Deposits up at Post Office as banks shut

Business cash deposits at post offices have risen by 25 per cent due to bank closures, MSPS have heard.

Martin Kearsley, the Post Office’s director of banking, said the retailer is working to raise awareness of the banking services offered at its 1,400 branches in Scotland as banks close.

He was giving evidence to Holyrood’s economy committee as part of its inquiry into the impact of bank closures after Clydesdale, Santander and RBS announced plans to shut more than 100 branches. RBS has given a temporary reprieve until the end of 2018 to ten of the 62 branches it plans to close.

Mr Kearsley said: “Local businesses, they need a counter to pay cash over, and we’ve seen about a 25 per cent rise in business cash deposits over the last year as a result of bank closures. If you look at the RBS closure plan, 45 per cent of the branches that are closing are within 100 yards of a post office.

“So, far be it for us to force people to use a post office, but if we can make it a welcoming, secure and safe environment, one that’s beneficial to the postmaster and the community, there is no need to travel several miles to go to the nearest bank branch.

“For those daily transactions that keep the local economy fuelled, there is the post office.”