3 top tips to get the best currency conversion rates
With the half term holidays fast approaching, it’s a great time to jet away somewhere. Whether you plan to seek out the winter sun, or explore the culture of a new city; one important thing you’ll need to sort out is your travel money.
But with so many options from where to order your currency, how long in advance to order it, and how to pay for it; it can become confusing to see which is the ‘ideal’ way.
These three tips will help you to get the best value for money when purchasing your foreign currency.
Know the exchange rate
Before you purchase your foreign currency, it’s worth doing some research into the exchange rates. Whilst you may have a fairly good idea on what the exchange rate might be, unexpected factors can cause fluctuations (we all know how Brexit affected the Euro!)
In fact, it’s these factors that have caused the Pound to weaken – it’s now worth 14% less against the Euro and Dollar compared to this time last year. For those who’ve holidayed in the Euro-zone or US in the last 12 months, and are planning to visit again; you’ll need to order slightly more currency if you want to enjoy the same standard of living (we’ve found that people are ordering 10% more travel money compared to last year).
Of course, there’s nothing to say that you can’t still enjoy your holiday whilst watching your pennies; but understanding the change in the exchange rate will help you to budget if needed.
Similarly, if you’re heading off on a city break to Belgrade, or a beach holiday in Antigua, you may not even know that you need to order Serbian Dinars or East Caribbean Dollars (don’t worry, we had to Google it too!); let alone how many there are of each in the Pound.
Having a good idea of the exchange rate will help you out in the long term. Not only will it help you to understand where the best rates are; but you’ll understand how much items cost when you visit the country.
Order before you travel
Picking up your travel money at the airport may seem convenient, but exchange rates aren’t always the most competitive rates.
Ordering your currency before you leave for the airport doesn’t have to be difficult – there are many high street shops that offer travel money, in addition to bureaux de change, banks and even the post office.
By knowing the rough exchange rate beforehand, you can compare vendors online or in-store to work out which deal is the best. You can check out our travel money rates online, to see rates daily.
Don’t use your debit/credit card abroad
Purchasing on your debit/credit card abroad might seem like another convenient way to spend your money overseas. However, many cards incur charges, so your bank balance could be unexpectedly higher when you return from holiday.
If you prefer not to carry cash with you on holiday, then you could look into getting a travel money card. That way, you pre-load your money and can spend abroad without the worry of fluctuating exchange rates, or possible bank charges. Just be aware that if you wish to withdraw cash from an ATM machine, you’ll be charged – so it’s best to withdraw a larger amount of cash in one go, as opposed to several smaller withdrawals.*
Holidays are a great way to relax and unwind, but they can take a while to save for. It’s understandable you want to avoid any unnecessary charges. Knowing where and how to purchase your travel money in advance can help you to save that bit extra.