Money Matters: Navigating Cash, Cards, and Currency in the UK

Ready to unlock the secrets of managing money during your travels in the UK? This episode is packed with essential insights for navigating cash, credit, and debit card payments efficiently. We start by diving into the intricate world of British currency, outlining the different denominations of the pound sterling and the importance of understanding its nuances - especially when it comes to recognising banknotes from different regions like Scotland and Northern Ireland.

You'll hear about the practicalities of using cash versus cards, highlighting the pros and cons of each method. Many visitors wonder whether cash is still relevant amidst the rise of cashless transactions, and we explore that dilemma while providing practical tips on when to use each form of payment. 

We also shed light on the best practices for using cards in the UK, emphasising the necessity of choosing sterling over your home currency to avoid hefty fees and ensuring you're primed for seamless transactions. 

Whether you're a first-time visitor or a seasoned traveller, this episode offers valuable tips to enhance your travel experience, from where to withdraw cash safely to strategies for avoiding unwanted charges. Our engaging narratives aim to make your trip financially satisfying and tension-free. 

Join us as we unravel these money management tips and ensure your visit to the UK is unforgettable. Don't forget to subscribe and share your thoughts! Happy UK travel planning!

📝 Show Notes - Episode 144

🎧 Listen to next

• Episode 132 - London 2025: 12 Essential Tips for Planning your Perfect Trip
• Episode 47 - Practical Tips for visiting the UK
• Episode 7 - Tips for first time visitors to England

Chapters

• 0:22 Managing Money in the UK
• 15:43 Cash vs. Card Payment Methods
• 1:16:01 Currency and Essential Travel Tips

Transcript

Speaker 1: 0:00

wondering how to manage your money when visiting the UK. In episode 144 of the UK Travel Planning Podcast, I'm answering one of the most common questions we get how to pay for things during my visit, from using cash, credit and debit cards to contactless payments. I'll cover the pros and cons of each option, plus share some essential travel money tips.

Speaker 2: 0:21

Welcome to the UK Travel Planning Podcast. Your host is the founder of the UK Travel Planning website, tracey Collins. In this podcast, tracey shares destination guides, travel tips and itinerary ideas, as well as interviews with a variety of guests who share their knowledge and experience of UK travel to help you plan your perfect UK vacation. Join us as we explore the UK from cosmopolitan cities to quaint villages, from historic castles to beautiful islands, and from the picturesque countryside to seaside towns.

Speaker 1: 1:03

Hello and welcome to this week's episode of the podcast. Today we are diving into one of the most common questions we receive from travellers via email or in our UK and London travel planning Facebook groups how should I bring money to the UK? Understanding the best way to manage your money while travelling is key to a stress-free experience, and in this episode I'll break down everything you need to know about using cash, credit and debit cards and contactless payments in the UK. We'll also cover the pros and cons of different payment methods, the cards we use abroad and why, and essential travel money tips. So let's jump in. So let's talk about UK currency, what you need to know. So let's start with the basics.

Speaker 1: 1:42

The currency used in the UK is the British pound sterling. You'll see it abbreviated as GBP. Although the UK was part of the European Union for many years, it actually never adopted the euro. So pound sterling banknotes come in four main denominations £5, £10, £20 and £50. Paper banknotes are not legal tender in the UK anywhere. Only the new, more durable polymer notes are accepted, so make sure no one tries to give you change using paper notes. That's really important. I will also just say at this point as well is that if you are traveling over and your bank in the US or Australia has given you 50 pound notes, if you are traveling over and your bank in the US or Australia has given you 50 pound notes, ask for smaller notes, because actually trying to break up a 50 pound note can be quite difficult. So ask for 20 pound or smaller if you bring any cash with you.

Speaker 1: 2:39

So there are also eight different coins. One pence and two pence coins are made from copper. Five pence, 10 pence, 20 pence and 50 pence are made from silver. 1 pound and 2 pound coins are dual colour and made from a kind of cupric nickel and brass. Nickel P stands for penny and there are 100 pennies in a pound. Now, it's not that straightforward. Things do get interesting. Scotland also issues its own banknotes, but they're still considered to be pound sterling, so they're legal currency throughout the UK. That said, some retailers in England might be hesitant to accept Scottish notes, so keep that in mind. English banknotes are accepted in Scotland. Northern Ireland also produces its own banknotes, but these are rarer than pound sterling notes. You won't be able to spend these outside of Northern Ireland, and if you still have some notes when you leave Northern Ireland, you can swap them for English notes at a bank.

Speaker 1: 3:32

If you'd rather avoid this confusion altogether, using a credit or debit card is honestly the easiest option. So question should you use cash in the UK? Now let's talk about cash versus card. Many travellers wonder if they should bring cash to the UK, and the answer is it depends.

Speaker 1: 3:49

There are some benefits to using cash in the UK. Firstly, it's easy to budget your daily spending so you can keep track of your finances. You'll find some small businesses. Taxis or parking meters may still only accept cash. Another reason is that a few retailers, especially smaller shops and cafes, don't accept cards for purchases under £5, plus. Banknotes and coins make a great souvenir if you're traveling in the UK. However, the drawbacks of using cash in the UK is that many places are now cashless, especially in London. Carrying cash can be bulky and less secure, and if your cash is lost or stolen, it's harder to recover and you might also be left with leftover money at the end of your trip.

Speaker 1: 4:32

Now my recommendation is use cards if you can, but bring a small amount of cash for things like tips, small purchases and places that don't accept cards. Some tour guides, taxi drivers etc. Will accept tips on a card machine, but many will prefer cash, and obviously that's in pound sterling if you're going to leave a cash tip. But generally speaking, for most transactions, especially large ones like entry to an attraction, a meal out or a theatre ticket, you'll be better off using a card. And you know, I use my card all the time. I can't even think about the last time that I saw any cash, because most of the time, well 99.9% of the time, I will just use my card or contactless.

