What to do with old coins and banknotes

If you’re interested in clever ways to bolster your savings, what about all those old coins and banknotes you’ve got lurking in the bottom of a drawer at home? Those that you’re not sure what to do with?

Over the decades bank notes and coins have come and gone, but while you might not be able to spend them in the corner shop or the pub, they could still have some value – and many of us know we’ve still got a few lying around.

So if you finally go through your drawers and empty the kids’ old money boxes, you could see what you’ve got; and the good news is much can still be converted into cash to spend today.

The better news: some coins you find might be worth even more than you can get for them by simply converting them at the bank.

What can I do with old pound coins?

Let’s start with the old pound coin, one of the most popular coins that many of has still hanging around.

The old £1 coin launched in 1983, replacing the old £1 banknote, and went out of circulation in October 2017 to be replaced by a thinner, lighter 12-sided coin, which are more secure and harder to counterfeit thanks to the distinctive 12-sided shape, the combination of two metals (gold and silver) and a hologram.

That means the old round coins are no longer legal tender and as such shops, restaurants and other retailers aren't accepting them. So if you’ve got any left, you’re probably keeping hold of them because of the nostalgic journey of looking at the different emblems that emblazon them (and if you want to remind yourself of all the different designs of the old £1 coins, the Royal Mint website has plenty of pictures for a great nostalgia trip).

But should you stumble across any old £1 coins at home, there are a few options open to you that can actually convert them to cash:

Pay them in at your high street bank.

Many high street banks let you deposit old £1 coins into your bank account or trade them in. Just be aware that this is done at your bank’s discretion – as these coins are no longer legal tender, they aren’t under any legal obligation to accept them.

We contacted a number of banks to find out their current policies on returning old coins, and the following confirmed to us the rules you’ll need to follow:

Barclays: Customers can exchange old coins in its branches – amounts up to and including £100 can be exchanged but if you’ve got more than that the money will need to be paid into your bank account.

Lloyds Banking Group: Customers can deposit and exchange old coins into Bank of Scotland, Halifax or Lloyds Bank accounts.

HSBC: Old notes and coins can be paid into customers' accounts.

Nationwide: Accepts old coins from its existing customers, but they must be paid into your account.

Santander: Customers can pay old coins into their account at any Santander branch.

Virgin Money: The bank accepts old coins, but again, only from existing customers and they need to be paid directly into your account.

Pay them in at the Post Office.

If your bank doesn’t have a branch, or there’s not one near you, you might be able to deposit your old coins into your bank account at your local Post Office.

A spokesperson for the Post Office told Saga Money: “We do still accept ‘old’ pound coins over the counter – but they have to be in good condition. And people can deposit them into their bank account.

“The Post Office has an agreement with over 30 banks and building societies known as the ‘Banking Framework’ which allows customers of these banks and building societies to withdraw cash, deposit cash, deposit cheques or check their balance at any of our 11,500 Post Offices.”

You can check whether your bank or building society participates in this scheme at the Post Office website.

Another option, if you aren’t worried about keeping the money, is to donate your old coins to charity. Many charities welcome old coins and bank notes and you can check their websites to see if you can send them in by freepost or ask at your local charity shop.

Sell them on eBay or vintage websites.

If you’re thinking that the most you can get for an old pound coin is, well, a pound… think again.

If you have one of the rarer designs, your 100p piece could be worth more than its face value. The “Royal Arms” was the most common design, but there were 41 different image and date combinations in circulation, and certain coins could fetch you as much as £20.

However, even if a coin is rare, it’s not necessarily valuable. Oliver Reece, British coin specialist at Baldwin’s, explains: “The 2016 £1 coin with a reverse design depicting the heraldic supporters of the United Kingdom by Gregory Cameron [also known as the ‘Last Round Pound’] is a little harder to find compared to other pound coins. But I think a coin dealer would be unlikely to offer any more than face value for it.”

That said, it might still be worth a punt on eBay. Or you could look into vintage websites such as Vintage Cash Cow to see how much money you might be able to get for your old coins.

Kimberly Day, coin expert at The Britannia Coin Company, part of RWB Auctions, says: “eBay can help you identify the current market price for old coins. Use the auction site to see what coins like yours are selling for though beware, some scammers price high to catch unsuspecting collectors.”

She adds: “Remember that coin dealers and antique shops make their profit by selling your old coins and banknotes on for a higher price. You may not get the prices you see on the internet but selling all your old coins or notes in one go can take the hassle out of the process.”

Keep your old £1 coins.

If you don’t want to pay your old coins into your bank account, an alternative is to hold on to some of your old £1 coins as a keepsake or pass them on to grandchildren.

