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Scottish Currency - A Practical Guide For Tourists

Your essential guide to Scottish currency. Learn about banknotes, coins, exchange rates, and practical tips for using money in Scotland, ensuring a smooth and enjoyable trip.

Author:Liam Jones
Reviewer:Michael Rachal
Jan 09, 2025
26.9K Shares
359.4K Views
Scotland’s currency system is as unique as its rich cultural heritage, often leaving visitors and even some locals with questions about its nuances. Whether you're planning a trip to Scotland or curious about its economic identity, understanding Scottish currencyis essential. Beyond mere practicality, it provides fascinating insights into Scotland’s history, financial system, and ongoing political discussions.

1. What Is Scottish Currency?

What Is Scottish Currency
What Is Scottish Currency
Scottish currency refers to the banknotes issued by Scotland’s three major banks: the Bank of Scotland, the Royal Bank of Scotland, and Clydesdale Bank. These notes are denominated in pounds sterling (£), the official currency of the United Kingdom.
While Scottish banknotes are not technically legal tender (even in Scotland), they are widely accepted for transactions within the country. This distinction“legal tender” versus “accepted currency”often confuses visitors but doesn’t impact their everyday use.

Key Points:

  • Scottish currency operates under the broader pound sterling system.
  • Banknotes feature unique designs celebrating Scottish history and landmarks.
  • Coins are identical to those used throughout the UK.

2. A Brief History Of Scottish Currency

Scottish currency has a history as intricate as the nation itself. Before the 1707 Act of Union, Scotland had its own distinct monetary system. Following the union with England, the pound sterling became the standard, but Scotland retained the right to issue its own banknotes.

Key Historical Milestones:

  • 1695:The Bank of Scotland is established, becoming one of the earliest issuers of banknotes in the UK.
  • 1727:The Royal Bank of Scotland begins operations, introducing competition in note issuance.
  • Clydesdale Bank:Entered the scene in the 19th century, diversifying note designs.
  • 2009:New polymer banknotes were introduced to enhance durability and security.
Today, Scotland’s notes are as much a representation of its identity as they are a practical tool.

3. Money And Spending In Scotland

Money And Spending In Scotland
Money And Spending In Scotland
Planning a trip to Eagle Brae? Our luxury log cabin village offers the ideal retreat in the stunning Scottish Highlands. To help you get ready for your holiday, we’ve answered some of your questions about money, currency, and spending in Scotland.
See Also: Global Sports Events You Can't Miss: A Sports Fan's Bucket List

4. What Coins And Banknotes Are Used?

The currency in Scotland is pounds (£) and pence (p), with 100 pence making up one pound. Banknotes are available in £5, £10, £20, £50, and £100 denominations, while coins include 1p, 2p, 5p, 10p, 20p, 50p, £1, and £2.

5. Can I Use My Credit Card In Scotland?

Can I Use My Credit Card In Scotland
Can I Use My Credit Card In Scotland
Major credit cards like Visa and Mastercard are widely accepted throughout Scotland. However, keep in mind that some places may not accept American Express. It's also a good idea to have some cash on hand for emergencies.

6. Are There Cash Machines?

ATMs are generally easy to find in cities and towns, but they can be scarce in smaller villages and remote areas. At Eagle Brae, located in a rural setting, the nearest cash machines are in Beauly village, about a 20-minute drive away. Some ATMs offer free withdrawals, while others may charge a fee.

7. Key Features Of Scottish Banknotes

Key Features Of Scottish Banknotes
Key Features Of Scottish Banknotes
Scottish banknotes are distinct from those issued in England and Wales, boasting unique designs and features. Here’s what sets them apart:

Design Elements:

  • Historical Figures:Notes often depict notable Scots, such as Walter Scott or Mary Somerville.
  • Landmarks:Famous Scottish sites like the Forth Bridgefeature prominently.
  • Distinct Sizes and Colors:Each denomination has a specific size and color to aid recognition.

Security Features:

To prevent counterfeiting, modern Scottish notes incorporate advanced security measures:
  • Holograms and raised prints.
  • Transparent windows on polymer notes.
  • UV-light-responsive elements.
These features ensure the notes are both practical and a celebration of Scottish heritage.

8. What About Travel Cards And Currency Exchange?

Currency exchange services are available at exchange bureaus for travelers. The nearest one to Eagle Brae is at Beauly Post Office, where you can order foreign currency for collection in-store. They also offer a TravelMoney Card, a pre-paid multi-currency card that operates independently of your bank account.

Is Tax Included In The Price?

In Scotland and across the UK, value-added tax (VAT) is already included in the listed prices for goods and services in shops, restaurants, and more. The price displayed is the final amount you pay.

9. When Should I Tip In Scotland?

When Should I Tip In Scotland
When Should I Tip In Scotland
Tipping isn’t a major part of the culture in Scotland or the UK, but tips for good service are typically appreciated in cafes, bars, and restaurants, usually around 10%. However, there's no need to tip if a service charge is already included in your bill.
In the Highlands, it’s common to tip for services like deer stalking ghillies and fishing ghillies. Other situations where tipping may be customary include visits to hairdressers/barbers and taxi rides.
We hope this has clarified your questions about money in Scotland. For more travel tips and advice, check out the Eagle Brae blog. To learn more about our luxury log cabins, nestled on a secluded hillside in the Highlands, browse all our cabins here.

