Ruislip & Eastcote & Northwood Gazette
TAKE NOTE ...
Paper money is soon to become obsolete, and there are billions of pounds worth still out there – so cash in now or risk losing out, says HARVEY JONES
AT THE end of next month, your old paper £20 and £50 pound notes will no longer be legal tender, and the message is simple – use them or lose them.
The Bank of England will withdraw their legal tender status after September 30. Once that deadline has passed, shops and businesses won’t accept them.
So it’s time to start checking whether you have any kicking around the house.
You might have one or two in an old purse or wallet, a jacket or trouser pocket, the glove box of your car or stuck behind the sofa.
Alert older friends or family members who prefer to use cash, says Alina Jaffer, financial expert at Virgin Money: “They may not be aware of the upcoming deadline.”
We aren’t talking about small change here. The BoE estimates there are still more than 300 million paper £20 banknotes worth more than £6bn in circulation, and another 160 million paper £50 notes, worth more than £8bn.
With a total value of £14bn, it is big money, so don’t squander it.
Pound notes no longer in your pocket
Every so often, the Bank of England introduces new notes, and shortly after, phases out the old ones.
Sometimes they are scrapped altogether, such as £1 notes, which were withdrawn in 1988, and replaced by the pound coin.
All bank notes feature Queen Elizabeth II on the front, and a famous historical figure on the back.
The last bank note to be withdrawn was the £10 Series E, which featured famous naturalist Charles Darwin.
It was first issued on November 7, 2000 and ceased to be legal tender on March 1, 2018. Before that, the £5 Series E showing Quaker prison reformer Elizabeth Fry was pulled from circulation on May 5, 2017.
From the end of September, they will be joined in the monetary history books by the economist Adam Smith, who features on the £20 note, and 18th-century engineers Matthew Boulton and James Watt, who share top billing on the £50 note.
Paper £20 notes started to be withdrawn from circulation on February 20, 2020, the same date that the polymer £20 featuring the artist JMW Turner entered circulation.
Paper £50 notes were withdrawn from June 23, 2021, replaced by the polymer £50 note featuring Enigma code-breaking scientist Alan Turing.
The BoE has had less time to withdraw these paper £50 notes, which is why relatively more remain in circulation.
The Turing £50 means that all denominations – £5, £10, £20 and £50 – are now printed on polymer, a synthetic material that is both more durable and harder to counterfeit.
Protective features include two see-through windows, raised print and a two-colour, high-tech security foil. The new notes are being dispensed by ATMs, banks and building societies, and Post Offices across the country.
Old coins get withdrawn too. The old “round pound” stopped being legal tender on October 15, 2017, replaced by the new 12-sided one.
Are paper notes being withdrawn everywhere?
Paper notes will be withdrawn across England, Wales, Scotland and Northern Ireland.
So in Scotland, paper £20 and £50 notes issued by Clydesdale Bank,
Royal Bank of Scotland and Bank of Scotland will no longer be legal tender after September 30, 2022.
The same applies to paper £20 notes issued by Bank of Ireland, Northern Bank Limited (which trades as Danske Bank), and Ulster Bank.
How to recognise which notes are being withdrawn
Paper banknotes feel different to polymer ones. The old £20 is purplish in colour, has Adam Smith’s face and signature, and a quote from him saying: “The division of labour in pin manufacturing (and the great increase in the quantity of work that results).”
The £50 is grey, orange and red, and features Matthew Boulton on the left with the quote: “I sell here, Sir, what all the world deserves to have – POWER.”
On the right, there’s a picture of James Watt and the following quote: “I can think of nothing else but this machine.”
Their fame may live on but they no longer have a place in our pockets.
Spend, spend, spend… or save
Your old paper £20 or £50 notes are still legal tender and will be accepted until September 30.
Shops cannot refuse them before that date. If you don’t want to spend them, you can go to the local branch of your bank and deposit them into your account.
Given the pace of branch closures, if you don’t have one nearby, try your local Post Office. It will accept withdrawn notes as a deposit into any bank account you can access through its Everyday Banking service.
This allows customers who have an account with one of a list of major banks to pay in cash or cheques, withdraw money or check their balance at their local Post Office counter.
You can find a full list of banks on the scheme at postoffice.co.uk/ everydaybanking.
Barclays, HSBC, Lloyds and NatWest all participate, as well as Bank of Ireland, Bank of Scotland, the Co-op, Santander, Starling, TSB and Virgin Money, plus a number of smaller banks, and Nationwide Building Society.
Some people may be tempted to hang on to old notes for sentimental reasons, or the hope that they will rise in value over time. This is highly unlikely though. With a few exceptions, typically those with low or symbolic serial numbers, most bank notes are only worth face value, which inflation will erode over time anyway.
The Charities Aid Foundation suggests that people who miss the deadline could give old notes to their favourite good cause.
Larger charities are likely to continue to accept older notes even if no longer legal tender.
Don’t panic if you miss the deadline
You can still convert your old paper banknotes into legal tender, and any other discontinued ones you find, after September 30.
It takes a bit more effort though as many banks will no longer accept or exchange withdrawn paper notes or coins. Some still will, with Barclays, Halifax, Lloyds, Nationwide, NatWest and Santander all telling website moneysavingexpert.com that customers can deposit old coins and notes into their accounts.
Otherwise, you may be able to deposit them at the Post Office.
If that doesn’t work, you can always exchange old series notes and coins with the Bank of England, which honours every bank note ever printed.
You can either visit its premises in the City of London, or send by post: Dept NEX, Bank of England, Threadneedle Street, London EC2R 8AH. You send banknotes in the post at your own risk and will not get reimbursed if they go astray or are stolen.
Complete a postal exchange form for individuals (or businesses if relevant) and send it with your notes and photocopies of your ID as proof of identity.
This should be one photo ID, such as your passport, and one proof of address, say a recent bank statement or utility bill. Do not post original ID documents.
The BoE will pay money into your bank account, normally within 10 working days. It can also pay by cheque or, if you live in the UK and your exchange is worth up to £300, in new banknotes. It won’t send banknotes overseas. For payments to an overseas bank account, please provide the BIC/ SWIFT Code and IBAN or account number. The Bank can only pay into accounts that accept sterling (GBP), and all payments must be sent via SWIFT transfer. It does not charge for this service, but your bank might.
If you’re in the area, you can visit the BoE in person at the Bank of England Counter, Threadneedle Street, London, EC2R 8AH. It is open from 9.30am to 3pm Monday to Friday. However, you can expect long queues and waits of more than an hour.
For further details on returning notes, see the Bank of England website – bankofengland.co.uk
Your old paper £20 or £50 notes are still legal tender and will be accepted until September 30