When is £5 Not £5?

GirlInTrouble

Sounds like the start of a joke doesn't it?

I didnt really know where to post this, I just finished watching the new advert for the £5 coin to commemorate the reign of our Queen
There's a website 5poundcoin but I cant post the link

They say you just pay the FACE value of the coin i.e £5 for this £5 coin but on screen it says "Legal tender only in Jersey"
Im very surprised that this coin is not legal tender in mainland UK but they are saying it has a face value, that is not what most people consider the meaning of face value and I did think that the coins previously released are legal tender. I may be wrong in that but this seems very wrong.

racing_blue

Jersey issues its own pound notes and coins. Jersey is not part of the UK. There is currency union (so notes can be exchanged at par) but Jersey notes and coins are not "legal tender" in the UK. They are however "legal currency", so creditors and traders may accept them if they choose.

Is this a coin issued by Jersey?

kidmugsy

A good way to proceed in such a discussion is for the commenter to find out what "legal tender" means.

atush

But even with countries who have 'legal tender' currency (such as scotland, IOM, etc) you will still not be able to spend the money as businesses wont accept it?

I imagine the coin is being sold as a collectible so as to have a higher value many years hence. In the mean time, should you pick one up at face value and not want it, you can exchange it in a uK bank.

bigfreddiel

It's quite common for Jersey and/or Guernsey to issue commemoritive coins especially £5 ones for £5 and free postage. You could spend them on the channel isles, or get a bank in the UK to exchange it for £5

They won't ever be worth much more than £5 so they're not exactly money spinners. You usually see them advertised in the weeken press like the telegraph.

The Royal Mint also issues many £5 coins, again for £5 and free postage. More interestingly they have now issued three £20 coins and two £100 coins. Again they won't ever be worth much more than face value, and as they're issued by the Royal Mint they're legal tender.

Cheers fj

kidmugsy

atush wrote: »

But even with countries who have 'legal tender' currency (such as scotland, IOM, etc)

Scotland doesn't have "legal tender" currency, except for the Royal Mint's coins.

As I said only a moment ago "A good way to proceed in such a discussion is for the commenter to find out what "legal tender" means."

GirlInTrouble

All I know is its confusing for most people to be confronted with something that looks like money which may or may not be accepted as payment for something. (This coin is being released here in the UK)

So what is legal Tender then? The point of my post was not to be some expert or smarty pants, it was to point out that many people dont have the time to research every single thing and could quite possibly be confronted with such a coin and not know if it is or isnt legit and possibly be caught out.

Years gone by my mother used to look forward to these £5 coins but she believed them to be acceptable coinage which If my understanding is correct this new "coin" is not

If it is not £5 then my own personal opinion is that it should not say it is a £5 or it should say Jersey in big font. By all means disagree with me but Im sure Im not the only one who thinks as I do.

Anyhow I just thought it an interesting little something to share with you not trying to cause an uproar ;-)

bigfreddiel

GirlInTrouble wrote: »

All I know is its confusing for most people to be confronted with something that looks like money which may or may not be accepted as payment for something. (This coin is being released here in the UK)

So what is legal Tender then? The point of my post was not to be some expert or smarty pants, it was to point out that many people dont have the time to research every single thing and could quite possibly be confronted with such a coin and not know if it is or isnt legit and possibly be caught out.

Years gone by my mother used to look forward to these £5 coins but she believed them to be acceptable coinage which If my understanding is correct this new "coin" is not

If it is not £5 then my own personal opinion is that it should not say it is a £5 or it should say Jersey in big font. By all means disagree with me but Im sure Im not the only one who thinks as I do.

Anyhow I just thought it an interesting little something to share with you not trying to cause an uproar ;-)

These coins do say JERSEY in big font - no confusion

fj

GirlInTrouble

They do? Thanks for the info, I havent had a close look at one.
I was in a hotel one day and my friend was given a Scottish note and she was confused at that
Anyhow I must have a mental block about this lol

esuhl

GirlInTrouble wrote: »

All I know is its confusing for most people to be confronted with something that looks like money which may or may not be accepted as payment for something. (This coin is being released here in the UK)

So what is legal Tender then? The point of my post was not to be some expert or smarty pants, it was to point out that many people dont have the time to research every single thing and could quite possibly be confronted with such a coin and not know if it is or isnt legit and possibly be caught out.

Years gone by my mother used to look forward to these £5 coins but she believed them to be acceptable coinage which If my understanding is correct this new "coin" is not

If it is not £5 then my own personal opinion is that it should not say it is a £5 or it should say Jersey in big font. By all means disagree with me but Im sure Im not the only one who thinks as I do.

Anyhow I just thought it an interesting little something to share with you not trying to cause an uproar ;-)

"Legal tender" is a form of payment that MUST be accepted for the settlement of debts. IIRC, Scottish bank notes are not legal tender (even in Scotland).

This is very different to what may or may not be accepted as payment. An English £50 note might be "legal tender": if you owe someone £50 and try to hand them a £50 note to settle the debt, they cannot refuse to accept it and sue you. However, any shop can say "£50 notes not accepted" because, when you buy something, you aren't settling a debt; it's an immediate transaction.

I think most shops would refuse to accept rare/unfamiliar/collectible coins/notes simply because, being unfamiliar with the note/coin, it would be harder for them to identify counterfeits.

So long as banks will accept the coin as a deposit, then it doesn't matter (in terms of the value of the coin) whether it is legal tender or whether any shop accepts it. If you ever need to "cash in" the £5 you have in... er... cash... then just take it to a bank. If you're lucky you might be able to sell it to someone as a collectible for more than £5, as its rarity might increase the price someone would pay for it.

kidmugsy

esuhl wrote: »

"Legal tender" is a form of payment that MUST be accepted for the settlement of debts.

An English £50 note might be "legal tender"

Though not in Scotland: none of the Bank of England notes are legal tender in Scotland, nor (as you said) are the Scottish notes.

As for the OP, if you think the shops near you will accept a Jersey coin, then, fine, it's useful. If not, not.