Cost Of Living

Scotland is generally more affordable to live and work in compared to other parts of Europe and cities like London, Zurich, Paris, Dublin, New York, and San Francisco.
When looking at the cost of living (excluding accommodation) in Scotland’s cities, Aberdeen is 35% cheaper than New York City, Dundee is 43% cheaper, Glasgow is 34% cheaper, and Edinburghis 30% cheaper.
In terms of rent, Aberdeen is 76% more affordable, Dundee is 78% cheaper, Glasgow is 68% cheaper, and Edinburgh is 61% cheaper than New York City.

10. Scottish Currency Vs Pound Sterling: What’s The Difference?

Scottish Currency Vs Pound Sterling What’s The Difference
Scottish Currency Vs Pound Sterling What’s The Difference
While Scottish notes and English notes are both denominated in pounds sterling, they differ in their issuance and perception. This distinction can occasionally lead to confusion outside Scotland.

Key Differences:

  • Issuers:Scottish banknotes are issued by private banks, whereas Bank of England notes are issued by the UK’s central bank.
  • Acceptance:In theory, Scottish notes are accepted across the UK. However, in practice, some English businesses may hesitate to accept them.
  • Design:Scottish notes feature local symbols and personalities, offering a unique aesthetic compared to English banknotes.
Despite these differences, the exchange rate remains identical, as both fall under the pound sterling system.

11. The Building A New Scotland Fund

The Scottish Government plans to establish a transformative new investment fund to give an independent Scotland a strong foundation.
Over the first decade of independence, the Building a New Scotland Fund would allocate up to £20 billion for significant infrastructure projects.
Research indicates that infrastructure investment can stimulate economic growth.
The funds would be directed towards initiatives such as energy-efficient homes, green transportation, enhancing digital and mobile connectivity, and increasing the availability of affordable housing.

12. Using Scottish Currency For Tourists

Using Scottish Currency For Tourists
Using Scottish Currency For Tourists
Navigating Scottish currency can be straightforward if you’re prepared. Here are some practical tips:
  • ATM Withdrawals:Most ATMs in Scotland dispense Scottish banknotes. However, some may provide Bank of England notes.
  • Card Payments:Credit and debit cards are widely accepted, reducing the need for large cash transactions.
  • Exchange Abroad:Exchanging Scottish notes outside the UK can be challenging. It’s advisable to convert them into Bank of England notes before leaving.
  • Acceptance in England:If you plan to travel within the UK, be aware that some businesses in England may be unfamiliar with Scottish notes.
By keeping these tips in mind, you can avoid potential inconveniences.

13. Challenges And Controversies Around Scottish Currency

Scottish currency, while functional, has faced its share of controversies:
  • Refusal Outside Scotland:Some businesses in England and abroad refuse to accept Scottish notes, citing unfamiliarity or policy.
  • Political Implications:Discussions around Scotland’s independence often include debates about establishing a new, independent currency.
These challenges highlight the complex relationship between Scotland’s economic identity and the UK as a whole.

14. Future Of Scottish Currency

Future Of Scottish Currency
Future Of Scottish Currency
As the world shifts toward digital payments and cryptocurrencies, the future of physical currency including Scottish notes is uncertain. Additionally, the ongoing debate about Scottish independence raises questions about whether Scotland might establish a distinct currency in the future.

FAQs About Scottish Currency

Can Scottish Notes Be Used In England?

Yes, Scottish notes can be used in England. However, they are not as commonly recognized, and some businesses may hesitate to accept them.
No, Scottish notes are not considered legal tender, even in Scotland. However, they are widely accepted for transactions.

Where Can I Exchange Scottish Notes Outside The UK?

Exchanging Scottish notes outside the UK can be difficult. It’s recommended to convert them to Bank of England notes before traveling.

What Are The Main Differences Between Scottish And English Banknotes?

Scottish banknotes differ in design and issuers but hold the same value as English notes since both are denominated in pounds sterling.

Will Scotland Get Its Own Currency In The Future?

If Scotland becomes independent, the possibility of a distinct currency is a significant topic of discussion. However, no definitive plans are in place.

Final Thoughts

Scottish currency is more than just a means of exchange; it’s a symbol of Scotland’s history, culture, and economic autonomy within the UK. While it may present unique challenges particularly for tourists understanding its features and usage ensures a seamless experience. As Scotland continues to evolve economically and politically, its currency will remain a fascinating and integral part of its identity.
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Liam Jones

Liam Jones

Author
Liam Jones has made it his mission to prove that adventure doesn’t need a hefty budget. Having traveled to over 40 countries, he specializes in finding affordable ways to experience the world, from the best street food in Bangkok to hidden gems in Lisbon. Liam’s travel tips have reached thousands of readers, empowering them to see the world on a shoestring budget without sacrificing quality. With a deep passion for local cultures, he continues to share his travel hacks, ensuring adventure remains accessible to all.
Michael Rachal

Michael Rachal

Reviewer
Michael Rachal believes that luxury lies in the details. With over 20 years of experience in the luxury travel industry, he has crafted hundreds of bespoke itineraries for clients seeking personalized, unforgettable experiences. Whether guiding clients through private cultural tours or curating culinary journeys with world-renowned chefs, Michael ensures that each trip is tailored to perfection. His ability to anticipate needs and exceed expectations has earned him a reputation as a leading expert in luxury travel.
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