Finance


Currency

Whether it's change for your bus fare or a supermarket shop, you'll probably be dealing with UK currency on a daily basis.

The following information should give you a head start in getting to grips with the coins and notes in circulation in the UK.

Coins

The pound, £, is the central unit of currency in the UK.

One pound (£1) is divided into 100 pence (p) and coins are in use with values of 1p, 2p, 5p, 10p, 20p, 50p, £1 and £2. All coins have the Queen's head on one side (heads) and a symbol on the other (tails).

Notes

Notes in circulation have values of £5, £10, £20, and £50.

For current exchange rates visit: http://uk.finance.yahoo.com/currencies/converter/

Types of bank account

Current account

This is your basic account which is used for day-to-day purchases and deposits.

This type of account normally comes with a cashcard which you can use to withdraw money from cashpoints (ATMs) up to a daily maximum limit.

Cashpoints are usually accessible 24-hours a day and located on the walls of banks and in some shops.

Please note that if you use the cash machine of a different bank you may be charged for taking money out. The machine will warn you if this is the case.

A current account is important because it allows you to set up a regular payment, normally called a Direct Debit. Your tuition and accommodation fees are usually paid as Direct Debits.

Other bills, such as mobile phone bills, are usually directly debited from your account.

Savings account

It is a good idea to open a savings account if you intend keeping a lot of your money in your account which isn't used regularly.

You will receive a higher interest payment from the bank if you keep money in a savings account.

The money may not be as accessible and you should check carefully the method for moving or withdrawing your money.

You will not be able to setup a Direct Debit from a savings account.

Opening a bank account

To open a UK bank account you will require the following documentation:

Opening hours

Banks are normally open daily between 9.30am and 3.30pm (09:30 - 15:30), Monday to Friday. Some of the major branches open for longer hours.

Cards

Cashcard: Visa Debit / Switch (Maestro) / Solo

Your cashcard will usually have a symbol on it which says one of the following:

Visa Debit and Switch (Maestro) cards can be used to pay instead of cash in most shops.

The money goes electronically directly out of your account.

Solo cards work in the same way but are not as widely accepted.

Many shops display symbols of the cards they accept, but if you are unsure whether your card will be accepted you should ask.

Credit and store cards

It can be quite difficult for international students to get credit or store cards. However it is possible you will be offered one, especially if you are remaining here for more than 12 months.

If you have a Visa or Mastercard credit card from your own country, you will be able to use it at most shops and restaurants in the UK.

American Express is commonly accepted but not at all shops. If you are in doubt, ask the shop assistant.

Credit cards

Banks and companies may offer you a credit card. You make purchases using your credit card and receive a monthly bill.

If you make purchases on your credit card you should ensure that you have enough money to pay the bill.If you do not pay the bill, you will incur interest and charges. A credit card can come with special offers and advantages, so it is always worth researching the best deal.

Store cards

Many large department stores, including Debenhams, Marks & Spencer and House of Fraser offer a storecard account. These usually work like credit cards but offer you special discounts in the store.

Loyalty cards

Most supermarkets and some shops may offer you a loyalty card.

Popular loyalty cards include:

You cannot pay with these cards but if you hand them to the cashier at the time of payment you will collect points depending on how much you have spent. These points can be redeemed for money-off vouchers or may entitle you to special offers.