Don't flash the plastic
It's a bad idea to buy foreign currency with a credit card because it is
treated as a cash advance with a fee of up to 3 per cent. Some banks treat
their debit cards the same way. Check with your bank to find out its policy
before you buy. Pay with cash to escape the charge. The best way to obtain
foreign currency cheaply is to open a Nationwide BS FlexAccount, a current
account which allows free ATM withdrawals worldwide.
For Irish travellers to other eurozone countries, ATM cards can offer the
cheapest and handiest way to withdraw money. Since July 2002, withdrawals of
euros in other EU countries incur the same charges that apply in Ireland -
around 20c-23c.
Point and click to save
Buying your holiday money online is cheaper than several other options
because the exchange rate on offer applies to the day you order the currency
so if you are organised you can get a great rate. Travelex, the online currency provider, says it will
provide the cheapest rate on the entire market or refund the difference.
There is even a rate tracker service that allows users to set the exchange
rate they want to buy at, $2 for £1 for example, and when that rate becomes
available Travelex will send an email alert stating that it's time to buy.
Travelex does not charge commission or service fees, but you do have to queue
up with everyone else and pick up your currency from the airport. If you are
not flying, not every ferry port or railway station will have a Travelex
bureau. Ryanair and BAA (British Airport Authority) have a tie-in with
Travelex on their websites. You can also buy foreign currency (£50-£2,500)
online with Thomson.co.uk.
The Post Office
The Post Office offers competitive exchange rates on a large selection of
foreign currencies and American Express travellers' cheques, and does not
charge commission, (with the exception of American Express sterling
travellers' cheques). Order online for home delivery (charge is £5 for orders
of less than £400; free for orders of more than £400), order in branch or by
calling 08458 500 900 and collect your money within four working days or buy
on the spot at an "on demand" branch.
M&S
Trusty Marks & Spencer Money offers commission-free currency exchange
at its bureau de change points in its larger UK stores, although there is a 1
per cent charge on sterling travellers' cheques. The &More credit card
offers 55 days' interest free credit if you pay off your balance in full by
the due date. M&S Money also provides a home delivery service with no
delivery charges as long as the sum involved is greater than £500. Order less
than that, and a £5 charge is incurred.
Updated February 2008
