Cash use is rising again across the UK as households keep a closer eye on their spending.
New figures suggest more people are turning to physical money to manage day-to-day finances.
Post Office branches handled nearly 40 million cash transactions in the first three months of 2026, making it the busiest start to a year on record.
Data from its latest Cash Tracker shows 39.8 million deposits and withdrawals took place between January and March, up by around 900,000 compared with the same period last year.
This two per cent increase reflects growing demand from households trying to stay on top of their finances as cost of living pressures continue.
The total amount of money being moved also rose, with combined personal and business deposits up six per cent, while the overall value of withdrawals increased by the same amount.
Maggie Roberts, Postmaster at Storth Post Office in Cumbria, said: "Many of our customers rely on us to be able to withdraw cash, pay in money and deposit cheques closer to home.
"Around 60 per cent of the village are retirees and they do not want to travel that far, so services offered by a Post Office really matter."
Personal deposits saw the biggest jump, rising 10 per cent year-on-year, while the value of personal withdrawals grew by six per cent.
The typical amount taken out by individuals reached £139 on average, a seven per cent increase on last year, with the average deposit climbing two per cent to £297.
The figures suggest cash remains a practical budgeting tool when finances are stretched
|GETTY
These patterns point to people using cash more deliberately as a way to keep track of their spending.
Ben Hunter Woollard, Head of Banking at Post Office, said: "For households, being able to withdraw and deposit cash at their local Post Office can be a simple way to stay on top of spending, manage budgets and handle everyday finances with confidence, particularly when family budgets are under pressure."
A strong March performance was linked to families preparing for Easter and school holidays, with travel, fuel and energy bills adding to household expenses.
The figures suggest cash remains a practical budgeting tool when finances are stretched.
Post Office branches handled nearly 40 million cash transactions in the first three months of 2026
| POST OFFICEBusiness customers also maintained strong cash activity throughout the quarter, with the value of their withdrawals climbing 3 per cent and deposits growing two per cent year-on-year.
Average transaction values for businesses rose by two per cent, while overall transaction volumes held steady compared with the first three months of 2025.
The data indicates that cash continues to serve as a reliable option for firms handling daily takings and managing their cash flow requirements.
Smaller businesses in particular appear to depend on their local Post Office branch for routine banking tasks, from depositing earnings to accessing cash needed for day-to-day operations.
These record-breaking figures show how important Post Office branches remain for millions of people and businesses across the UK who want convenient
| GETTYThis reliance underscores the ongoing role these branches play in supporting commercial activity within communities.
Ms Roberts said: "Cash and banking services make up around 75 per cent of my business and they are extremely important for the Storth community."
Mr Hunter added: "These record-breaking figures show how important Post Office branches remain for millions of people and businesses across the UK who want convenient, secure access to cash services on their doorsteps.
"For businesses, especially smaller firms, being able to deposit takings and access cash locally remains a practical part of day-to-day trading. Post Office branches continue to play an important role in communities by providing access to the cash services people and businesses still rely on."