Pound or Euro in London

UK uses pounds, most of the rest of the EU uses euros for currency. Here's a list of Eurozone members: http://tinyurl.com/5tlrttj Break down on bills and coins here: http://tinyurl.com/ycdpojc

The UK uses pounds. Both sterling and euros have about the same denominations as the US, but bills stop at five - - ones and twos are coins and there's no quarters (but both have twenty-centers). Bringing money with you isn't such a red-hot idea - - except maybe if you're using Heathrow since I don't think it has bank ATMs anymore (still you won't get screwed too badly if you snag just a little bit at a travelex booth/machine).

£50 notes are in the process of changing - I would advise not to deal in those. The old ones have not yet been withdrawn but it could happen any time. The £20, £10, and £5 notes recently went through a similar change, if you bring from the US, especially if you get them from a friend who held them from a trip some time ago they may not be any good. It is very rare for £50 or £100 notes to be used in general commerce. Better, in my opinion, is to use an ATM when you arrive. Oooooodles of discussion every month on this helpline - scroll around for the discussions. €50 bills are commonly used in Europe, and €100 ones are used for large purchases. Anything larger generally are not welcomed, many signs say so. There had been quite a lot of counterfeiting of the larger Euro notes.

The £20, £10, and £5 notes recently went through a similar change, if you bring from the US, especially if you get them from a friend who held them from a trip some time ago they may not be any good. I think that needs a little clarification....it's not that they're no good, you just can't use them anywhere. You can, however, change them in for newer notes. If a local bank won't do it, you'll have to go to the Bank of England. I have notes I recently found that are over 20 years old. I checked with the Bank of England and they said no problem, they can be exchanged.

A very, very small number of big central London stores, and some of the shops at St Pancras station, will accept Euros, but generally at inflated prices.

@Ed would love to know why you think Heathrow terminals no longer have ATM's. http://www.heathrow-airport-guide.co.uk/cash-facilities.html

Yes, Claudia, there are ATMs at Heathrow, but as Ed said, they are not bank-associated ATMs, they are Travelex ATMs, which charge fees.

What Ed is referring to is a disturbing trend by some airports to allow Travelex to have an ATM monopoly in some terminals. If you want to withdraw cash you're forced to accept their lousy exchange rates and other fees. Terminal 1 at Toronto Airport also has this arrangement:(

Why I think something is because I post from what I see and that's what I saw a few weeks back. I don't post based on http:whattheheck.

thank you all for the input and all the help in planning.. 5 days until the big day and 7 until we leave for Europe! Cheers! Thanks RC

As someone who waits to get their local currency until I land at the airport, I am very grateful to Ed and company for alerting me to the fact that some airports now only have "private" ATMs (i.e.: Travelex). I will pay much more attention when I arrive next summer than I have been paying. Thanks again folks.

I would like to add some information regarding the ATMs at Heathrow. It is true that they are operated by Travelex, and that you may encounter fees, but these can be avoided. When you use the machine, you are prompted to either proceed with the transaction in Pounds or Dollars, or it may be worded Pounds or "Home Currency". It will also usually give you a total for what the transaction will yield in your Home Currency. The best choice is to proceed in Pounds, that allows your bank (Visa probably really) to convert from Pounds to Dollars, leaving you with a transaction that is typically no worse than a Bank ATM. If you choose to do the Transaction in your home currency, you will pay per Travelex's exchange rate, plus maybe a fee from your bank if that applies. This is the same concept a Dynamic Currency Conversion offered when using a Credit Card, but always do the transaction in local currency. I have encountered this same transaction in Spain, even from Bank ATMs, and I suspect it may become more common. Since your card tags you as using Dollars, locals will not encounter this.

Ed, if I'm ever in Pensacola, I've got to meet you. You crack me up!

I have yet to see a TravelEx ATM that dispenses local currency at or near the interbank rate which is the rate used by bank ATMs. TravelEx uses their own exchange rate which includes a markup of the exchange rate. I would avoid a TravelEx terminal at all costs.

The key words are "you will pay per Travelex's exchange rate". That's exactly the problem. Travelex's exchange rate is not the same, or even nearly the same, as a bank ATM's rate.

OK, if the ATMs at Heathrow are not a good option, what is? You may get a better deal at bank ATMs in London, Oxford, Bath, etc., but I would not want to leave the airport without any local currency. Would the best strategy be to get just enough British currency at a Travelex ATM at the airport to last me until I can reach the city and get a larger amount there? Or would it be better to purchase Pounds before leaving the States?

The Heathrow Express accepts credit cards, so you could charge your trip to Paddington, and use the better selection of ATMs there for your pounds. Same deal at the Tube station: charge your fare to the city center and use the ATMs at the nearest bank.

Either of your last two options would work. I don't like to rely on an ATM at Heathrow. Jetlag, disorientation, and not knowing who sponsors those ATMs would make me inclined to get some pounds at home before leaving. You will be ok with 20-50 pounds per person when you land. ATMs abound in London. Check with your bank or credit union about which ATMs give the best deals.