Cash usage soars post-pandemic

Cash is making a comeback – withdrawal rates have soared for the third consecutive year since the pandemic hit, according to Nationwide.

Bank closures and increased usage

With so many banks closing their doors, it’d be easy to assume we’d actually withdraw less cash – but the reverse is actually true.

With fewer options available, more people are relying on ATMs.

Non-Nationwide customers increased their withdrawals by 16%, while Nationwide customers saw a 4% rise.

Why are we withdrawing more cash?

With the cost of living remaining high, many people are turning to cash to help them budget.

Otto Benz, director of payments at Nationwide, says that the rising cost of living is prompting people to use cash more intentionally, helping them avoid debt.

As many as 1.5m people across the country rely on cash for their everyday spending.

How much cash are we spending?

Nationwide reported a staggering 32.8m cash withdrawals across its 1,260 ATMs at 605 branches last year. That's a 10% increase compared to 2023.

On average, people withdrew £112 each time they visited an ATM.

The week leading up to Christmas was particularly busy, with £97.9m withdrawn. That's a rise of 1.8% compared to 2023 and the highest weekly amount since before Covid.

Black Friday also saw a bump, with £85.3m withdrawn, marking a 12% increase year on year.

Where’s the cash flowing?

Some areas are seeing remarkable increases in cash withdrawals.

Chiswick in West London topped the list with a 140% increase, followed by Shotton in Flintshire (115%) and Fakenham in Norfolk (96%).

Notably, towns like Henley-on-Thames and Cupar have also seen significant rises as Nationwide remains the last branch standing.

The building society has promised to keep its branches open, meaning customers won’t be at risk of financial exclusion.

Why cash is king

In today's digital world, it’s easy to swipe a card without a second thought.

But switching to good old-fashioned cash can be a simple yet effective way to keep your budget in check.

Visual cues

When you use physical money, you’re more aware of your spending. Literally seeing it leaving your wallet can help curb impulse purchases.

Here’s how cash can help you budget:

Set clear limits

Withdraw a specific amount each week. Once it’s gone, it’s gone.

Avoid overspending

It’s harder to overspend when you have a finite amount of cash.

Track your expenses

Keep receipts or jot down what you’ve spent. It’s much easier to see where your money goes.

Reduce fees

Cash transactions often come with fewer fees than card payments.

Plan ahead

Take a look at our guide about creating a budget and check our free budget planner to get you started. It’ll help you prioritise your spending and spot where you can make savings.

Don’t know where to start? Give us a call – we can help you with everything from budgeting to making sure you’re getting all the benefits you’re entitled to, as well as advising you on debt solutions (some are free, for others there’s a fee).

All of our debt advice is free and impartial, and you can access it online 24/7 or over the phone during our office hours – 0161 518 8285.