What Is the Currency Used in Scotland?

While Scotland is part of the United Kingdom, its currency system has distinct characteristics. This unique setup reflects Scotland’s rich financial history and independent banking traditions.

The Official Currency

The official currency in Scotland is the British Pound Sterling (GBP), the same unit used across the United Kingdom. One pound (£) is divided into 100 pence (p). Coins in Scotland are uniform with those found throughout the rest of the UK, issued by the Royal Mint, and include denominations such as 1p, 2p, 5p, 10p, 20p, 50p, £1, and £2.

Understanding Scottish Banknotes

Scottish banknotes are a unique aspect of the UK’s currency. Unlike England, where banknotes are issued solely by the Bank of England, several commercial banks in Scotland print their own. The main banks are the Bank of Scotland, Royal Bank of Scotland, and Clydesdale Bank. These notes come in denominations including £5, £10, £20, £50, and £100, with the Royal Bank of Scotland also issuing a rare £1 note.

Each issuing bank features distinct designs, often depicting Scottish historical figures, landmarks, or wildlife. For instance, Bank of Scotland notes feature Sir Walter Scott and Scottish bridges, while Royal Bank of Scotland notes showcase figures like Nan Shepherd or Mary Somerville. These banknotes are promissory notes, meaning the issuing banks are required to hold an equivalent value in Bank of England banknotes or gold as backing. All three Scottish banks generally use a similar color scheme for corresponding denominations to aid identification.

Using Scottish Banknotes Outside Scotland

Scottish banknotes are legal currency throughout the United Kingdom, but their status differs from “legal tender,” especially outside Scotland. “Legal currency” means their issuance is approved by the UK Parliament and they are backed by Bank of England securities. “Legal tender” refers to the settlement of debts where a creditor must accept payment. Notably, Scottish banknotes are not legal tender even within Scotland; only coins hold legal tender status there for certain amounts.

This distinction means Scottish notes, while valid, are not legally obligated to be accepted by retailers or businesses outside Scotland, especially in England. Acceptance is often at the discretion of the business, which may be unfamiliar with their appearance. For travelers, using card payments is advisable, as major credit and debit cards like Visa and Mastercard are widely accepted across Scotland and the UK. If using cash, be prepared for potential non-acceptance outside Scotland, though UK banks generally accept them for deposit or exchange.