Warning to EVERYONE with a piggybank or coin jar, as new £1 coin comes in

Cash in before round pounds are withdrawn in October

MONEYSAVINGEXPERT.COM

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For immediate release 27 March 2017

Warning to EVERYONE with a piggybank or coin jar, as new £1 coin comes in

Cash in before round pounds are withdrawn in October

The new 12-sided £1 coin will join the change in our pockets from tomorrow, and the current round version will stop being legal tender in October. So seek out any old £1 coins you may have and save or spend them before then. The UK’s leading consumer website MoneySavingExpert.com has put together some tips for getting rid of the old coins.

Steve Nowottny, news and features editor at MoneySavingExpert.com, says: "This is an important warning for dedicated savers and spare-change hoarders alike. Empty your piggybanks, upend your coin jars and scrabble behind the sofa to get all your pound coins together – then spend or bank them before October.

"Of course, you’ve a few months left yet to sort it. But it’s worth doing it now – with piggybanks and coin jars in particular it’s all too easy to squirrel money away and forget about it altogether."

What’s happening to the old £1 coins?

The current round version will stop being legal tender on 15 October 2017, which means they won’t be accepted in shops.

What will I be able to do with my old £1 coins?

Some banks and building societies have told MSE they will accept the old £1 coin after 15 October, but only from their own customers. So if you’re left with old pound coins after the deadline, you may need to open an account with a new provider and deposit them there if your current bank won’t play ball.

What about old fivers?

Plastic fivers have already started to replace the older, larger fiver, which will stop being legal tender on 5 May 2017.

Technically banknotes are produced by the Bank of England and not the Royal Mint (which produces coins). So even after 5 May the old fiver is covered by what’s effectively a Bank of England ‘buy back guarantee’. You’ll be able to exchange old £5 notes with the Bank of England in London, in person or by post (at your own risk). What’s more, while they’re under no obligation to do so, many banks and building societies say they will accept the old fivers from their own customers.

Should I continue to save in a piggybank?

Taking old change to the bank may be a bit of a faff, so it’s much better to spend or save £1 coins now. But you don’t have to abandon your piggybank savings plan – they’re a great way to show children how to save. You can simply replace the old £1 coins with a note or other coins.

Piggybank savers should also consider going the whole hog and depositing their cash in a UK-protected bank or building society. The Financial Services Compensation Scheme now protects savers up to £85,000 if a bank or building society goes bust AND savings in a top savings account will earn interest.

What’s more, some kids’ savings accounts offer rates to compete with their adult counterparts (some regular-saver children’s accounts pay up to 4%). So if your child saves in a piggybank, it’s worth considering if you can extend their financial education by encouraging them to put their money in the bank and make it work.

-ends-

Notes to editors

How notes and coins are changing

DATE

EVENT

28 MARCH 2017

New ‘12-sided’ £1 coin in circulation

5 MAY 2017

Old ‘non-polymer’ £5 note withdrawn

15 OCTOBER 2017

Old £1 coin withdrawn

SEPTEMBER 2017 (DATE TBC)

New polymer £10 note launched

2020 (DATE TBC)

New polymer £20 note launched

See our guides for more information on top savings accounts and savings accounts for kids.

For more comments, please contact:

Katie Watts

Mob: 07875 415 378
katie.watts@moneysavingexpert.com

About MoneySavingExpert.com: MoneySavingExpert.com is dedicated to cutting consumers’ bills and fighting their corner. The free-to-use consumer finance help resource aims to show people how to save money on anything and everything, and campaigns for financial justice. Set up in 2003 for just £100, its free-to-use, ethical stance quickly made it the UK’s biggest independent money website, according to internet ranking site Alexa.com, and the number one ‘Business and Finance – Business Information’ site, according to Hitwise. It has more than 12 million people opted-in to receive the weekly Martin’s Money Tips email, and more than 15 million unique monthly site users who visit more than 26 million times a month. In September 2012, it joined the MoneySupermarket.com Group PLC.