TSB branches in Banff and Peterhead are to close in a nationwide cost-cutting drive which will see 250 jobs lost.

The Peterhead branch is scheduled to close for good in September, with the Banff branch to follow May 2025.

Bank of Scotland is also exiting both towns as high street banks adjust to changing customer habits.

A spokesperson for TSB said: "The decision to close a branch is never taken lightly, but our customers are now doing most of their banking digitally, and we need to move to a better balance of digital and face-to-face services.

"We remain committed to a national branch network and through innovation and integration with video, telephone, digital, branch and other face-to-face services TSB customers have more ways to bank with us than ever before.

"To meet changing customer needs and for TSB to remain competitive, we are making changes to simplify the way we operate.

"Our priority is to consult with impacted colleagues to ensure they’re fully supported, maximising redeployment opportunities where we can."

Trade Union Unite said the redundancies are likely to affect the bank's fraud operations, central operations and the TSB branch network.

It comes just a few months after TSB said it would cut around 300 jobs in its risk and finance, customer banking and customer delivery teams.

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