Access to banking at post offices
Over 80% of current accounts, as well as basic bank accounts from all the major high street banks, can be accessed at a local Post Office. Access to cash via bank accounts and the Post Office card account (POca) helps to allow people to access their pensions and benefits in cash at a post office if they choose to do so.
Financial Services at the Post Office
The Post Office provides a wide range of financial services, including savings, credit cards, insurance and foreign exchange. Almost two million people use the Post Office's financial services products. It is, for example, the UK's leading provider of foreign currency, transacting £2.9 billion of foreign exchange each year.
To improve the Post Office's future sustainability, during 2009/10 the previous Government undertook a consultation on Post Office Banking and the values that should underpin it, putting forward a number of proposals for new financial products and services the Post Office could offer. The consultation received around 2,400 responses, with general support for the proposals. The previous Government published its response to the consultation on the 29 March 2010 and this included the following proposals:
- Making affordable credit more readily available by working closely with the credit unions;
- Increasing financial inclusion, by providing local access to more high street bank accounts;
- Giving children their own account to allow them to save at their local Post Office;
- Providing a way to manage household bills with a new account which will allow those on low incomes to take better advantage of direct debit rates for energy and water bills;
- New measures on mortgages; access to business banking, and a Post Office current account which would be available in all of its branches.
Post Office card account
The Department for Work and Pensions announced on 13 November 2008 the award of a new contract for the continuation of the POca up to March 2015 to Post Office Limited (POL), with the possibility of an extension beyond that. In addition to the POca, there are a range of bank accounts which allow customers to access their pension or benefit in cash free-of-charge at their local post office.
Bank accounts accessible at post office branches
Customers with current accounts with 13 UK banks and building societies can access their cash free of charge at post offices branches. In addition, customers holding basic bank accounts with 17 banks and building societies can also access their cash free of charge at post offices branches. With many bank accounts, including some basic bank accounts, customers can also pay in cash and cheques, and get balance enquiries too.
More information about the role of basic bank accounts in promoting financial inclusion is available from the Financial Inclusion Taskforce at HM Treasury.
Free-to-use ATMs
POL, in conjunction with its financial services partner, the Bank of Ireland, is currently implementing a programme to install up to 4,000 free-to-use cash machines at post offices across the country. The Post Office currently has around 2,000 free-to-use ATMs, of which some 60% are located outside of branches, thus allowing for access 24 hours a day.
