LSD {Banking}
Libra, solidus, denarius
LSD (Finance)
LSD (£sd) - pounds, shillings and pence - is an abbreviation of the Latin words libra, solidus and denarius. In simple terms...

Libra, a pound weight in Latin,
s. is an abbreviation for shilling in English,
d. stands for denarius or denarii (a Roman coin).

Image: Balance scales.
EXIT | Finance | Decimalisation BACS | The Clearing Banks | Post Office Savings Bank | Regulation | VAT |


LSD - Pounds, Shillings and Pence, the currency of Great Britain in days gone by. LSD Banking will study some aspects of the history of UK currency, the banks and related topics...

LSD was the abbreviation for £:s:d, pounds, shillings and pence; otherwise known as 'old money': the pre-decimal coinage of the UK until 1971.

Leaflet: Your guide to decimal money.

The Bankers Automated Clearing Service (BACS) was formed in 1971, mainly to provide a central clearing function for bulk automated payments. Here we learn about BACS and its associated companies and processes...
Contactless Payment Cards

Contactless payment cards were first popularised in the media by Barclays. It seems ages ago; it was (2009) when the memorable 'water chute ad' of the man jumping onto the slide and eventually passing through the supermarket where he grabs a bunch of bananas and at the same time waves his payment card at the reader to pay for the goods, while still in motion on the water chute!

The first contactless cards in the UK are attributed to being issued by Barclaycard in September 2007.

Growth of the system was dependent upon shops/supermarkets implementing the necessary card readers and on the banks for issuing new credit/debit cards.

During the Covid 19 pandemic the card limit was increased (01/04/2020) from £30 to £45 to encourage more contactless (touch-free) transactions.

On 15 October 2021 the card limit was again increased to allow up to £100 contactless spending, in a single transaction, albeit with the likelihood of more frequent chip and pin checks.

£10 1 September 2007 – 28 February 2010
£15 1 March 2010 – 31 May 2012
£20 1 June 2012 – 31 August 2015
£30 1 September 2015 – 31 March 2020
£45 1 April 2020 - 14 October 2021
£100 15 October 2021 onwards

The Clearing Banks
The Clearing Banks
Here we take a look at the 'Big Four' high street banks:

Barclays, Lloyds, Midland and the newly merged (in 1970) National Westminster (Nat West).

[Notes: 'first direct' and HSBC are both trading names of HSBC Bank plc.]

Photo: High Street bank © {site offline}
Post Office Savings Bank
Post Office Savings Bank
Another long established bank which was commonplace in the high street... In 1861 the Palmerston Government set up the "Post Office Savings Bank" - a simple savings scheme aiming to encourage ordinary wage earners "to provide for themselves against adversity and ill health".

Leaflet: Post Office Savings Bank - Saving and Spending.


GOV UK Bank Regulation

Financial Services Authority
The Financial Services Authority (FSA) was an independent non-governmental body, given statutory powers by the Financial Services and Markets Act 2000. The FSA used a wide range of rule-making, investigatory and enforcement powers to fulfil its statutory objectives.

From 1st April 2013, the Financial Services Authority (FSA) was replaced by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA).

The deposit compensation limit rose from £50,000 to £85,000 for each person, per authorised firm, from 31 December 2010. This  offers consumers greater protection and brings the savings guarantee in the UK into line with much of Europe.

History: From 1 January 2016 the deposit limit for bank accounts was reduced to £75,000. This was the sterling equivalent of €100,000 as required by the recast Deposit Guarantee Schemes Directive. From 30 January 2017, the limit increased back to £85.000.

Financial Services Compensation Scheme
The Financial Services Compensation Scheme (FSCS) is the UK's statutory fund of last resort for customers of authorised financial services firms. FSCS can pay compensation if a firm is unable, or likely to be unable, to pay claims against it. FSCS is an independent body, set up under the Financial Services and Markets Act 2000 (FSMA).

Value Added Tax was introduced into the UK on 1st April 1973 as a requirement for joining the European Economic Community (EEC) or 'Common Market'. It replaced 'Purchase Tax' which had been a levy on 'luxury goods' since October 1940.

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