The £5 note that could be worth £1,000

Bank of Scotland has unveiled its first polymer banknote, a limited edition fiver, which will be going under the hammer to raise money for BBC Children in Need. The bank says it is expected to fetch "hundreds of pounds", and experts have estimated that it could go for as much as £1,000.

Collectible

We have already seen significant demand for new polymer notes from collectors. Back in April, when the Clydesdale Bank issued two million £5 polymer notes, they were being sold for as much as £100 on eBay to collectors who couldn't get to Scotland to pick theirs up.

This particular note will fetch far more, because it has been designed to make as much at auction as possible. The banknote is one of a limited edition of just 50, and was designed by Kayla Robson, a 13 year old school pupil from Dundee.

The serial numbers on the note will also be unique with the first 40 notes using the serial code PUDSEY01 – PUDSEY40. The remaining 10 banknotes will be available for personalised serial numbers such as initials and date of birth.

The personalisation and rarity of the notes is expected to make them even more collectible. The fact that the Bank of Scotland hasn't refreshed its design since 2007 makes the first note of a new design even more unusual. After the one-off charity auction, most of the rest of the notes will be auctioned by Spinks auction house to collectors.

Banknotes are considered collectible, and although there are fewer note collectors than coin fans, rare collectibles will always attract buyers. Last year, for example, a rare £1 million banknote went up for sale at auction. Despite the fact it was stamped as 'cancelled' and had no face value, the fact that only three of the notes had ever been auctioned meant that it was on sale for £10,000.

The design of the usual polymer Bank of Scotland £5 note will be revealed early next year, and they will go into circulation later in 2016. The polymer £10 will follow a year later. The notes are expected to last 2.5 times longer than paper banknotes, and will take longer to get tatty - improving the quality of notes in circulation.

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