Banking at the Post Office - here's what you need to know

A_Nice_Englishman

Zanderman wrote: »

Each to their own. Our small town has lost 4 banks, and now has only one ATM. Our thriving PO offers a wide range of banking services that we have now lost. We don't actually 'bank' there, but it has useful services for our other bank accounts, such as those listed in the post you were replying to.

I would disagree that PO banking (whatever your definition of that is) is "more of a social service for those unable to use technology and who never visit a medium/large town"

We use technology - online banking, apps, challenger banks - you name them, we use them - we are definitely not 'unable to use technology'. But we still need to use a counter service now and then. And why should we wait to do counter transactions until we visit the nearest 'medium/large town' when we can use the PO in our small town?

You may only get one cheque a year but that doesn't mean everyone does - cheques are alive and kicking - not as common as they used to be but still essential for many transactions.

Don't let preconceptions cloud your judgement - POs are no longer populated by technology-averse grannies collecting pensions and buying stamps. They are actually gaining business - and usefulness for us all - as banks close and they take on some of the banks' business via counter services. Indeed many of the new challengers need the PO for deposits etc.

I'd put those who pay you by cheque in the 'unable to use technology' category to be honest. If you could convert those to electronic payments and also made your payments that way would you still need the P.O.?

Having said that, it's good that consolidating all the work in one place instead of five means it's become viable.

karlie88

A_Nice_Englishman wrote: »

If you could convert those to electronic payments and also made your payments that way would you still need the P.O.?

Aside from the multiple banking services you could still use at a Post Office, where do you suggest someone posts their Signed For letter or their small parcel? Also, where would someone obtain their certificate of posting from?

A_Nice_Englishman

karlie88 wrote: »

Aside from the multiple banking services you could still use at a Post Office, where do you suggest someone posts their Signed For letter or their small parcel? Also, where would someone obtain their certificate of posting from?

I should have said 'what banking services would you need the PO for?'

The only banking services the PO offers that ATMs or shops giving cashback don't are paying in cash and cheques. Avoid being paid large sums of cash or by cheque and those become unnecessary.

The thread isnt about postal services but I take your point on that. If offering banking service for those who don't use technology or visit places with bank branches helps make POs viable thats fine.

ValiantSon

A_Nice_Englishman wrote: »

The only banking services the PO offers that ATMs or shops giving cashback don't are paying in cash and cheques. Avoid being paid large sums of cash or by cheque and those become unnecessary.

Easily said, but necessarily so easily done. There are many situations where someone could find themselves being offered cash, e.g. a friend or colleague paying a debt/collective fund for an activity or present. Equally, cheques remain a common method of payment by businesses, e.g. solicitors passing on funds realised from a transaction, or settling an inheritance. The truth is that for a sizeable proportion of the population, both cash and cheques remain as items that they will have to deal with, and the service provided by the Post Office is of considerable value, especially given the number of bank branches that are closing.

On a purely anecdotal note, our village has no bank branches (not much of a surprise) and no ATM (we used to have one, but recently it was removed). We do, however, have a post office. While I can (and sometimes do) drive to a nearby town to pay in cheques and cash, the post office in the village is a much more convenient option in many instances.

A_Nice_Englishman

ValiantSon wrote: »

Easily said, but necessarily so easily done. There are many situations where someone could find themselves being offered cash, e.g. a friend or colleague paying a debt/collective fund for an activity or present. Equally, cheques remain a common method of payment by businesses, e.g. solicitors passing on funds realised from a transaction, or settling an inheritance. The truth is that for a sizeable proportion of the population, both cash and cheques remain as items that they will have to deal with, and the service provided by the Post Office is of considerable value, especially given the number of bank branches that are closing.

On a purely anecdotal note, our village has no bank branches (not much of a surprise) and no ATM (we used to have one, but recently it was removed). We do, however, have a post office. While I can (and sometimes do) drive to a nearby town to pay in cheques and cash, the post office in the village is a much more convenient option in many instances.

I take your points, but personally unless it was a large amount any cash I took for those reasons I'd just keep it in my wallet and delay my next cash withdrawal (or buy the present / pay the provider of the activity in cash). I've had just one cheque from a solicitor in my life and one from a business in the last fifteen years.

I used to say all I used cash for was beer, tea and bus fares. Now it's just beer in the one remaining local pub that doesn't do contactless. Tradesmen prefer bank transfers and my plumber has a portable card machine,

I'm frankly surprised so much cash circulates and so many cheques seem to be used.

its_all_over

A_Nice_Englishman wrote: »

]Avoid being paid large sums of cash or by cheque and those become unnecessary.

Id love to know how you can avoid being paid by a cheque if the company or person sending you the money only has the facility or will only pay by cash or with a cheque. Do you then refuse the money and tell the person it's ok not to pay you?

COIAHLGW

I wonder why Nationwide has chosen not to allow deposits via the Post Office? I know there's a cost to it all, but all other major players allow it.

A_Nice_Englishman

its_all_over wrote: »

Id love to know how you can avoid being paid by a cheque if the company or person sending you the money only has the facility or will only pay by cash or with a cheque. Do you then refuse the money and tell the person it's ok not to pay you?

If they've got a cheque book they've got a bank account and except in very limited circumstances (like the charity I mention above) will be able to make an electronic payment. Most companies don't accept cheques and probably don't issue them either.

ValiantSon

A_Nice_Englishman wrote: »

I take your points, but personally unless it was a large amount any cash I took for those reasons I'd just keep it in my wallet and delay my next cash withdrawal (or buy the present / pay the provider of the activity in cash). I've had just one cheque from a solicitor in my life and one from a business in the last fifteen years.

I used to say all I used cash for was beer, tea and bus fares. Now it's just beer in the one remaining local pub that doesn't do contactless. Tradesmen prefer bank transfers and my plumber has a portable card machine,

I'm frankly surprised so much cash circulates and so many cheques seem to be used.

There is a risk, here, of you assuming that your experiences are the same as everyone else's.

There are a number of good reasons not use the cash in the case of group based purchasing, including added protection through using a credit card.

I've had several cheques from solicitors, and several from businesses. In the last 12 months, I have dealt with four such cheques (business and solicitor).

Lots of pubs outside of large towns a and cities still don't provide contactless payment. I know lots of tradesmen who don't have car readers either, and some who don't take electronic transfers either.

I'm not that surprised that so much cash still circulates, although I would be happy to see it go if I could use my cards without any costs.

ValiantSon

A_Nice_Englishman wrote: »

If they've got a cheque book they've got a bank account and except in very limited circumstances (like the charity I mention above) will be able to make an electronic payment.

Whether or not they can is irrelevant; rather the issue is whether or not they will. You have no right to force them to pay you by your preferred method.

A_Nice_Englishman wrote: »

Most companies don't accept cheques and probably don't issue them either.

Lots of companies issue cheques. You are speculating wildly.