Posted on Monday, 29 January 2018

Changing money is an unavoidable part of going on holiday. Even if you managed to ‘go cashless' by only using your debit or credit cards (all but impossible in some destinations), your provider will still charge you fees. It can seem unfair that banks and exchange bureaus take such a sizeable cut of your spending money. But there are a host of ways to keep your travel money costs down.

Watch the exchange rate

Like so many aspects of booking a holiday, it's a good idea to sort out your spending money well in advance. However, you should have a feel for your destination currency's value, so if GBP suddenly goes up in value against it, you'll be ready to buy.

Change larger sums

You'll get better rates if you exchange larger sums. So if you're travelling in a group, consider pooling everyone's cash before you carry out the exchange. Rates are especially good when the figure goes above £500. You can order in person from an exchange office, or you can order online for delivery or pick-up. Indeed, buying online may present the best deal. Do a quick search for the most attractive offers.

Shop around with comparison tools

There are a number of popular exchange rate comparison tools available to help you find the best rates. But avoid rushing into a purchase; take your time and ensure you get the best deal.

Don't exchange at the airport

If you wait until you arrive at your departure or arrival airport, you will almost certainly get a bad deal on your currency exchange. Those who don't exchange beforehand may be compelled to take the airport bureaus' poor rates.

Use cards wisely

Of course, you might just decide to arrive at the airport and withdraw cash from the nearest ATM. But be aware that your UK debit card may be costly to use overseas. Credit cards can also attract high fees. You may well save large sums if you shop around for a credit card designed for use abroad. Many pre-pay credit Mastercard and Visa cards, for example, offer low fees and commission.

Overseas ATM fees

In some countries, banks that own ATMs charge an additional fee to overseas users. You may find that some banks charge less than others, so it's worth being aware of the cheaper ones. Some may not charge a fee.

Don't use the ATM's exchange rate

Overseas ATMs often give you the choice of using the bank's exchange rate - or not. This rate is usually very poor indeed, so avoid using it.

Consider taking out UK cash before you fly

The cheapest approach may be withdrawing pounds from an ATM in the UK, then hunting around for the best exchange rate once you reach your destination. However, you may need a small amount of local currency to pay for taxis, buses or trains from the airport (a hotel pick up may eliminate this issue).

Haggle

Just as you might negotiate a better deal on souvenirs while abroad, in some situations you might be able to get a better rate simply by asking. This approach is more likely to succeed in independent exchange offices - and more so in countries outside the UK.

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