One nice thing about visiting London, however, is that while the accommodations and restaurants may cost more, entertainments such as museums and attractions are often free of charge.

Although the UK is part of the European Union, it does not use the Euro as currency.

The British use pounds sterling as their form of currency, and 100 pence makes up one pound. Be aware that pence are also informally called “pee” by the locals.

Paper money or notes come in the following denominations: £5, £10, £20 and £50. The coins come in denominations of 1p, 2p, 5p, 10p, 20p, 50p, £1 and £2.

You can exchange cash and travellers cheques at banks, post offices, hotels, and bureaux de change offices. Better rates may be found at banks, but beware of their commissions, they can be higher than 2 percent of your transaction.

Post offices do not always offer the best rates, but they do not charge any commission, either.

Exchanging money is a bit old school these days when there is the usually less expensive and more convenient option to simply withdraw currency from one of the many cash machines that dot the London cityscape. These cash machines accept cards from anyone who is on the Visa, MasterCard, Maestro, or Cirrus network, which means virtually everyone with a cash card.

Be aware that if you are using a cash machine not located in or outside a bank, you are likely to be charged a convenience fee for its use; this is usually anywhere from £1.50 to £2 per transaction. Another thing to remember is that your own bank will almost certainly charge you for the transactions to make in London, so check with them before departing and plan your withdrawals accordingly.

Finding money in London is an essential part of all vacations.

Photo courtesy: a.drian

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