Save on travel money
If you’re organised enough to get foreign currency sorted out before you leave, there are ways to save a substantial amount, says Sarah Moore.
Many holidaymakers get their travel money from a frenzied dash to the foreign-exchange bureaux at Heathrow on the way to their flights. But these shops are very expensive as one look at the spread between the buy and sell price will tell you. If you're organised enough to get foreign currency sorted out before you leave, there are ways to save a substantial amount.
First, ignore your bank and the post office. They rarely offer good rates. You're better ordering from a specialist foreign exchange bureau (either for delivery or collection). A comparison site can help you find the cheapest providers: one useful tool is MoneySavingExpert's TravelMoneyMax.
For those who prefer to pay by card, look for travel-friendly credit or debit cards that don't impose transaction and withdrawal charges, and which don't add commission to the exchange rate (the Halifax Clarity credit card is one good option on this front although remember that as a credit card, it will charge interest on cash withdrawals). If you don't want a new bank card, you could consider a pre-paid currency card. But watch out for the ones that charge inactivity fees and compare the exchange rates on offer.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Lastly, make sure you understand what you're paying. "Commission-free" doesn't guarantee a good deal the provider's mark-up will still be included in the rate they quote you. Check the exchange rate they quote you against the wholesale rate (available through a site such as XE.com). A difference of 1% is a good deal, while 5% (a staggeringly high charge, yet typical of a bank) is not.
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
Sarah is MoneyWeek's investment editor. She graduated from the University of Southampton with a BA in English and History, before going on to complete a graduate diploma in law at the College of Law in Guildford. She joined MoneyWeek in 2014 and writes on funds, personal finance, pensions and property.
-
Bitcoin price one of the most-asked questions on Alexa - here's how to buy the cryptocurrency
According to figures from Amazon, which cover September 2023 to November 2024, pop star Taylor Swift and Bitcoin were named among the most popular Alexa queries of 2024
By Chris Newlands Published
-
Investing for children this Christmas – five ideas
It might not come with a shiny ribbon, but an investment fund could be the gift that keeps on giving. We share five ideas if you are investing for children this Christmas.
By Katie Williams Published