What are the recommendations as far as taking hard currency to Scotland and/or England? Does either country easily exchange dollars for the local currency?
Use an ATM. You can exchange at many banks and, I’m cities, currency exchange booths, bait the rates aren’t great and I don’t like carrying a vacation’s worth of cash on my person
Robert
I’ve never tried to exchange dollars for sterling, but there will be some controls in place to make it harder for money-laundering. I doubt they are punitive, and may be as simple as providing ID that they can record against the transaction (e.g. passport number). Worth checking with someone like Thomas Cook / HSBC / Nat West etc.
Definitely worth shopping around, and I’d generally avoid bureau de change in obvious locations, plus sadly also the post office, which should have great rates, but seem intent to be the worst by a distance, then offer ‘special rates’ that are still worse than elsewhere!
Department stores such as Marks and Spencer & Debenhams are also worth checking out when comparing rates, as they typically have a foreign currency section now, and can be pretty competitive.
Finally, some English shops can get a bit sniffy about Scottish notes. They are absolutely legal tender in England, but as they are rarely seen, the staff can get a bit nervous. The reverse doesn’t appear to happen.
regards
Ian
For virtually all your purchases, you’ll get the best exchange rate if you use a credit card that does not charge foreign transaction fees (can google this and find the ones that do not). This can get your FX conversion cost down to around 1%. Using your ATM card, you can take out Pounds (or other foreign money) at about a 3 or 4% transaction cost. Finally, if you take your money to a FX exchange booth, you’ll wind up paying 5% to 10% depending on the size of the transaction.
Credit cards with no foreign transaction fee are by far your best bet.
Cash exchange is always the worst option. As others mentioned, use a no forex fee credit card when you can. Check with your bank whether they charge a fee for foreign ATM withdrawals. If they do, open a small account with a credit union that caters to American service and diplomatic personnel, like Andrews Federal CU or United Nations CU, both of which you can join if you are or become a member of an eligible organization. And never choose the option to be charged in USD when traveling abroad.
BTW, England and Scotland both use the pound, which is hard currency 
As others have said, use your ATM to withdraw pounds at the airport, and CC to make purchases. It’s not a terrible idea to have a couple hundred dollars in reserve, just in case you have a problem with your ATM card.
I was just in the UK last fall and regularly used ATMs to get local currency without any problems. Just be sure to call your bank to let them know you’ll be there before you leave. I think mine tacked 2-3% onto each transaction but that’s the same as many out-of-network ATM fees in the states. We got some pound notes in Northern Ireland which got a second glance in London but they took them without any questions. Enjoy your trip!
Definitely use if you have, your community bank ATM (especially USAA FSB) or your credit union ATM card if you have (especially Pentagon Employees, or Boeing Employees) and you’ll get a 0-2% exchange fee at the ATM which isn’t bad. I always take out a far larger amount of sterling than I would use in any one trip (or three trips, for that matter) I travel there often, and because the price of the pound, has fluctuated from $2.07/pound in 2006-2007 to $1.25-30/pound in 2008-9. Now it’s back up to $1.70 and if you travel there yearly, like I do, dollar cost averaging with quid is the way to go. Additionally, USAA, has a chip and pin system on their new credit cards, and only charges 1% foreign transaction fee. My Capital One Venture card has 0% transaction fees. Finally, in the very near future, my Delta American Express Platinum will no longer charge foreign transaction fees (they were one of the worst prior at 3.5-4%).
Just be careful for some sleazy shops in london, and ESPECIALLY on the Royal Mile in Edinburgh who go ahead and charge your card, without asking (and which is illegal, i might add) for your purchase in US dollars instead of pounds sterling. By law, you must be given the choice! If you just sign the receipt without checking , and if they slyly charged you in greenbacks instead of pounds, you’ll get an exchange rate so horrible, that even Travelex would fee pity on your poor soul, and meanwhile, that sleazy piece of shale merchant will get a nice little windfall. Multiply the slight irritation of a few informed customers and 99 other ignorant tourists whom you pull this scam on, and you can make more money pulling off this racket than you can sell swill. Cheers 
James
My 2 pence.
Also, if you are lucky…my ATM card, through a brokerage house, charges no fees worldwide. Any fee charged will be rebated to you monthly.
Cheers!
Marshall
Same with my Citi ATM card, although it may be because I’m so special
Then I must be special too as I just used my Citi ATM card all over Europe
I did tell Citi I knew you so that could be it also. ![[snort.gif]](/uploads/db3686/original/2X/b/bdc3944606213c4dca6c1169cf0a166c8bc4f8c9.gif "snort.gif"){kind=small}
George
+1. We’ve even had trouble using Scottish notes to buy tickets for the Tube.
As others have said, the way to go is fee free credit cards (now offered regularly with airline and hotel affinity cards) and no or low fee ATM cards for cash.