RESIDENTS who feared a town would be devastated by the closure of its only bank have welcomed news that they can now access their accounts at the local Post Office.

Banking giant HSBC closed its bank in Shildon, County Durham, on October 12, 2012.

The move meant Shildon residents faced a six-mile round trip to Bishop Auckland in order to access the nearest branch.

Cashpoints are in the Post Office, Church Street, and at the town’s Morrision store.

But critics of HSBC’s closure feared it would lead to shoppers and businesses heading elsewhere, causing a slump in Shildon.

Now the Post Office has expanded its services nationally to create a mini banking system for people with accounts at many high street banks.

Customers who have bank accounts can now withdraw and deposit cash and check balances at the Post Office.

Rick Hope, Shildon resident, said: “Losing the bank was a major handicap for people in Shildon so to be able to use the Post Office is great.

“The Post Office is trying to help. It has assisted banking for us but we still miss the bank.”

Helen Goodman, Bishop Auckland’s Labour MP, who battled the bank’s closure, said: “This will alleviate some concerns.

“However this is not a replacement service and does not let HSBC off the hook for their decision to close in Shildon.

“The range of services provided by the Post Office cannot replace those on offer at a high street bank.”

Councillor Peter Quinn, Shildon’s mayor, said: “This can only be good for the people of Shildon who are having trouble accessing the bank.”

Details on the Post Office service can be found at www.postoffice.co.uk/branch-banking-services.

A Post Office spokesman said: “Customers can carry out everyday transactions like cash withdrawals and paying in cash at any of our over 11,500 branches nationwide.”