The Lloyds Bank in High Street, Old Fletton, is to shut in November.
A spokesperson for Lloyds Bank said it aims to redeploy everyone currently working at the bank to an alternative branch.
However, she said: “Some colleagues may have requested to take voluntary redundancy.”
The bank was refurbished in 2008.
The spokesperson added: “The Old Fletton Peterborough branch will close on November 9, 2016. This branch has been identified for closure because of the changing way customers choose to bank with us, which has resulted in customers using it less often.
“The majority of customers also now regularly use alternative branches or other ways to bank such as online and telephone banking to complete their banking needs. We apologise for any inconvenience that this may cause and have informed customers of the closest alternative branch.”
The spokesperson said the number of personal customers using the Old Fletton branch is going down each year by 24 per cent and that it only has 51 regular weekly personal and business customers.
She added: “84 per cent of our personal customers already use other branches, such as Westgate, Peterborough branch.
“The Post Office is a short walk away and we will be proactively talking to customers about the service they offer. The nearest free to use ATM is also a very short walk away.
“Customers will have their accounts realigned to Westgate, Peterborough less than two miles away, and there will be no other impact to the way they manage their accounts.”