Travel money may be the last thing on your mind when preparing for a much-needed holiday – there are other things like booking flights or finding the right travel insurance to keep you busy.
However, leaving it too late to swap your cash could mean you get stung by high bank or debit card fees.
We look at how to secure better exchange rates and get the best deals on travel money.
How to find the best travel money rates
- Don’t exchange currency in the airport
The general rule when it comes to travel money is to avoid airport exchanges.
Airport bureaux de change have a captive audience, as once you’re in the airport, there isn’t much choice about where you get your cash. You will typically get poorer exchange rates at the airport, so sorting out your travel money and currency exchange before you reach the airport can therefore make your money go further.
- Use the right travel money cards
It’s a good idea to use travel cards when heading abroad, as they can help you lock in competitive exchange rates and manage your money better on holiday.
Alastair Douglas, CEO of TotallyMoney, says: “Don’t get burnt by bank charges this summer and take a fee-free card with you. Otherwise, if you pack the wrong one, you could find yourself paying £8.15 for £5 of cash when abroad.”
Check the small print, though, as while most of these cards can be used in European or American destinations, it’s unlikely you’ll be able to use them in more far-flung places.
Another option for travel money is to use a prepaid travel card or a currency card that links with your current account from providers such as Currensea, FairFX, and Revolut. The Post Office also launched a Travel Money Card that carries up to 22 currencies.
- Supermarket loyalty programmes
Most savvy shoppers are familiar with supermarket loyalty schemes that give you discounts on your grocery shopping. But registered customers could also get lower exchange rates on travel money.
For example, Sainsbury’s customers can get a euro exchange rate of €1.1322 for £1, which goes up to €1.1345 if you’re a Nectar member.
Tesco Clubcard members can also get special rates of €1.1344, which falls slightly to €1.1321 if you’re not a member.
This won’t make much difference if you’re taking out smaller amounts, but the savings start to add up the more you withdraw and could give you some extra spending money.
- Shop around
Comparison websites such as Go.Compare and Travel Money Max make it easy to search and find the best deals in a couple of steps.
A lot will depend on what is available near you and if you want the convenience of being able to get your holiday cash with your frozen chips.
- Find the best travel money providers
When converting pounds to other currencies, you can either go to your high street bank or order travel money online.
Source: MSN (Story by Marc Shoffman)