Cash Withdrawals See Surprising Rise as Nationwide Reports £112 Increase
In an unexpected turn, cash is making a comeback in the UK, despite the widespread trend toward a cashless society. According to Nationwide, the world’s largest building society, cash usage has increased for the third consecutive year, showing a 10% rise in 2024 compared to 2023. This shift is largely attributed to the ongoing cost of living crisis, where many people are opting to withdraw physical cash to manage their budgets more effectively.
Data reveals that December saw the busiest week for cash withdrawals, just before Christmas, with £97.9 million being dispensed across Nationwide’s 1,260 ATMs. This is the highest weekly withdrawal figure since before the pandemic. On average, customers withdrew £112 at a time. This surge in cash usage represents a stark contrast to pre-pandemic trends, where the demand for physical money had been steadily declining.
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Before 2022, cash withdrawals at Nationwide had been decreasing each year since their peak in 2014. However, the pandemic and the cost of living crisis have shifted this trajectory. In 2020, when the pandemic first hit, cash withdrawals plummeted by more than 40% due to lockdowns and the widespread closure of businesses that traditionally accepted cash. Yet, as the pandemic eased and economic pressures mounted, physical money has once again become a go-to tool for budgeting.
Nationwide explained that part of the rise in cash withdrawals is due to the closure of many bank branches and ATMs, leaving people with fewer options to access their money. While other banks have reduced their physical presence, Nationwide remains committed to keeping its branches open at least until 2028. Otto Benz, Nationwide’s director of payments, pointed out that many people are turning to cash to avoid falling into debt, as cash allows them to better manage their finances and stick to a budget.
Interestingly, the rise in withdrawals isn't limited to Nationwide customers. Non-members are also withdrawing more cash, highlighting the difficulty many people face in accessing free ATMs, especially with bank branches closing across the country. The increase in cash usage is further reflected in the rise of trends like “cash stuffing,” where people divide their cash into envelopes for specific budget categories like groceries or bills.
The trend underscores the resilience of physical money, even in a digital age, and points to the need for continued access to cash and physical banking services. The resurgence of cash withdrawals signals that, for many people, especially during times of economic strain, having control over tangible money remains an essential part of their financial strategy. With Nationwide’s continued investment in keeping its branches and ATMs available, it’s clear that the demand for physical cash remains significant in the UK.
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