The HSBC Bank in Freshwater, which is to close. Picture by Peter Boam.
THE HSBC branch in Freshwater will be closing on December 6.
It will mean West Wight customers will be forced to use electronic banking or travel to Newport or Cowes.
HSBC said it was closing the branch because it was underused.
A spokesperson said: "Customers’ habits are changing — they are now increasingly using branches where they work or they are using the 24-hour convenience of internet or telephone banking.
"Our network has to be fit for purpose and we have to ensure our branches are located in areas where they are used."
There are fears the closure will cause a knock-on effect, with other banks deciding to move from the area, as happened in Yarmouth.
Clive Fleury, chairman of Freshwater Parish Council, is urging residents to write to the bank’s head office.
He said: "It’s another nail in the coffin. When we start losing banks from our main shopping area, it is very sad. It’s another empty building and that’s not good for welcoming people into Freshwater."
He added: "I know banks are encouraging us to use electronic methods but I won’t. I prefer to speak to a person face to face."
HSBC said its branches were still an important part of banking, with £100 million being spent on refurbishments in recent years.
The spokesperson said: "Decisions like this are never easy but we are working with the small number of customers who use the branch to help them re-organise their finances ahead of the planned closure on December 6."