Banknotes of Scotland are the banknotes of the pound sterling that are issued by three Scottish retail banks and in circulation in Scotland. The issuing of banknotes by retail banks in Scotland is subject to the Banking Act 2009, which repealed all earlier legislation under which banknote issuance was regulated, and the Scottish and Northern Ireland Banknote Regulations 2009.^[1] Currently, three retail banks are allowed to print notes for circulation in Scotland: Bank of Scotland, Royal Bank of Scotland, and Clydesdale Bank.

Scottish banknotes are unusual, first because they are issued by retail banks, not government central banks, and second, because they are not legal tender anywhere in the United Kingdom. Scottish bank notes are not legal tender even in Scotland, where, in law, no banknotes, even those issued by the Bank of England, are defined as legal tender.^[2][3] Formally, they are classified as promissory notes, and the law requires that the issuing banks hold a sum of Bank of England banknotes or gold equivalent to the total value of notes issued.^[4]

The fact that the notes are not defined as legal tender means that they are not withdrawn from circulation in the same way as the Bank of England notes, which cease to be legal tender on a given date. Instead, the Scottish banks withdraw old notes from circulation as they are banked. Any notes still in circulation continue to be honoured by banks,^[5] but retailers may refuse to accept older notes.^[6]

Banknotes

For ease of identification, all three issuing banks in Scotland use the same principal colour for each denomination: Blue for £5, brown for £10, purple for £20, red for £50, and turquoise for £100.^[7] This colour scheme is similar to current Bank of England notes (except that the Bank of England does not issue a £100 note). The size of the notes is also consistent across the three Scottish banks and the Bank of England.

Bank of Scotland notes

All Bank of Scotland notes bear a portrait of Sir Walter Scott on the front in commemoration of his 1826 Malachi Malagrowther campaign for Scottish banks to retain the right to issue their own notes.^[8] The Bank of Scotland's 2007 series of banknotes is known as the Bridges of Scotland series. These notes were introduced on 17 September 2007, and show Scotland's most famous bridges on the reverse side. From 2016, the Bridges of Scotland series is being renewed with the issue of new polymer notes with designs that follow the same basic theme of bridges. The Tercentenary and 2007 series of notes are being withdrawn from circulation and replaced with the polymer series as these are issued, but older notes continue to be accepted at banks. In line with this, the Committee of Scottish Bankers encouraged the public to spend or exchange non-polymer five and ten pound notes before 1 March 2018, and twenty and fifty pound notes before 30 September 2022^[6]

Royal Bank of Scotland notes

From May 2020 the Royal Bank of Scotland adopted a new series of banknotes, made of polymer. The £5 note shows poet Nan Shepherd on the obverse accompanied by a quote from her book The Living Mountain, and the Cairngorms in the background. The reverse displays two mackerel and an excerpt from the Scottish Gaelic poem ‘The Choice’ by Sorley MacLean.^[11] The obverse of the £10 note shows scientist Mary Somerville, with a quote from her work The Connection of the Physical Sciences, and Burntisland beach in the background. The reverse displays two otters and an excerpt from the poem ‘Moorings’ by Norman MacCaig.^[12] The obverse of the £20 note shows entrepreneur Catherine Cranston. The reverse shows two red squirrels and a quote from the Scots-language poem 'Venus and Cupid' by Mark Alexander Boyd.^[13] The obverse of the £50 note, in red to mirror the Bank of England £50 notes, depicts educationalist Flora Stevenson on its obverse and an osprey on the reverse.^[14]

The design process of the notes was touted as a "collaboration with the people of Scotland", with a total of 1,178 Scots being included. Nile HQ,^[15] a Strategic Design Company led the redesign process and De La Rue printed the notes. Each note contributes to an overall theme ‘Fabric of Nature’. Given the national significance of the notes, Nile HQ invited some Scottish designers, photographers and calligraphers to develop the creative concept for the new notes (O Street,^[16] Graven Images,^[17] Timorous Beasties,^[18] Stuco^[19] and Susie Leiper^[20]).

The previous series of Royal Bank of Scotland notes, originally issued in 1987, is in the process of being replaced by a polymer series: the Committee of Scottish Bankers encouraged the public to spend or exchange non-polymer five and ten pound notes before 1 March 2018,^[6] and twenty and fifty pounds before 30 September 2022. On the front of each note is a picture of Lord Ilay (1682–1761), the first governor of the bank, based on a portrait painted in 1744 by the Edinburgh artist Allan Ramsay.^[21] The front of the notes also features an engraving of the bank's former headquarters in St Andrew Square, Edinburgh. The background graphic on both sides of the notes is a radial star design which is based on the ornate ceiling of the banking hall in the old headquarters building.^[22] On the back of the notes are images of Scottish castles, with a different castle for each denomination.

Occasionally the Royal Bank of Scotland issues commemorative banknotes. Examples are the £1 note issued to mark the 150th anniversary of the birth of Alexander Graham Bell in 1997, the £20 note for the 100th birthday of Queen Elizabeth The Queen Mother in 2000, the £5 note honouring veteran golfer Jack Nicklaus in his last competitive Open Championship at St Andrews in 2005, and the £10 note commemorating HM Queen Elizabeth II's Diamond Jubilee in 2012. These notes are much sought after by collectors.

Clydesdale Bank notes

Clydesdale Bank's polymer series came into circulation in March 2015, when the Clydesdale Bank became the first bank in Great Britain to issue polymer banknotes. The £5 commemorative notes, issued to mark the 125th anniversary of the construction of the Forth Bridge, contain several new security features including a reflective graphic printed over a transparent window in the banknote.^[25][26] The public were encouraged to spend or exchange non-polymer five and ten pound notes before 1 March 2018 and twenty and fifty pound notes before 30 September 2022.^[6]

The polymer notes continue the theme of the World Heritage Series of paper banknotes, introduced in autumn 2009. The new notes each depict a different notable Scot on the front and on the reverse bear an illustration of one of Scotland's UNESCO World Heritage Sites.^[27]

Banknotes of the earlier Famous Scots Series portray notable Scottish historical people along with items and locations associated with them.^[28]

The Clydesdale Bank also occasionally issues special-edition banknotes, such as a £10 note celebrating the bank's sponsorship of the Scotland team at the 2006 Commonwealth Games.

Following the announcement of the CYBG's takeover of Virgin Money in 2018 and planned phasing-out of the Clydesdale Bank brand by 2021 in favour of Virgin Money, there was uncertainty as to the future of the Clydesdale Bank's banknotes after 2021. In June 2019, the company confirmed that it would continue to issue notes under the Clydesdale Bank name.^[29] However, they became rarer from 2020 after the bank withdrew from contracts to supply cash machines run by rival lenders, meaning they could no longer be withdrawn from Santander, TSB, Co-op or Asda machines.^[30]