Post Office sees personal cash deposits rise as households budget for Christmas

Signs of people putting money aside in late summer, in preparation for the costly winter months, have been seen by the Post Office.

It handled more than 17 million personal cash deposit transactions between July and September – a 7% annual increase.

This was also a 3% increase compared with the previous quarter.

A survey commissioned by the Post Office also indicated that more than half (54%) of people who were putting aside money for festive spending were saving earlier than they usually would this year.

Nearly two-fifths (38%) of people started to think about how they would afford the festive season during the summer, while 31% said they typically start saving money during this period.

Ben Hunter Woollard, head of banking at the 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.”

The Post Office has an agreement with many banks, allowing people to do their everyday banking over its counters.

Ying Shi, postmaster at Caterham Post Office, said: “Over the summer, I noticed more customers 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.”