Many of us have to save up long before we fly away for our holiday in the sun so that we can make the most of our time there without having to worry about a tight budget. That’s why it’s so important that you make sure you find the best possible price when you’re buying foreign currency. There are of course various different options available to you that will help you find the best deal for your money, and here is a brief guide to what you can find.
Converting Your Money
The amount of foreign currency you can get in return for your pounds and pence depends on the exchange rate offered by the converter. The higher the exchange rate, the more foreign currency you will be offered. You should also bear in mind that some companies charge significant commission fees once they have lured you in with attractive exchange rates. Ideally you want to find a company that offers a low or even no commission fees at the same time as giving you a competitive rate. Exchange rates change constantly so it’s best to monitor them by looking at a company that deals with currency exchange, and then take advantage when you see a competitive rate.(Image by epSos .de)
Cheques and Cards
Though they are not as common these days as they once were, travelers’ cheques remain an option worth considering for your holiday spending. They are secure and allow you to get your money back if they are lost or stolen, though they do tend to be more expensive than other holiday money options as you’ll be charged commission when you buy them at home as well as be faced with an exchange rate when you convert them into local currency. Alternatively you can take the right credit card and use it wisely and find you have a convenient and cost-effective way to pay while you’re abroad. Some cards are designed especially to be used abroad, and they don’t charge fees for usage or charge less than usual credit cards. Finally you may want to consider a pre-paid card which will allow you to make purchases and withdraw from ATMs, but which will keep you from overspending or incurring large amounts of fees or charges.(Image by 401(K) 2012)
Ultimately it comes down to making your own decision about how you want to pay for your goods and services while you’re abroad, but for whatever you go for it is always a good idea to take a small amount of foreign currency for small ticket items. That way you can make the most out of your holiday wherever you are heading.
Related post : Money Essentials for Serious Travelers
Feature image by Philip Brewer