People still prefer to do their banking in branches rather than over the internet. A survey by National Savings and Investments found people still prefer personal service when it comes to money matters.
Around 54 per cent of savers prefer branch access, compared with the internet (15 per cent) and telephone banking (seven per cent).
Nevertheless, the use of internet-only accounts has soared, with total deposits rising from £300 million in 2000 to £27 billion in 2004 - a rise in market share from 0.1 to 5.4 per cent.
However, between 2000 and 2004, the greatest growth in absolute market share and volume terms was for accounts offering flexibility.
The market share of branch-based, multi-access accounts rose from 38.1 per cent in 2000 to 59.7 per cent in 2004, and total deposits more than doubled from £ 149.5 billion to £306.3 billion.
By contrast, total deposits in branchonly accounts fell from £181.9 billion (2000) to £111.8 billion (2004). Their market share also dropped significantly, from 46.3 to 21.8 per cent.
Telephone only accounts increased balances by 76.9 per cent, from £ 11.6 billion to £20.5 billion, and market share from three to four per cent, but have been overtaken by internet-only accounts.