How does Scottish money work?

Answer 1

Scottish banknotes are largely similar in size to English money, and independent coins are not issued by the three money-issuing retail banks of Scotland. They are the Bank of Scotland [now part of LLoyds Group], the Royal Bank of Scotland [now with the UK government as a majority stakeholder] and the Clydesdale Bank. Interestingly, they are not legal tender in any part of the UK, and as such are not accepted in many areas of England. Pictures can be seen in the related links section. Clydesdale bank are due to release a new series of notes later in 2009. Same coinage as the rest of the UK. Scottish banks issue their own banknotes.

Answer 2

The same way as 'English' money. Other than looking different, it's worth exactly the same as British pounds sterling, because it is British pounds sterling. Whereas 'English' money is issued by the Bank of England, Scottish money is issued by the Bank of Scotland, the Royal Bank of Scotland, and the Clydesdale Bank. Only RBS prints pound notes, but doesn't print £50s. All three print £5, £10, £20 and £100 notes. The coins however are issued solely by the Royal Mint, thus are the same throughout the UK.

Despite being exactly the same currency but from a different source, it is not uncommon to find shops and businesses in the rest of the UK unwilling to accept it. This may be because Scottish banknotes are NOT legal tender in England and Wales - HOWEVER, 'Legal tender' DOES NOT in itself mean the money is worthless. If I want to sell something for £5, I would be more than happy - overjoyed in fact - to accept 100 US dollars instead.

In essence, if something is outside legal tender as in the case of Scottish notes in England, it is a matter for agreement between the parties involved. In the shop I work in in London, we accept Scottish notes as payment because our bank accepts it when we cash up at the end of the day; £10 is £10 whether it's from the Bank of England, or issued by one of the three Scottish banks.