MSE News: HSBC to dispense more £5 notes

Paulgonnabedebtfree

I tend to keep several fivers to give my customers change. It saves giving them all coins.

agrinnall

There is a major downside to dispensing £5 notes from ATMs. Most ATMs only have two hoppers for notes, so can only dispense two denominations. At the moment that is mainly £10 and £20. If the £20 notes are replaced by £5 then the machine will only contain half the money so it will run out in half the time it does now. While the banks have automated systems to try to replenish ATMs before they run out if it's happening twice as often then it is more likely that you'll find the ATM closed when you want money, and that is more likely to happen overnight when you may be most desperate for the money.

I think we need a major overhaul of our currency - get rid of coins below 10p and add a £5 coin to replace the £5 note.

young_money_saver

I don't think that £5 coins would work. you were even saying yourself to get rid of coins but to introduce bigger coins aswell? I think that the currency should be the following.
notes:£100, £50, £20, £10, £5, £2, £1
coins:1p, 2p, 5p(should'nt be smaller than the 1 and 2's though), 10p, 20p, 50p
this is my personal opinion but I prefer notes to coins.

JacksterD

agrinnall wrote: »

There is a major downside to dispensing £5 notes from ATMs. Most ATMs only have two hoppers for notes, so can only dispense two denominations. At the moment that is mainly £10 and £20. If the £20 notes are replaced by £5 then the machine will only contain half the money so it will run out in half the time it does now. While the banks have automated systems to try to replenish ATMs before they run out if it's happening twice as often then it is more likely that you'll find the ATM closed when you want money, and that is more likely to happen overnight when you may be most desperate for the money.

I think we need a major overhaul of our currency - get rid of coins below 10p and add a £5 coin to replace the £5 note.

Great idea.

When I worked in a shop 1p and 2p coins were a pain - I had to give them out as change all the time but we didn't take many in so I kept having to go to the boss to get more coins, but to get more coins the safe had to be set and it took a few minutes before I'd be able to get the coins and I was never sure if I would be able to give the next customer the right change - it was very knife edge stuff

gt94sss2

agrinnall wrote: »

There is a major downside to dispensing £5 notes from ATMs. Most ATMs only have two hoppers for notes, so can only dispense two denominations. At the moment that is mainly £10 and £20. If the £20 notes are replaced by £5 then the machine will only contain half the money so it will run out in half the time it does now.

There are currently around £1.25 billion-worth of £5 notes in circulation in the UK, or 249 million notes, compared with 640 million £10 notes and more than 1.5 billion £20 ones.


Because £5 notes get used more regularly than higher denomination notes, they have a much shorter lifespan, with the average £5 note lasting for only one year before it becomes too damaged to use, compared with £50 notes which last for five years or more.

This has been caused by banks not putting many £5 notes in their ATMs - hence the Bank of England is keen for more to get into circulation - and customers prefer getting notes as change rather than lots of coins.

I think some banks have also realised that if there are more £5 notes in circulation its good news for them as more coins will be paid in at branches..

Regards
Sunil

[Deleted User]

The lack of £5 notes has been a money making con for the banks for years. Less people having £5 notes to spend means no £5 notes in shops tills to give out in change. This means the shop has to give out more coinage (especially pound coins) for change. While all this extra coinage costs the shop to buy from the bank.

huw01

More fivers in circulation can only be a good thing. How many times I've been given a load of pound coins in change from a tenner when a fiver would have doen the trick. Surely it must also only be good for the government as there would be less pound coins in circulation and therefore less dudd ones as well ?

AHAR

nzseries1 wrote: »

Noooooooooooooooooooooooooooooooo! I hate coins!! Bring back £1 notes!

Half of them were held together with Sellotape from what I remember!

izools wrote: »

Every tried to give a bus driver a £10 or £20 note? Yeah. You'll be walking.

Hehe I always try to make sure I've got change when I take the bus to avoid unpleasant bus driver wrath!

I was in Japan earlier this year and one of the few types of ATM that work with foreign cards there only dispensed 10,000 yen (<£70) notes. Thankfully nobody there bats an eyelid at them no matter what you spend them on. I don't remember the last time I saw a £50 note...

Saeed

Bring back the gold standard. These paper notes are a 'fiat' currency, a complete con and not worth anything. Printing of notes is what causes inflation, boom/bust etc...

kriss1977

Does no one remember when it was common practice for fivers to be dispensed from cash machines? I'm not talking ancient history but when I was a student abot 15 years or less ago.

I was horrified when they stopped letting you withdraw min £5 from the machines as there were still plenty of small purchases you could make for less than a fiver and it was easier to get change for a bus without buying something in a shop that you didn't want or need!

It is sad but true that once you break a note, you are far more likely to spend the rest of the change soon after and my spending habits def unintentionally went up after I could only withdraw min £10 at a time from the cash machines. My bank statements prove that! Knowing the problem doesn't always make it easier to prevent it.

I figured it was the banks way of getting people to spend more.

Bring back the fivers in machines!! I know my spending/saving will only be aided as there are still plenty of small everyday purchases out there for less than a fiver and then I will only have to withdraw what I need!!


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