by Web Business Solutions Ltd
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Holiday Travel Money
Where should I get my holiday travel money?
These days there a more options than ever about where and how to get our foreign currencies:
which location in the UK, at the airport, or in resort?
Should I use bureaux de change, bank, hotel or ATM?
Many holidaymaker’s still think nothing of wandering around with their wallet or money belt stuffed with large amounts of currency, despite the obvious security risk. It is unwise to put all your eggs in one basket in this way. Travel insurance policies may well cover you for a limited amount of money lost, but you will probably have to wait until you return home to be reimbursed.
Where to change money?
On the high street, a recent Which? report found the best rates were offered at Chequepoint (£400 for €500) and Thomas Cook (£404.86). Old favourites like Marks & Spencer and the Post Office (£419.36) fared less well. However rates change daily so information is instantly out of date.
The best online rates were offered by Travelex and Saga (both £404.47). Travelex allows you to collect your currency without charge at their airport branches – just make sure you leave yourself time to do so - while Saga runs a home delivery service. Travelex also offers an online price promise that their rates will not beat. Combined with the airport pickup can make it a good bet.
Other links
The FCO Offers some excellent advice for travellers and is worth visiting if you are going anywhere exotic.
Other links discussing travel money advice: Moneysavingexpert.com and ThisIsMoney.
|
Where |
Pros |
Cons |
|
Airport |
It is potentially convenient |
First, under no circumstances wait until the airport: you will get a poor deal |
|
UK Bureau de Change |
Some high street bureaux offer good rates. Post office and M&S are often competitive.
|
Second, most providers now charge no commission, so reject any that does: the best now compete on exchange rate. But beware that you get a good rate it is not automatically better. Be careful how you pay. If you pay by credit card there will be charges as if withdrawing cash. It is generally inadvisable to use credit cards to withdraw cash, whether at home or abroad, except in urgent circumstances. If you pay by debit card some banks may charge you (quite a lot). |
|
Online Bureau de Change |
You can shop around to get the best deal, including many high street bureaux. You can get a better deal from agencies like Travelex and then pick up at the airport. They offer 0% commission and a best price online guaranteed |
You will almost certainly have to pay by card so beware the sting in the tail.
|
|
Hotel |
Convenient if everything else is shut. Consider using an ATM |
Will not be the best deal as they have to almost certainly have to change it themselves. |
|
Resort Bureau de Change |
Probably reasonably competitive - but more difficult to know. |
You cant shop around as easily - better change more cash up front |
|
ATM |
Problems with transparency and comparison. If you leave it to your bank you are at mercy of their exchange rates.
|
Again you own bank / card provider will probably hammer you with charges and make more on the exchange rate too. (Nationwide is an exception). |
Making Purchases abroad
As for using debit cards to make purchases or pay for meals abroad: this is sometimes worse value than making a large cash withdrawal. If you want to pay by card, you are better off with a credit card, as long as it's the right one.
The days when you could use your credit card as you would at home without swinging charges and uncompetitive exchange rates are gone: unless you have the right cards. Credit card company charges are typically 2.75% of the value of the transaction when used abroad.
If they offer to let me pay in pounds, is it worth it?
No. This is called dynamic currency exchange, and should be avoided. Often the rate you get will be appalling and someone’s making big money out of it. If you’ve got one of the specialist overseas cards you’ll get a much better rate paying in the foreign currency not pounds. And even if you’re using a normal card as you’ve no idea of the relative exchange rates they could be playing you for a fool; so it's always best to stick with paying in the foreign currency.
Should I use the the local ATM to do the Exchange?
If you're travelling to Spain, be especially careful. Many Spanish banks, have started to ask UK cardholders if you want to have your money converted into Sterling when withdrawing Euros from ATMs. The rate you'll get is often much worse than the rate you’d be given by your own plastic provider when it converts Euro withdrawals, although the exact rates depend on which card provider you’re with. For Abbey account holders this can work because they get no charges on these transactions. If Abbey does the exchange they will charge £1.50 minimum and 2.75%. This goes for most other card providers, but I’ve not had it confirmed they don’t charge again!
Should I buy traveller’s cheques?
Traveller’s cheques have been largely superceded in most instances because of the additional hassle of changing them for money along with commission charges and loaded exchange rates. However if you don’t have a credit card then they are infinitely more secure than carrying wads of cash.
However they can still be useful as a line of emergency funding in remote parts of the world. Replacing Traveller’s cheques can often be achieved in less than 24 hours provided you have kept records of the cheque numbers and the receipt, whereas replacing credit cards can take up to a week. Additionally dollar denominated cheques are more widely accepted in the US where they can be redeemed directly for goods and services, making them quiet convenient.
- Do keep the receipt separate and secure
- Do keep a record of serial numbers and update it as you use them.
More Consumer Information
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