Nationwide reveals that withdrawals have soared – and the average amount withdrawn in one go is huge

According to Nationwide, cash withdrawals rose for the third consecutive year as people used physical cash to help budget.

The typical withdrawal value rose from £106.99 to £112.65 between 2023 and 2024, marking another increase on 2021 when the average amount withdrawn from the machines was £107.23.

Last year, almost 33 million withdrawals were made from 1.26 million ATMs nationwide, representing a 10 percent increase compared to 2023.

The building society said the recent increase was driven by customers opting for cash over an easier budget option in the wake of the pandemic – as well as other ATMs in local areas being closed.

Before 2022, cash withdrawals at ATMs nationwide had fallen from their 2014 peak, with the biggest decline occurring during the pandemic when withdrawals fell by 40 percent.

“The rising cost of living continues to impact people, with many choosing to cut back on physical cash to avoid falling into debt,” said Otto Benz, Nationwide’s director of payments.

The week before Christmas saw the highest demand for cash, with £97.9 million withdrawn from ATMs nationwide, a 1.8 per cent increase on 2023 and the highest amount spent in a week since before the pandemic .

The week leading up to Black Friday at the end of November saw a 12 per cent increase to £85.3m and the second highest weekly take since pre-Covid.

The biggest increase in cash withdrawals was in Chiswick, west London, where demand rose by 140 percent, followed by Shotton, Flintshire (up 115 percent) and Fakenham, Norfolk (96 percent).

Other significant increases occurred in areas where Nationwide is the last bank branch in the city, including Henley-on-Thames, Oxfordshire (95 percent) and Cupar, Fife (66 percent).

Nationwide said the demand for ATMs also came at a time when bank branches were closing across the country, with 16 percent of withdrawals now made by non-Nationwide customers.

According to consumer website Which?

Critics of branch closures argue that the elderly, vulnerable and those without access to the internet are disproportionately affected.

Benz said: ‘The big banks have closed branches in towns and cities across the country, taking away many of the free ATMs that people depend on. Therefore, the biggest increase in withdrawals comes from non-Nationwide customers.

‘The resurgence of cash shows why we need to maintain a physical presence on the high street, so customers can access their money on their terms, both digitally and in a branch.’

It has also led to an increase in the number of consumers using ATMs for other services, including printing mini statements, paying bills, changing PINs and paying with cash and checks, which now account for almost half of all ATMs.

There has also been a 21 per cent increase in the number of times national ATMs are used to deposit cash, with the five-year average increasing by 0.5 per cent to £278.

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