A group of year seven pupils have learnt that honesty pays after they found £100 in a Sidmouth cash machine – and handed it straight in to the bank.

Colyton Grammar School students Louis Stamp, Tom Simmons and Danny Krasucki were walking past the Sidmouth branch of Lloyds on March 18 when they heard the machine beeping.

The cash was sticking out of the dispensing slot, but instead of pocketing it, the three friends went straight inside the bank to hand it in – enabling staff to return it.

As thanks for their honesty, the boys were awarded a box of chocolates each from the bank and a mystery reward from the rightful owner – a Sidmouth man who wishes to remain anonymous.

Tom’s mother Michelle said that the boys became friends after starting at Colyton in September last year, and decided to spend the day enjoying the sun in Sidmouth when they walked past the cashpoint.

“They heard it beeping and saw the money there,” added Michelle. “They didn’t discuss it, they just took it straight in to the bank. Afterwards Tom was saying he didn’t think what they’d done was a big deal, but I’m really proud of them. It’s such a good thing for them to have done.”

Grace Robinson, customer service assistant at the High Street branch, explained that cashpoints will draw the money back in to the machine if it is not collected after 30 seconds.

She added: “Obviously your card is returned before the cash is dispensed, so if people are in a rush sometimes they take their card and just forget to take the money afterwards.

“[The man] is really thankful and so impressed with them for returning the money. Anyone could have come by and taken it, but luckily it was these boys who were walking past.”