If you’re getting ready to go on holiday abroad, one of the most important things to arrange is your spending money. Having the right amount of cash in the correct currency for your destination is pretty much essential wherever you’re going. There are also things you can do while you’re abroad to minimise the risk of incurring extra costs.
But it’s not always simple if you’re keen to get the best deal, so you’ll want to consider all of the following factors in order to get the best value for money.
1) Choose your timing wisely
Since exchange rates depend on various economic factors, they can often fluctuate significantly over a short period of time. Having said that, it’s usually possible to see a current trend in the value of a particular currency, so you can decide whether to buy now or wait until nearer the time for a better deal. If the pound is getting weaker against the currency you need, it might be a good idea to get all your cash sooner rather than later.
Visit http://www.xe.com/currencycharts/ to view recent exchange rate trends.
2) Be careful with commission
As we mentioned, exchange rates will vary on a day-to-day basis, but different places will also charge different levels of commission. Some outlets will advertise the fact that they offer “commission-free” exchanges, but this could be a way to compensate for an expensive rate. The combined effect of the rate itself and commission percentage will affect the price you pay for a fixed amount of foreign currency.
You can visit http://travelmoney.moneysavingexpert.com/ to compare exchange rates.
3) Avoid cards if you can
Sometimes you will be able to use your debit card abroad without incurring additional charges, so this is worth checking. However, even in this situation you will probably be subject to a poor exchange rate. A credit card is even worse because additional charges are almost guaranteed, plus you’ll start building up interest on your transaction immediately. Bringing enough cash with you will always work out to be better value.
4) Get currency insurance
You may not have heard of it, but getting insurance specifically for your foreign cash might be a good idea if you want to protect yourself from unexpected costs. If you lose some of your money or it gets stolen while you’re abroad, this may be covered by your travel insurance, but on standard policies this isn’t likely. A good policy will have a relatively low excess and cover you up to larger amounts. The main benefit to all this is peace of mind, so you’re free to enjoy your holiday without worrying too much about money.
If you are planning on travelling abroad soon, we hope you have a fantastic time. Remember that you can pre-book your airport taxi transfers with us and enjoy the professional service we pride ourselves on. Simply contact us to arrange your transfers to and from any airport across the UK.