Two companies are now battling each other to be the first to install a free cash machine on an Oxford estate.

For the past five years more than 12,000 residents living in Blackbird Leys and Greater Leys have been forced to pay £1.75 per withdrawal to take money from cash machines on the estate.

After pressure from East Oxford MP Andrew Smith and the Oxford Mail, managers at the Royal Bank of Scotland (RBS) agreed to put in a free-to-use machine.

But independent firm, Bank Machine, has agreed to install a free hole-in-the-wall machine in Blackbird Leys Road and brought forward the date by two months to get it in place by November and beat RBS.

Ron Delnevo, managing director of Bank Machine, said: "We have had plans for this cash machine for a while but unlike other companies we haven't been running around looking for publicity or going to the local MP.

"People in Blackbird Leys can now forget about being fobbed off by banks and look forward to a free-to-use machine because we are actually going there.

"We are taking free-to-use machines to places the banks won't go.

"The banks weren't bothered in these areas before and now they've been caught with their trousers down.

"Our machine was going to happen next year but we've brought it forward to November so all this mess will stop and people in Blackbird Leys can get their cash machine."

Although Bank Machine has cash machines that charge, the new facility - to be installed at Martin's Newsagent in Blackbird Leys Road - will be free.

The Royal Bank of Scotland is currently in final negotiations to put a machine inside the Blackbird Leys Leisure Centre, Pegasus Road.

A spokesman said: "We hope it will be in place within the next few weeks but we are unable to confirm a date."

Campaigners have said people living in low income areas should not have to pay to withdraw their money from machines.

Mr Smith said: "It's good news for Blackbird Leys. I welcome Bank Machine just as I welcome the Royal Bank of Scotland.

"If cash machine providers are now competing to get free-to-use machines in for areas like Blackbird Leys, where people have been forced to pay charges in the past, then all to the good.

"I shall be keeping up my campaign to get free machines in Barton, Northway, Wood Farm, Rose Hill and other areas where they are needed."

Currently residents can only get to their cash by paying charges at machines outside Deltey's Supermarket in Blackbird Leys Road, Spar in Dunnock Way, The Bullnose Morris and The Blackbird pubs, Oxford Stadium in Sandy Lane and Gala Bingo at the Kassam Stadium.