If you’ve already saved money on your flights and accommodation you’d be right in thinking you’re a bit of a holiday booking guru. But what if we told you there is another way to get more bang for your buck (or Euro as the case may be!).
Here at CLC World we’ve put together a list of expert tips and hints on how to get the best exchange rate on your holiday kitty so you can push the boat out on your next well-deserved trip.
Know your jargon!
Foreign exchange has its own jargon, so be sure you understand it to avoid any problems with exchanging your money. For example;
Buy rate is the money you get when you exchange any leftover foreign currency.
Sell rate is the amount you get for exchanging pounds.
Bank rate is the wholesale exchange rate that banks use between themselves.
Keep an eye on the exchange rates
Exchange rates constantly fluctuate so they may not be the same as the last time you checked. Keep an eye on the bank rates on money converter websites to make sure you are getting your money’s worth.
Negotiate a good rate
Did you know that exchange rates are not set permanently and can be negotiated with specialist bureaus? If you are exchanging a large amount of money, you are more likely to be given a better deal on your money if you ask. You could get up to an extra 0.5% on the original rate which makes a difference.
Be wary of credit card fees
As easy as it may be to give your credit or debit card when exchanging money, you may not be getting the best value. Different card providers have different policies, however, fees usually start at £1.50 and the costs add up. You are more likely to save money by converting pounds to your intended currency.
Purchase a prepaid card
With cash or a card you are sure to spend more than you intended to. To give you more control over your spending purchase a prepaid card to avoid any indulgent shopping. With your chosen amount of money put in the card, you will be aware of how much you have and how much money is going out.
Don’t convert your cash at the airport
As easy and quick as it may be, converting your money at the airport could lose you pounds. Airports are aware that this is the last stop for you to convert your money before travelling abroad, so they offer dismal rates because… well they can. So convert your cash a few days in advance before your holiday.
Always pay in the local currency
When paying from your card abroad, shop keepers will often ask you if you want to pay in pounds or the local currency. Remember to always pay in the local currency. If you choose to pay in pounds the store will be in charge of the conversion, and their rates are likely to be poor.
Use an ATM for money exchange
To make the most of your money use an ATM machine. Although your bank may have fees for the transaction, they will rarely exceed 3%. Just be sure to check your withdrawal limit with your bank before you leave.
Don’t take cash advances on credit cards
When withdrawing money from an ATM, use a debit card instead of a credit card. When using a credit card you can be charged high interest on your transaction which will start to accumulate immediately, and that is on top of the transaction fees. So stick to a debit card.