Currency

The local currency in the UK is the Pound sterling £. Your dollar (USD) currently buys a bit less than one Pound (GBP). Check the current exchange rate so you can get a sense for your anticipated cost of living as you look into various on-site expenses at xe.com – USD to GBP.

Pounds (symbolized by £ or GBP) are issued in £50, £20, £10, and £5 notes, and the pence coins are issued in £2, £1, 50p, 20p, 10p, 5p, 2p, and 1p denominations. The Pound is also used throughout the United Kingdom, so you can easily travel from country-to-country with at least enough to get around upon arriving.

Currency & Exchange Rates

Before You Leave Your Home Country

• Contact your bank
  
  • Before getting on the plane, make sure you call your bank. There are a few reasons for doing so. If you plan on using your home country's debit or credit card, ensure that you notify your bank of your travel dates before you leave. If you don't, your bank may think your information has been stolen and block your card.
  • It is also important to know about any foreign transaction fees your bank of choice may have for using your card in another country. It is important that you are aware of your bank's foreign travel policies for card usage before making purchases abroad. This could save you a lot of money during your time in England.
• Get an Understanding of the Exchange Rate
  • The exchange rate determines how many Pounds you’ll get for your dollar, before transaction fees are deducted. Be warned: not all financial institutions offer the same rate.
  • Dollars can be exchanged for Pounds at most banks. You’ll probably only need to do this once, since it’s not wise to bring your whole trip’s worth of funds (unless it’s a short one) in dollars. Once you have exchanged any cash you arrived with, if you need any more cash, you can withdraw it from ATMs like normal (see below).

There are a few things to keep in mind: 

• The exchange rate may vary among institutions. 
• You will need to bring your original passport in order to complete a currency exchange.
•  Traveler's checks are not commonly accepted.
• If you need to exchange money outside of business hours, you can do so at the airport or an 'independent bureau of change', but try to avoid these places as they charge handling fees and may not have the best exchange rates. 

Banks & ATMs

• Banks in the UK will exchange dollars for pounds.
• ATMs are available in most towns and cities  and are often located in town centers.
• The Post Office is the best place to exchange dollars.
• Normal banking hours in the UK are Monday-Friday from 9am-2pm. The majority of banks are closed on weekends and national holidays. Some are open Saturday morning - check your local area.
• Using ATMs in the UK may come with additional fees from your home bank, usually around 2-3% for international withdrawals and a set fee for using ATMs not affiliated with your bank. Always use a recognized  Bank ATM when possible- other ‘private’ ATMs can add additional charges.
• To minimize the fees, you can withdraw larger amounts less frequently, and make sure that the ATM card you use is linked to a checking or money market account, not a savings account. 
• Verify that your PIN is a four digit number. You will need to use a 4-digit number as a password.
• If you're having trouble finding an ATM that works with your card, ask your home financial institution for the location of a machine that functions on your network. 
• Be cautious when using ATMs, try to use machines that are attached to banks and are located in well-lit, familiar locations. Be aware of your surroundings when entering your PIN or withdrawing cash. 
•  If you're having trouble finding an ATM that works with your card, ask your home financial institution for the location of a machine that functions on your network.
  

Cash Advances

You may be able to use a credit card (rather than an ATM card) to obtain cash advances from ATMs. Interest rates on cash advances, however, normally begin to accrue from the date on which the money is withdrawn. Because of this, credit card cash advances can be very expensive and should only be used as a last resort. 

Credit and Debit Cards 

In the UK, most small purchases (under £10) are made with cash though increasingly with ‘chip and pin’ tap.  Most businesses and cafes will accept credit or debit cards.  Credit cards are more convenient for large purchases, such as airline tickets, hotels, clothing, and gifts. 

Tipping

• Tipping is not a customary in the UK due to standardized living wages. However, if you are in a group of 5 or more people then it is customary to add a gratuity of 10-15%. Some restaurants apply a service charge automatically to your bill but this is not obligatory if there are few of you  or there was an issue with the food or service.
• Check the small print of the menu to see if the establishment has a service charge (ex. 10% larger groups).  
• Tips are not normally given to taxi drivers, hair dressers or in bars (the  exception to the latter is if there is table service, so check before ordering).
• When ordering at the bar or food stand- tips are not standard but a small gesture is  welcome (£1 or some spare coins).
  

Wiring Money

If you find yourself in an emergency and need to access money, the best option is to use an international wire transfer service such as Moneygram or Western Union. Both these services provide general information and FAQs on how to perform an international wire transfer on their websites, which can be useful for you to understand the process and fees involved. This method can be a bit slower than an ATM withdrawal but it is an option available to you.