If you’re one of the many people who toss spare coins into a jar, first, well done. It’s a simple, almost old-fashioned habit that works.
Over time, the little amounts add up, and before you know it, you’ve got a tidy sum.
But once that jar is full, what’s the smartest thing to do? Should you bag it up and bank it, spend it, or turn it into something bigger?
Here are the best ways to put your spare change to good use in 2025.
1. Bag it and bank it
The most traditional option is to bag up your coins and deposit them in your bank account.
- Banks provide free money bags (different denominations have set bag amounts: £1 for coppers, £5 for 5ps/10ps, £10 for 20ps/50ps, £20 for £1s/£2s).
- Once full, you can deposit them directly into your account.
- Choose a quiet branch time to avoid long queues.
This is often the most sensible option if you want your money to start earning interest quickly.
2. Use a coin machine
Supermarkets often have coin-counting machines that will sort and count your coins in seconds, giving you a voucher for cash or groceries.
The downside? They usually charge up to 10% commission, so you lose a slice of your savings for the convenience.
3. Spend it wisely
Shops (especially independents) often welcome change, but don’t overwhelm them with bags of copper. There are limits to what counts as legal tender:
- 1p and 2p coins: up to 20p
- 5p and 10p coins: up to £5
- 20p and 50p coins: up to £10
- £1 and £2 coins: no restrictions
Use small piles of coins for everyday top-ups like bread and milk. It’s practical, helps keep your budget steady, and means your coins don’t gather dust.
4. Give it to charity
Charity boxes at tills or donation points are perfect for loose change. Alternatively, you can bag it up and donate it at a charity shop.
Just be thoughtful. Turning up with huge bags of copper can be more of a burden than a gift!
5. Turn change into fun
Not every penny needs to go into savings. Sometimes, using spare change for a fun family activity, like the arcades, can be valuable in its own way.
Spending your jar of coins on a low-cost day out can create memories as well as clear the jar.
6. Boost your savings with a high-interest account
Instead of leaving coins idle, deposit them into a high-interest savings account. In September 2025, easy-access savings accounts are offering up to 4.75% AER, and some regular saver accounts go as high as 7.5% if you commit monthly.
Even a modest jar of £50–£100 could grow if you make a habit of topping up savings this way.
If you can find a bank branch to deposit the money that is!
See also: Money management tips for beginners: A realistic guide
7. Use a Cash ISA for tax-free growth
If your spare change jars build into larger amounts, put it into a Cash ISA. You can save up to £20,000 a year tax-free, with rates around 4.4% AER.
It’s one of the best ways to make small savings work harder.
Final thoughts
Spare change may not feel like much, and may feel old fashioned when we use cards for everything, but it can go a long way if used wisely.
Whether you bank it, save it, invest it, or even enjoy it, every coin has value. Turning jars of pennies into pounds, and then into interest, investments, or debt repayments, is a simple but powerful money habit.
Spare change FAQs
What’s the most cost-effective way to use spare change?
Bagging it up and banking it is free and helps you earn interest. Coin machines are convenient but charge up to 10%.
Can I still pay in coins at the Post Office?
Yes, many Post Office branches let you deposit coins directly into your bank account, especially if your bank no longer has local branches.
Are round-up apps safe to use?
Yes, if they’re regulated by the FCA. Apps like Moneybox and Plum are popular, but remember that investments can go down as well as up.
Is it better to save or spend spare change?
If you have high-interest debt, paying that off is best. Otherwise, putting it into savings or a Cash ISA is a smart move. Small change can also be a fun treat if your budget allows.
How much can I save in a year with a change jar?
It depends how much you use cash, but many people find £100–£300 in a full jar. If you deposit that into a 4.5% savings account each year, it can grow steadily over time.