Speaker 1: 5:15

Now let's talk about cards, what you need to know about using cards in the UK. So credit and debit cards are the most convenient way to pay in the UK. Visa and MasterCard are widely accepted, but be aware that American Express is less commonly accepted outside major cities or in smaller shops or restaurants. So let's go through some essential do's and don'ts when paying by card in the UK. First of all, always pay in pound sterling. If you're given the option by a cashier or by a cash machine to pay in your home currency or pounds, always pay in pound sterling. If you're given the option by a cashier or by a cash machine to pay in your home currency or pounds, always choose pounds. Otherwise you could be hit with an unfavorable exchange rate. Always notify your bank before traveling to the UK. This avoids your card being flagged for fraud and then putting a stop on it. Thirdly, check for international transaction fees before you travel. Some banks charge fees for foreign transactions in addition to an exchange rate fee. So if your card is one of these, consider signing up for a travel-friendly debit or credit card. These cards should ideally have no foreign transaction fees, so you won't have to worry about racking up high fees when spending abroad. So I recommend bringing at least two payment methods with you, such as one Visa and one MasterCard, just in case things don't work or aren't accepted. And remember, don't rely solely on Apple Pay or Google Pay. Have a physical card as a backup just in case your phone dies or malfunctions.

Speaker 1: 6:38

Now let's talk about ATM withdrawals and exchange rates. If you do need to get cash, withdrawing from an ATM is the best option. These days, they're much more common than bank branches, and you'll find cash machines at most banks, supermarkets and train stations. However, there are a few things to keep in mind. Check if your bank charges foreign ATM fees. These can quickly add up over the course of your trip and you could get a nasty surprise on your bank statement when you get home.

Speaker 1: 7:04

Some ATMs, like those in smaller stores, charge withdrawal fees. They're not huge, usually about £1.50 or £2, but I'd avoid them if you can. It will say on the ATM home screen whether it charges a withdrawal fee or not and, if in doubt, ask Always choose to be charged in pounds rather than your home currency to get the best exchange rate. Now remember, when entering your PIN, be sure to shield it from prying eyes and be aware of your surroundings when withdrawing money from any ATM machine. And if you'd prefer to use a bureau d'achance to get cash in the UK, try to avoid using the airport currency exchanges because you'll usually get a worse rate. Instead, go to high street bank or post offices. Some major supermarkets like Tesco or large department stores like Mark and Spencer's also have a bureau de change desk. And if you're exchanging a large amount of money, I do recommend shopping around online or in person for the best rate if you've got the time. Exchange rates will vary from one bureau de charge to another, so do check.

Speaker 1: 8:04

So best cards for travel in the UK. If you want to avoid foreign transaction fees and get the best exchange rate, consider using a travel-friendly debit or credit card, as these are designed for travellers. They usually have no foreign transaction fees. Another option is to sign up for a pre-loaded card such as Revolut. Revolut offers competitive exchange rates and no foreign transaction fees. Don't rely solely on Revolut, however, as it isn't accepted everywhere.

Speaker 1: 8:28

The card that we use is the Wise card. It offers low fees and a competitive exchange rate. You also get a digital or physical card and you can make ATM withdrawals. You can hold multi-currency accounts and move your money from one account to another, and it is particularly useful if you're combining a trip to the UK, so with a trip to the Republic of Ireland or some other places in Europe. So we've used Wise all over the world and we do love its flexibility and reliability. If you do decide you want to apply for a Wise card for your trip, make sure you apply a few weeks in advance to a live town for processing and delivery.

Speaker 1: 9:05

Now, before I wrap up, I recently asked my UK travel planning and London travel planning Facebook groups for any money-related questions they'd like me to cover in this podcast. So I've covered most of them already, but the following questions were the most frequently asked. So question one do I need to bring more than one credit or debit card to the UK? So mindset that is yes. Always bring at least two different payment methods one Visa, one MasterCard. And while we're on payment methods, I also recommend not relying solely on your phone for contactless payments. If your phone gets lost, damaged or stolen, or simply if your battery dies, you'll be stuck. So always carry a backup physical card.

Speaker 1: 9:40

Question two can I use US dollars or euros in the UK? No, the UK only accepts pound sterling. Some airports or tourist shops may take euros, but the exchange rate will be terrible. So bring pounds and pay in pounds, and that includes for tipping. Question three should I use a credit or debit card? So credit cards are best for large purchases like hotels, tickets and shopping, while debit cards are good for everyday spending and ATM withdrawals. Just make sure your card doesn't have high transaction fees. So in conclusion, to sum it up, the best way to manage your money in the UK is to use a combination of a travel friendly credit or debit card and a small amount of cash. Avoid airport exchanges, use ATMs wisely and safely, and always pay in pounds to get the best rates.

Speaker 1: 10:30

If you're looking for more tips on traveling to the UK. Check out our UK Travel Planner website for helpful guides or join our Facebook groups for real-time advice from fellow travelers. Now, thank you for tuning into this episode of the UK Travel Plan Podcast. If you found this information useful, don't forget to subscribe, leave a review and share this episode with fellow travellers. That leaves me to say until next week. As always, happy UK travel planning. Thank you for tuning in to this week's episode of the UK Travel Planning Podcast. As always, show notes can be found at uktravelplanningcom. If you've enjoyed the show, why not leave us feedback via text or a review on your favourite podcast app? We love to hear from you and, you never know, you may receive a shout out in a future episode. But, as always, that just leaves me to say until next week. Happy UK travel planning.