/ Money

Bank notes that are built to last

New fiver

The introduction of new £5 plastic bank notes across the UK is just a few months away. They’re supposed to be difficult to damage and tricky to fake. How do you feel about the new notes?

Winston Churchill famously said: “To improve is to change. To be perfect is to change often” and there are a whole host of changes on the new £5 note that bears his face.

The Bank of England’s first £5 plastic banknote was unveiled last week and is supposedly cleaner, safer and stronger – but do we really need these improvements?

Plastic fantastic?

These bank notes will be able to survive a 90°C trip through the washing machine or the bite of a bulldog.

Each note is so much more resistant to dirt and moisture that it will typically last two and a half times longer than a paper note, saving the Bank of England £100m in printing costs over the decade. It also incorporates plenty of new security features, making it far more difficult to counterfeit.

These advantages will also be incorporated into the new £10 and £20 notes being introduced in the future, bringing an end to 320 years of paper money in the UK.

The cost of new money

However, there are suggestions that these new banknotes will cause more problems than they solve.

Business of all sizes will have to upgrade cash-handling hardware, such as vending machines and ATMs. It’s been estimated this will cost the British economy around £236m – almost two and a half times more than the printing savings over the first decade.

The Bank of England also concedes that the new notes can stick together, so shoppers need to be more wary of handing over two notes instead of one.

This sounds like a lot of faff for what is becoming an increasingly cashless society.

Prepare for plastic banknotes

The new £5 note enters circulation on September 13 this year. You can continue using the paper notes until May 2017, after which they will cease to become legal tender. At this point, you’ll need to exchange them at The Bank of England.

A plastic £10 note is expected next summer, with a new £20 note following in 2020.

What are your thoughts on plastic banknotes? Can you see yourself still using cash in 10 years’ time?

Are you a fan of the new £5 plastic banknotes?

Yes (49%, 392 Votes)

Not sure (30%, 240 Votes)

No (21%, 172 Votes)

Total Voters: 804

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Comments

I don’t know why this didn’t happen decades ago. Plastic notes were introduced in Australia in 1988 and all notes there have been plastic since 1996. I never found problems with them sticking together, any more than new paper ones (which they tend to do if fresh from the guillotine). As for the cost of updating money handling machines – this would be incurred for a new design whether plastic or not.

Jan Letts says:
13 June 2016

The notes in Canada are the same they take a little getting use to as they don’t crunch up so beware of giving too many notes at one time.

Shugg says:
14 June 2016

The Scottish ones are fine, but you very rarely get any, so goodness knows where they are (I live in Edinburgh). Hand one over in a pub and I still get comments about them. Canadian notes are terrible, as you cannot fold them, so they spring out of your wallet. I took to warming them and forcefully folding them. Isle of Man has had plastic notes for years and by on large they’re OK.

It’s the March of Time, but I can’t help but think they’re trying to make it as awkward as possible to use notes in the hope we all go cashless.

Cashless is “penciled in ” for 2025/35 Shugg and then you lose real control of your money .

JohnT says:
18 June 2016

If they’re so much better for handling, durability and forger resistance, the why not make a plastic one pound note? After all, wasn’t the argument a cost-saving one, mainly concerning durability (to be like a Euro wasn’t mentioned), when coins were introduced. Now imagine the savings in transport costs, in handling, and the great improvement in forgery resistance (where the one pound coin was a complete failure), which could be made by bringing back a plastic one pound note.

John-why not make a plastic £1 note= cash machines and the billions to convert them , who pays . In any case £1 sterling coin will be like the old threepenny bit and probably the same value soon so the value will be worthless in the future so no point.

A trick that won’t be possible to play on anyone with plastic notes is one I saw years ago on the French equivalent of Candid Camera, La Caméra Cachée. An unsuspecting taxi driver is hired to take a member of the Camera crew to his house and is invited in so that he can get paid. They go into this big room where dozens of paper bank notes are hanging on a line as if they had been freshly printed and the taxi driver is asked how many he would like. Some taxi drivers scarpered quickly, but others were happy to take a few.

Or maybe the trick could be played by using a laminator?

Received my new passport the other day [thankfully marked ‘European Union’] and the range of new security features is most impressive, including perforations, transparent sections, raised text, holograms, metallic images, things you can only work out when you hold it up to the light, and even my own signature embedded in it. This’ll cut immigration at a stroke!

Interesting comment especially in view of the EU referendum result, John.

