by a deal allowing customers of challenger bank Monzo to conduct the transaction in its branches for the first time.

In a quote supplied by the PO, Jeet Jadeja, postmaster for Staple Hill in Bristol and Quedgeley in Gloucestershire, said the Monzo deal “will make a huge difference for banking customers”.

“Monzo has over 9 million retail customers as well as 400,000 business customers so this will widen Post Office’s appeal in both of my branches and across the network.”

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The success is likely also affected by continuing bank branch closures, with nearly 400 more scheduled to disappear in 2024.

Ross Borkett, PO banking director, said: “Post Office is delighted to welcome Monzo as another partner in our Banking Framework, helping us ensure more UK banking customers than ever before can access essential cash services in any Post Office branch.

“It is positive to see the continued growth in customers using their local Post Office, and accessing essential cash services through our extensive partnership with banks. The fact that we are seeing the highest ever levels of cash withdrawals and deposits demonstrates the growing importance of our services in providing access to cash for customers and businesses across the UK.”

In total, UK PO branches saw cash deposits and withdrawal value reach £3.48bn in April. While withdrawals reached a value of £864.9m – up 20.4% year-on-year – across branches, total cash deposits, including both business and personal, equalled £2.62bn, representing a 26.5% year-on-year increase.

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