The total value of personal cash withdrawals at Post Office branches jumped by 12.5 per cent annually in June.
The Post Office said personal cash withdrawals stood at £836.21 million, which was also up by 2.4 per cent month-on-month.
In signs that households have been dipping into savings to help with rising living costs, Bank of England figures recently showed that households withdrew a record £4.6 billion from banks and building societies in May - the highest figure since the Bank's monthly records started in October 1997.
The Post Office said that the total value of personal and business cash withdrawals and deposits was £3.35 billion in June - the highest level since last September.
It has partnerships with more than 30 banks, building societies and credit unions, meaning that 99 per cent of UK bank customers can access their accounts at their Post Office branch.
Martin Kearsley, Post Office banking director, said: "Postmasters continuing to handle well over £3 billion each month demonstrates just how vital being able to deposit and withdraw cash securely and conveniently is for millions of people.
"These figures clearly show that Britain is anything but a cashless society and people are reliant on cash as the tried-and-tested way to manage a budget."
