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Get a good deal on holiday money
By Emma-Lou Montgomery
Leaving it until the last minute is the easiest way to pay top dollar for your holiday money
Bureaux de Change at airports, ferry and Eurostar terminals will charge you the most for your money. So it makes sense to plan ahead and shop around a little before you set off on your holiday.
Beware the 'commission-free' trap
Commission-free currency may sound like a good deal, but it can be the most expensive way to buy your holiday cash. Buying and selling money is big business and to protect its bottom line a bureau could simply be making a profit by offering a less competitive exchange rate. For example, at a rate of 1.38 to the pound, you'll get €550 for just under £400. But find a bureau offering 1.39 to the pound and you'll have €10 'extra' to spend while in sunnier climes.
Keep an eye on the rate
To find the best deal you need to look for two things - the exchange rate on offer (which tells you how many euros you get for your pound) and the commission charged (which can be a flat fee or based on a sliding scale). According to NatWest Travel Money Services, 53% of us do not bother checking the rate of exchange elsewhere before buying our holiday money.
Be ready to pounce when you spot a good deal
Remember that the exchange rate changes daily and the one you see published in the papers is not the one a bureau will use.
Borrow cash on your credit card with caution
While they're a convenient way to pay when you're abroad and offer a safety net if you run out of money, most cards charge a 2% fee on overseas withdrawals, plus 'foreign usage loading' of between 1% and 2.75% of the amount you withdraw. And because credit-card providers term this withdrawal as a cash advance, you'll often find you pay a higher rate (just as you would if you withdrew cash at home on your credit card).
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