Last year when planning my holidays, sorting my travel money was one of the less important tasks that came to mind whilst organising my trip. I’d spent hours trawling tripadvisor’s fictional reviews, I’d compared airline prices and I’d even shopped around for a pair of white linen trousers I knew I’d only ever wear once in my life. All that time and effort and not once had sorting my currency crossed my mind.
Looking back, I wish I had taken more time to plan my travel money. I was travelling to Sao Paulo and due to the limited currency; I naively changed up ALL my travel money at the airport upon arrival. Now I know I could have saved almost 10% on my holiday money and in Brazil that is a LOT of Caprinhas on the beach.
Here are 3 foreign exchange treasures to ensure you get the most out of your travel money.
Plan in Advance
Whilst not exciting, planning your travel money in advance is the main key to saving money on your travels. If you are organised and savvy, it is most likely that you will get the best deals. Make sure you research travel money providers in advance and look out for currency ‘flash sales’.
If you have left your travel money to the last minute then try not to get it changed up at an Airport as this is where the worst rates on the market can be commonly found. Whilst it is not ideal, some companies allow you to order your travel cash online to be picked up at the airport. These are not usually very competitive rates however, they will be slightly better than just turning up at the airport kiosk.
Use Online Comparisons
As a rule of thumb, online travel money providers provide the most competitive rates. The companies have no costly overheads of kiosks and so pass these savings on to their customers in the form or more competitive exchange rates.
Ever growing in popularity are prepaid currency cards which many of these online currency specialists provide. These prepaid cards offer some excellent exchange rates even in restricted currencies and also, provide a safe way to carry money abroad. At the time of writing, Moneysupermarket.com is ranking FairFX.com top with their fixed 1.4% Foreign exchange fee on their Anywhere card.
Also available online are currency specific cards, usually found in Euros or Dollars. These cards are loaded with the specific currency at the time of the transaction and so you “lock in” your currency at the rate at that time. The currency is then available on your card for your trip having already been bought at that rate. This eliminates any holiday worries about fluctuating rates but can also provide an excellent way to take advantage of a great exchange rate prior to travelling.
Pay in the local currency
Whilst travelling, some retailers will occasionally ask if you wish to pay in Sterling. As tempting and easy it may seem to have the price quoted in Sterling, this price they offer will usually be inclusive of their own exchange rate. This rate is often a lot higher than that of any travel money provider or your bank. Always ask to pay in the local currency as this will often result in a lower price overall.
