Savings Banks

The Halifax announced that cheque usage in the UK is at the lowest point it has ever been and if the decline continues at the same rate they will disappear by 2025.

Even though 2.1 billion cheques were issued in 2004, the figure is 7% lower than in 2003. Approximately 3.7 billion cheques were issued in 1990.

The increasing popularity of other payment methods such as debit cards, phone and internet payments are key factors in the reduction of the amount of personnal cheques.

Nine out of ten employee's now receive their salary by direct bank deposit rather than cheque or cash.

In a statement Peter Jackson, head of banking at the Halifax, said:
"The use of personal cheques dropped last year for the tenth year running and customers now prefer quicker and easier payment methods.

"It is very clear that the cheque is no longer the main payment method and based on the current rate of decline they are likely to virtually disappear within the next 20 years. Cash and debit cards are clearly the preferred method of payment in the UK today."