MONEY AND BANKING

Money

The currency in the UK is the pound sterling (£). There are one hundred pence (p) to a pound (£1 = l00p). Coins come in denominations of 1p, 2p, 5p, 10p, 20p, 50p, £1 and £2. All coins bear the Queen’s head on one side, but have different flip-sides, marking the different countries of Britain: three lions for England, a thistle or Forth Bridge for Scotland and a leek or dragon for Wales etc.

Notes come in denominations of £5 (green), £10 (brown), £20 (purple) and £50 (red). Banks in Scotland and Northern Ireland issue their own currencies in denominations of £1, £5, £10, £20, £50 and £100. Most shops accept these currencies but if they are refused you can exchange them at a bank.

Changing money

You can change money and travellers’ cheques at any Bureau de Change on the high street, in some travel agents, and at banks or some major post offices.

Be warned that the commission on these transactions can be high in some places (around 2 per cent with a minimum of £2). Check the exchange rate and any commission charges in advance. Many banks and post offices have abolished commission on all foreign exchange transactions and offer good exchange rates. Most travel agents such as Thomas Cook and Going Places also exchange foreign currencies commission-free. If you have a student bank account you can usually change your money commission-free at your bank.

Exchange rates (correct as of 14 May 2005)

The following is a brief guide to the current exchange rates. Please note that exchange rates are subject to change and fluctuate daily. For real time rates check online at www.reuters.co.uk/currencies.jhtml

Transferring/receiving money

The quickest way to send or receive money is by using Western Union (0800833833 or www.westernunion.co.uk) or Moneygram (0800 8971 8971 or www.moneygram.com). You can transfer money at main post offices around the UK. Money Gram has relatively few offices in the UK but Western Union has entered into a franchise agreement with many local shops, travel agents and bureaux de change in Britain. It takes around three minutes to send or receive money worldwide using these services. However, the commission charges are usually high.

An International Bank Draft is the cheapest way to send or receive money. To send a draft, simply go to your branch and specify the bank branch, the city and the country you want the money to be sent to. A draft for the amount will be issued after debiting your account. You’ll then need to post this draft to the receiver. If payment is urgent you can send or receive money directly to your bank account by telegraphic transfers. Telegraphic transfers from bank to bank can take up to three days and cost around £15. Foreign cheques take a long time (around three to four weeks) to clear and are subject to high commission charges.

Banking systems

Banks and building societies in the UK are generally open from 9.30am to 5.00pm, Monday to Friday, and some are open 9.30am to 12 noon on Saturday. High street branches operate full banking facilities including a bureau de change, while branches at universities or colleges usually offer limited facilities.

Cash machines/ATMs

There are plenty of cash machines available in shopping areas and there are also likely to be some on your university or college campus. Almost all bank cards issued around the world can be used in British cash machines. Just look for your card issuer symbol on the machine. However, do bear in mind the fact that some cash machines charge a fee for withdrawal (about £1.50 per withdrawal). You’ll be notified on screen before the withdrawal about any charges and you will have the option to cancel the transaction. Remember also that your own bank (in your own country) may charge you for card withdrawals.

Credit and debit cards

These are widely accepted across the UK. Almost all shops accept Visa and MasterCard – it is very rare to find a merchant that accepts one and does not accept the other. American Express, Diners, JCB, Maestro and Electron are also widely accepted. Discover Cards are not accepted in the UK. Some shops insist on a minimum transaction of £5 if you are paying by credit or debit card. Remember that you might be charged a foreign exchange transaction charge by your bank when using your card in the UK. Check with your bank before using your cards.

Some shops and supermarkets also offer a ‘cash back’ facility when you pay with a UK debit card. The minimum cash back is £10 and the maximum allowed is £50.

Most retailers now process payments using a ‘Chip and Pin’ facility. When paying for purchases your card is inserted into a verifying machine. Instead of signing you’ll be asked enter your PIN number using the key pad. If your card does not have the Chip and PIN facility then you’ll have to sign the receipt and hand it back to retailer.

POST OFFICE SERVICES

Post offices in the UK are generally open from 9.00am to 5.30pm, Monday to Friday, and 9.00am to 12 noon on Saturday. Some smaller post offices have their own operating hours and close early during the week. The standard cost for post within the UK is 30p for first class and 21p for second class, for a letter up to 60 grams. First class mail is quicker and is usually delivered the next day. Second class mail can take up to two or three days to reach its destination in the UK. Postcards or letters up to 20 grams to European Countries have a standard charge of 42p while for non-European countries postage is 47p for letters up to 10 grams. Special rates are available for printed matter or small packets. Check with your local post office before posting them. An Air Mail label is essential for all overseas letters. The post office also offers a Parcel Force service for sending parcels around the world. The cost of sending a parcel of up to 1kg within the UK is £3.60 by Parcel Force.

Important letters within the UK can be sent by recorded delivery, where a signature is obtained on delivery. This service is ideal when you need to prove that the items were received. You can use this service either first class or second class. There is standard fee of 66p on top of the postage.

Urgent letters within the UK can be sent by Special Delivery. This service guarantees delivery anywhere in the UK by 1pm the next day. The service costs £3.85 for a package up to 100 grams. For even more urgent letters, Special Delivery before 9am costs £7.95 for a letter up to 100 grams.

Urgent letters can be sent abroad by Swift Air. There is a standard fee of £3 (£5 for recorded) plus the standard air mail postage. Remember to fill in a CN22 customs declaration form if you are posting packages outside the European Union.

Stamps can be bought at many outlets including most newsagents, supermarkets and your students’ union shops. A notice advertising the sale of stamps will be displayed on the shop window. Stamps can also be purchased from automatic stamp dispensers located in places such as supermarkets, shopping malls and train or bus stations. You can also buy and print stamps from the Royal Mail website (www.royalmail.co.uk).

The post office provides a range of other services, including:

• paymentof TV licences
• paymentof Vehicle Tax on cars and motorcycles
• paymentof telephone, gas, electricity and water bills
• issuingand cashing of postal orders
• banking(selected banks only)
• acommission-free Bureau de Change
• InternationalMoney Transfer Service – Moneygram to send or receive money
• mailholding service
• redirectionservice when you move premises.

A Poste Restante service is also offered at all main post offices. You can receive mail anywhere in the UK at a main post office convenient to your location.

Post offices also offer other services including selling stationery and international telephone cards, fax facilities, film processing, and sending flowers or chocolates. Further details about Royal Mail are available on the web at www.royalmail.co.uk or you can call their customer services on 0845 7950 950.

INSURANCE

It is important to insure your possessions against theft or loss. There are many low cost schemes available for students. Insurance agents will be able to advise you on the different policies available. Endsleigh Insurance (www.endsleigh.co.uk and 0800 028 3571) is recommended by the National Union of Students and has offices on most campuses. Your university or college may also run a scheme for students living in a hall of residence or private houses. Contact the university insurance office for further details. Most banks also offer possessions insurance policies for students who open a student account.

If you are planning to travel around Europe or elsewhere it is worth buying travel insurance for the duration of your trip. Travel insurance for a trip to Europe costs around £12 for ten days.

Car insurance is available from a wide number of insurance companies and is often cheaper if you buy it on the internet. Students should expect to pay around £350 for third party insurance. Some insurers offer a ‘no claims’ discount on motor insurance policies so it is worth bringing letters from your insurers in your country if you want a ‘no claims’ discount. Reputable insurers are:

• Direct Line (www.directline.com)
• Norwich Union (www.norwichunion.com)
• AXA (www.axa.com)
• Egg (www.egg.com).