New ATMs launched to boost circulation of £5 note

| June 28, 2010 | 0 Comments

In a bid to boost circulation of the £5 note, ATMs which only dispense fivers have been installed across Britain, following a two-year trial in London.

Almost two dozen machines, run by the ATM operator Bank Machine, have been installed in various locations, including Manchester, Stroud, Oxford, Cardiff and Portsmouth.

The 21 new £5-only machines will be housed in Martin McColl newsagents.

The launch comes after the Bank of England has previously said it will encourage shops to give out more £5 notes in change to meet demand.

Fivers change hands quickly and, as a result, only last around a year before becoming too damaged to use. In comparison, the £50 note is usually in circulation for five years or more.

Last year, banking giant HSBC commenced a pilot scheme in conjunction with the Bank of England. It agreed to stock more £5 notes in 100 of its ATMs across the Midlands and South West England.

Bank of England’s chief cashier Andrew Bailey, whose signature is printed on every Bank of England note, has previously said: “We are very keen to get £5 notes into circulation”.

The ability to withdraw £5 notes will help people to budget - particularly as household finances continue to be squeezed, according to many.

However, the downside of stocking machines with £5 notes means ATMs need to be stocked more frequently, which raises security issues.

Meanwhile, the new ATMs also come as the Bank of England prepares to declare that its old £20 note, featuring English composer Sir Edward Elgar, will be withdrawn this week.

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