Consumers could be able to regularly withdraw £5 notes from cash machines after a report claimed that all of the major UK banks have drawn up plans to begin dispensing £5 notes from ATMs.

After various consumer surveys found that making £5 notes available via cash machines would be popular, a report by operator Link has claimed that almost every bank and building society in Britain is now receptive to the idea.

HSBC bank have already trialled a scheme to allow customers in the Midlands to withdraw fivers and it is believed to have gained positive feedback from consumers.

“In anticipation of the reforms proposed by the Bank of England, all of the UK’s largest ATM-operating banks and building societies have put in place plans to begin dispensing some £5s from their ATMs, or, for the few that already dispense some £5s – Barclays, HSBC and Lloyds TSB – to increase the proportion of £5s dispensed,” the Link Consumer Committee report said.

The trial by HSBC highlighted some issues with the scheme, particularly over the quality of many banknotes.

Because of the frequency of use, £5 notes often spend just one year in circulation before they are withdrawn due to damage. By comparison, £50 notes spend around five years in circulation. The cost of modifying existing machines was also highlighted as a concern.

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