Coin expert Kimberly Day told us: “From 2024 onwards we will start seeing an increasing number of notes and coins featuring King Charles III in our change. Money with the image of the late Queen Elizabeth II is still legal tender and will not be completely phased out anytime soon, but at some point long in the future it will disappear from our pockets. It’s unlikely that the coins in your change will become rare and valuable as time passes, but it does not hurt to keep a few back just in case.”

What about old banknotes?

Figures from the Bank of England show that in April 2023, there were still 445 million old paper banknotes in circulation in the UK, worth almost £9 billion, even though the old paper £20 and £50 notes stopped being legal tender in October 2022.

The paper £5 note was the first banknote to be overhauled to a polymer version (you’ll recognise the ‘plastic’ feel) featuring Sir Winston Churchill in 2016, and the £10 note followed in 2017 with an image of Jane Austen. The new £20 note, featuring the artist JMW Turner, launched in February 2020, and the new £50 note was brought into circulation in June 2021, with an image of scientist Alan Turing.

As with the redesigned £1 coin, these new notes have been introduced for greater security. Features including a transparent window with a portrait of the late Queen (soon to be replaced with a portrait of King Charles III), colour-changing pictures and holograms, all make the notes harder for criminals to forge.

This is not the only benefit, however. The new polymer notes are more durable, and this should be better for the environment as they won’t need to be replaced as frequently. They are also easier to keep clean and, while not indestructible, they are significantly stronger – and should withstand any accidental spins in the washing machine or exposure to high temperatures.

As with old coins, there are several options when it comes to exchanging your old banknotes:

Pay them in at your high street bank or Post Office.

Many banks will still accept old notes as deposits from customers. And again, you might be able to pay them into your bank account at the Post Office.

You can also exchange old paper banknotes for the same value in current polymer notes at 30 selected Post Office branches – you can view the full branch list on the Bank of England website. This includes the old paper £5, £10, £20 and £50 notes from the last series.

You can swap up to £300 every two years and you will need to bring a form of ID with you.

Give them to charity.

Again, many charities will accept old banknotes as donations. Check charity websites or pop into your local charity shop to find out.

Exchange them at the Bank of England.

The Bank of England accepts banknote exchanges by post with a completed application form.

However, it stresses that money is sent at your own risk and the service is only suitable if you have very old bank notes that can’t be exchanged at the Post Office or want the money paid into a personal or business account.

You might also be asked to provide proof of ID such as a passport and proof of address such as a driving licence or utility bill.

Exchanges can also be carried out in person at The Bank of England, Threadneedle Street, London.

What about damaged banknotes?

If you’ve found a banknote that’s been damaged, the Bank of England says it will exchange it providing at least half of it remains. To do this, you will need to fill in a damaged banknote application form and post it to the Bank of England with all the remains of the banknote. You will also need to provide a proof of ID and address.

Most claims are assessed within a month and you’ll be reimbursed by electronic payment if you’re successful.

The Bank of England says it receives thousands of claims to replace damaged banknotes each year. In 2022, it received:

8,463 torn or part notes
1,925 fire and flood damaged notes
1,627 washed notes
1,236 contaminated notes
674 chewed or eaten notes

Are old notes worth anything?

Many factors determine the value of old notes – if you think you have a valuable note, it’s best to get it valued by an expert. Here are some of the main things to consider:

Condition: The better the condition, the more it will be worth
Rarity: Collectors will always seek out the notes that are hardest to find
Low serial numbers: The note contains two serial numbers, and notes beginning with AA01, followed by a low number for the second prefix, could be worth more. This is because these are the earliest prints which were often donated to organisations and individuals that were involved in its development. The first polymer £5 note, featuring Winston Churchill, for example, with the serial number AA01 000001 was given to Queen Elizabeth II in 2016
Special serial numbers: There is also speculation that dates related to the figures on each banknote could also be worth more. For example, the birth and death dates of Jane Austen as serial numbers on relevant banknotes
Age: Get any notes that are pre-1960 valued. You might be surprised what they could be worth.

You can search for specialist coin dealers and shops through the British Numismatic Trade Association or do a simple search online to look for dealers in your area.

A good clear-out can be worth a pretty penny.

If you’ve got a feeling that you’ve got a few old coins and bank notes stashed somewhere, a hunt for them could certainly pay off – even if you can only exchange them for new currency of the same value. The same goes for any banknotes that have been through the wash or been torn in two and you’ve stuffed them in a drawer somewhere.

If you’re extremely lucky, you might just happen upon a rare coin or banknote left inside an old coat pocket, jammed into a piggy bank or cupboard drawer and find yourself sitting on a tidy little profit now you know what to do with it.