Currency exchange – avoid getting ripped off at the airport
Do not exchange your currency at the airport bureaux de change. This is the expensive way of changing your hard-earned pounds into another currency. If in the rush to go on holiday, you forget to sort out the spending money, at the very least, use an airport ATM for a better rate.
Plan ahead, as treating currency exchange as a priority could get you far more bang for your buck. Scrutiny of exchange rates reveals that 10p in every pound can be lost when buying euros or dollars just because of the lack of preplanning. The average Briton spends £500 on a week’s foreign holiday, which amounts to a lot of money being lost on poor exchange rates, even without paying commission charges.
High street retail outlets like M&S Travel Money or the Post Office offer much better value than any kiosk at the airport, but are more expensive than buying and pre-ordering your money online.
If you want the convenience of picking up your money at the airport, then be sure to pre-order to get a better rate. When we checked, €500 costs £470 at Heathrow Airport and £450 by ordering in advance with Travelex, who, incidentally, also deliver to your door.
TOP TIP: When abroad, always choose to pay in the local currency if you are given the option. If you opt to pay in your home currency, a system called Dynamic Currency Conversion is triggered, and you could end up paying up to 20% more in fees.
How to avoid bureau de change and ATM exchange fees completely
If you plan to travel frequently, you will benefit from using a preloaded card because you get to lock in your rate before you go. This means that you have total control of your spending with no surprise charges.
Wise
This is a good system for digital nomads and frequent travellers. As well as supporting multiple currencies and allowing users to open foreign bank accounts, receive payments globally, and convert money at mid-market rates, they also issue debit cards for spending abroad. You can preload the card and avoid currency fluctuations.
Revolut
Revolut is probably the simplest method to hold, send, and spend in over 25 currencies using real exchange rates. Using a single app, you can manage all your travel expenses and withdraw from ATMs worldwide with minimal fees.
Travel Credit Cards
Consider using a travel credit card when travelling, such as Lloyds Ultra, Barclaycard Rewards and Virgin Money travel card, which also offer cashback on spending.
Travel credit cards could be cheaper than using other types of cards when you’re away, as they typically don’t charge you fees. For example, though the exchange rate is favourable, you will then be charged an extra 3%-ish ‘non-sterling exchange fee’. This means every £100 worth of euros or dollars costs you £103, and some add even more fees on top.
TOP TIP: You will need a credit card to pay for car hire as they don’t accept debit cards or cash. You’ll usually be paying (or leaving the deposit) in the foreign currency, which can be a substantial amount of money.
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