Cash withdrawals across the UK have reached a new high, underscoring the continued importance of physical money for millions of consumers despite the rapid growth of digital payments.
New data from Nationwide Building Society shows that cash withdrawals from ATMs totalled £4.2bn in 2025, surpassing the previous record of £4bn set in 2017.
The figures mark the fourth consecutive year of growth in cash usage across Nationwide’s branch network, challenging assumptions that cash is in terminal decline. Instead, the data suggests that many people are actively returning to physical money as a way to manage household budgets and control spending. Recent research by Nationwide found that 13% of Brits, equivalent to around seven million people, believe paying exclusively in cash makes it easier to save.
Nationwide recorded approximately 34.7 million cash withdrawals from the 1,270 ATMs located at its 605 branches last year, representing an increase of around 6% compared with 2024. At the same time, the average amount withdrawn rose from £113 in 2024 to £120 in 2025, indicating that customers are taking out larger sums per transaction.
Seasonal spending pressures also played a role in driving higher usage. The busiest period for cash withdrawals was the week commencing 15 December, when £103m was withdrawn, a 5% year-on-year increase and the highest weekly total since before the Covid-19 pandemic. The week leading up to Black Friday also saw heightened demand, with £93m withdrawn, up 9% compared with the same period last year.
This resurgence in ATM usage comes against a backdrop of widespread bank branch closures. According to Which?, 6,626 branches have closed since January 2015, averaging around 53 closures per month and equating to 67% of the network that existed at the start of that year. Nationwide now operates 135 ‘last in town’ branches, a figure expected to rise further in 2026.
The data shows a 6% increase in withdrawals from both Nationwide customers and non-Nationwide customers, suggesting that access to cash is becoming increasingly reliant on remaining branch networks. Nationwide, which operates the UK’s largest single-brand banking network, has reiterated its commitment to face-to-face services through its Branch Promise, confirming that all branches, including its 91 Virgin Money locations, will remain open until at least 2030.
Regional data indicates that the biggest increases in cash withdrawals were recorded in East Anglia and Essex, The shires and South London. The growing use of multi-function ATMs also highlights that withdrawals are only part of the picture, with 42% of all ATM transactions used for services such as printing mini-statements, paying bills, changing PINs, and depositing cash and cheques.
When it comes to cash deposits, Nationwide processed 4.2 million ATM deposit transactions in 2025. The average deposit value increased from £278 to £281, although the total value of deposited cash is down 4% compared with the peak recorded in 2022.
Nationwide director of retail services Mandy Beech said, “Nationwide has the UK’s largest branch network and we see daily how our customers value cash and face-to-face service. That’s why we’ve promised to keep all our branches open until 2030.
“ATM usage last year exceeded the previous peak in 2017 and while it is interesting to see ATM withdrawals continuing to rise, it is exacerbated by ongoing closures of bank branches. Which? figures show there has been a massive reduction in the number of branches in communities, which might point to why we are also seeing a rise in withdrawals coming from non-Nationwide customers.”
Keep up with all the latest FinTech news here
Copyright © 2026 FinTech Global
