With immediate effect, all Nationwide "Flexaccount" personal current account customers will be able to withdraw cash and check their balances at any Post Office branch, free of charge.

David Mills, Chief Executive of Post Office Ltd, said: "The Post Office is a key provider of banking and financial services with the largest, and one of the fastest growing, free cash withdrawal outlets in the UK — more than one million people a day use this service. We're extremely pleased that Nationwide's customers, especially those in rural areas, will now have easier access to their accounts through our extensive network.

"The agreement with Nationwide is part of our continuing initiative to work closely with the banks and building societies to increase accessibility to their services. We are encouraging all of the major retail banks to allow their customers access to a range of banking services at Post Office branches."

Stuart Bernau, Nationwide's executive director, said: "We are really pleased that our current account customers are now able to withdraw cash and check their balance, free of charge, at any of the 14,500 Post Office branches.

"Nationwide places great importance on developing new ways to improve the services we provide to our customers. Nationwide's FlexAccount customers can choose to do business through our branches, or the 24 hour internet banking and telephone services."

John McFall MP, Chairman of the Commons Treasury Select Committee, said: "Providing free access to cash withdrawals is an important way of promoting financial inclusion. I very much welcome this new alliance. I hope yet more banks and building societies will allow their current account customers to have free access to cash withdrawals through the Post Office."

The Post Office®'s network of 14,500 branches nationwide is bigger than the combined total of 11,500 bank and building society branches. With 94% of the UK population living with one mile of a Post Office branch, Post Office wants all its customers to benefit from the free cash withdrawal services available.

Post Office branches also offer banking services for current and basic account customers of Lloyds TSB, Barclays and Alliance & Leicester customers, as well as the Co-operative Bank, Bank of Ireland, Clydesdale Bank, First Direct (in Scotland only), smile and cahoot.

In addition customers with basic bank accounts at Abbey, Bank of Scotland, Co-operative Bank, First Trust Bank, Halifax, HSBC, NatWest, Northern Bank, The Royal Bank of Scotland, Ulster Bank and Yorkshire Bank can also make free cash withdrawals at any Post Office branch.