Want notes not coins? Banks don’t care about our cash, investigation finds

For the first time in almost half a century the Treasury has ordered the Royal Mint to stop producing any 1p or 2p coins.

The crackdown on coppers comes at a time when all our cash is under threat – with banks preferring that we pay for goods online or with cards because it saves them money.

The Mail on Sunday sent reporter Toby Walne out on to Kensington High Street in West London weighed down with £50 of coins to see if they are willing to manage the simple task of taking his money.

Reporter Toby Walne went out on to Kensington High Street in West London weighed down with £50 of coins to see if they are willing to manage the simple task of taking his money Toby was given one Chinese yuan, two Indian rupees, an American dime and an assortment of euro cent pieces Metro Bank's Bhavin presents our reporter with two crisp £20 notes, a fiver and four pound coins. Service at last Metro Bank's Bhavin presents our reporter with two crisp £20 notes, a fiver and four pound coins. Service at last

Metro Bank’s Bhavin presents our reporter with two crisp £20 notes, a fiver and four pound coins. Service at last

 NATWEST: Do not use our machine

The swanky interior looks like a hotel reception area with its purple soft furnishings except that installed on the wall is a box the size of a photocopier with a hand- taped printed message saying, ‘This machine is for NatWest customers only.’

At last I have found somewhere that takes small change – but sadly not mine.

Frustratingly for me, a couple of its customers use the machine as I queue and it sounds like someone has won the jackpot on a Las Vegas one-armed bandit.

But at the counter Julie is adamant that I cannot use it. As I am not a customer, the bank will not allow me a spin on the fruit machine.

‘You get a voucher from the machine and we then transfer the money directly into your bank account – but only if you bank with us.’

POST OFFICE: WILL only weigh coins

A local post office is often the bank of last resort when branches shut down – so perhaps this will be my saviour. Assistant Sudhir allows me to weigh my pot of coins for free on the parcel scales – 9.6kg – while he goes round the back in search of coin bags. The branch will not let me put money in any account unless I put coins in the bags.

CLYDESDALE: Take a stroll next door

The ultra-modern frontage is full of light bulbs, mirrors and pictures of fairy cakes. There is a message on the wall – ‘Are you financially fit?’ Lifting this bulk of coins is certainly giving me a work-out.

But there is no hope of me shifting my collection here. Its ‘Studio B’ branch is owned by Virgin Money and without any embarrassment boasts it is ‘where new ideas are born’.

Bruno, a sharply dressed bank assistant, steps up to pass on his wisdom. ‘Across the road next door the Metro bank will be able to help.’

METRO: He’s right…success at last

There is a warm handshake from assistant Reuben as he spots me flaked out on a chair by a ‘Magic Money Machine’. I am exhausted after lugging my pile of cash up and down the street all afternoon.

I explain apologetically that I am not a customer. But thankfully he does not mind and points to the free coin machine. ‘We want to help all customers with a service they want – even if they bank elsewhere.’

Declining the offer of help I pour in my full jar. It takes a couple of minutes for all the coins to fall through the drain on the top of the machine. A computer screen reveals a total of £49.43 – it turns out my ‘£50’ from HSBC includes a handful of rejected foreign coins.

The machine’s display screen asks if I want to donate the 43p to a charity supporting teenagers with cancer – and it seems churlish to decline. A slip pops out which I hand over at the counter, where Bhavin presents me with two crisp £20 notes, a fiver and four pound coins. Service at last.

Another way to ring the changes

Another option for your coin mountain is to feed it into a fee-charging machine at a supermarket.

This converts your coins into a voucher to be exchanged for cash at the check-out. These machines charge a ‘coin processing fee’ of typically 10.9 per cent – costing you £1.09 for every £10.

Natalie Ceeney, author of the Access To Cash Review published earlier this year, cannot understand why banks are not routinely providing this service for free, especially as the technology is readily available.

A former boss of the Financial Ombudsman Service, Ceeney says: ‘Coins are a vital part of budgeting for us all.’

Banks can refuse but shops must take coins

Banks are entitled to turn you away with your jam jar of cash.

But you can ask in advance for a few clear plastic money bags that should be handed over for free.

In each bag you can collect £1 in coppers – either 1p or 2p but not a mixture; £5 in 5p or 10p coins; and £10 in 20p or 50p pieces. For £1 and £2 coins the maximum in a bag can total up to £20.

Bank clerks do not count the coins one by one but simply put the bags on a set of scales.

Banks usually only accept your sorted bags if you are a customer.

The British Coinage Act 1971 says shops must accept a certain amount of change. You can pay for anything up to the value of 20p using just copper 1p or 2p coins.

You can purchase items up to the value of £5 with 5p or 10p pieces.

You can make a purchase of up to £10 with 20p and 50p coins, while for £1 and £2 coins, there is no limit. 

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