Fans of the new polymer £5 bank note should be pleased to know that it’s been launched in England and Wales today. For those of you who are keen to get you hands on the new note you’ll probably have to wait about a week to get one. Cash machines in London, Manchester, Birmingham, Leeds, Hull and Cardiff will be the first places to stock the plastic note, but only around 7% of cash machines issue £5 notes and most bank branches are expected to have the notes over the next week or so.

I have not seen any of the plastic notes yet. Would someone like to send me some so that I can evaluate how well they survive in washing machines and whether the local shops will accept them?

wavechange, please send 5 £10 notes and an sae and I’ll provide you with the same number of plastic fivers. Let us know how you get on. Alternatively the Scots could let us know their experience as they’ve been using them for around a year (that’s if any Scot would admit to possessing a five pound note). 🙂

Hmm seems like a raw deal to me 😉

Northern Ireland has had plastic notes in circulation since October 1999! Scotland has been trialing plastic bank notes since March 2015. But the Clydesdale will now do a full roll-out of the new notes later this month, then the Bank of Scotland and Royal Bank of Scotland will follow in October.

I think I’ll decline Malcolm’s generous offer. 🙂 I’ve spent a couple of weeks in Scotland since the plastic notes were introduced but did not see one of them.

Polymer banknotes should trump rubber cheques.

On a serious note [!] I don’t know what I’m going to light my cigars with in future.

Watch out John somebody might take you seriously and think you were the projected image of the fat capitalist lounging back in his leather padded chair a cigar in his mouth , champers in one hand and his other hand is grasping a pile of big bucks . A smile is on his face as his right foot rests on the back on one of his workers while the shoe on his other foot is being polished by a down at heel shoe-shine boy , a waiter enters the room with the Times on a silver platter and bows as he presents it to him , he then complains of a crease in the newspaper and growls at the waiter who retreats backwards a la Queens servant in her presence , reaching the door he trips and the tray goes crashing to the floor and the words —FIRED ! issue from the tycoons mouth.

Quite right too! You’re fired – what is the world coming to? This use of the word “trump” again – must be planted here by some crafty schemers across the water or in murky parts elsewhere.

One attribute, I’ve heard, of plastic notes is they can be prone to sticking together. I’m looking forward to visiting the cash machine to see it this is fact or fiction.

How about some “penny shares” sir!

At least its still money issued to the public ,even if its fiat money, just wait till the US/EU/UK do away with it and we are “using ” virtual money then we will have lost control of our money . At least under the Gold standard banks/ governments were limited in their borrowing , and note over long term gold/silver keeps going up in value . If several large countries round the world are buying up gold for their reserves it shows what they think of the fiat money and recently when a depositor in Germany wanted his gold out he was refused . The US also refused to repatriate a large quantity of German gold to the German government , when asked they were only given a limited quantity , suddenly gone quiet on the matter.

Are bit coins plastic, metal or fictitious? I’ve never understood their concept, but they’ve always sounded like bit cons. Haven’t heard much about them of late.

Investing money in scarce commodities that have use is a good idea, even if only decorative. Many metals and minerals are vital to industry.

There is political intervention involved in bit coins , they are ,in fact, competition to the hegemony of the “Almighty Dollar ” . They represent an alternative currency and in a way a “threat ” to the established Big Banks , they are a type of virtual money that is “open source ” . Even so I would rather invest in gold than bit coins although big time hackers hold up computer systems for bit coins , like ransom-ware hackers holding companies and individuals to ransom . They are paid for services rendered over the web.

Cash will always be needed. Buses, taxis, carboot and jumble sales, buying from local bootsale apps, kids pocket money, weighing machines, vending machines, arcade games, giving to the homeless to name a few things cash is vital for

I hope and pray it stays that way Wendy.

I don’t want to boast about my wealth, but I now have a new five pound note – in change from the newsagent for the Lottery. First impressions are good; it clearly does not have a paper feel but neither is it too plasticky – just a matt smooth finish. It will crease (I keep a folded a reserve note behind the card holder in my wallet as an emergency fund, not used unless I’m really stuck) and it folds nicely into 3 but the creases largely come out when it is removed. About 7% smaller, but no bad thing. I haven’t tried a wad to see if they stick together, nor tried washing or ironing – not rich enough yet, but the Lottery…….?

I hope they will feed into the ticket machine at the railway station; probably so as it’s just been upgraded with a new card reader and they surely would have done the banknote tray at the same time . . .

My 1st 4 came from a cash machine in Swindon yesterday.

They look a bit like toy money,
“But it doesn’t matter cause I’m packing plastic
And that’s what makes my life so blimmin’ fantastic”
(Read more: Lily Allen – The Fear Lyrics | MetroLyrics )