Get More Currency For Your Money

By taking a little care how you get foreign money, you'll have extra to spend on that lovely foreign food.

As I forecast last week, we might have to bid a tearful goodbye to cheap flights soon. However, we'll always be able to shop around for the best foreign money deals. I'm going to tell you where to look, plus how to pay for things abroad when you eat too much and the cash runs out.

Foreign currency exchange

When you purchase foreign currency, the exchange rate you're quoted really matters. If you buy £500-worth of euros, shopping around can easily get you an extra ¬20 (about 3% more).

The last time I travelled, the cheapest online provider I could find was Travelex. Through Travelex you can buy online and collect your money at the airport, so you save on delivery costs. Don't actually buy at the airport though, that's expensive.

The closest competitors I found were Marks & Spencer, who send you the money in the post, and the Post Office. It makes no difference whether you're charged commission or not; they all make a profit from you somehow. Just go for whichever provider gives you the most foreign currency for your budget.

Getting cash abroad

You get a much better deal if you sort out money before fly than if you withdraw cash abroad. If you're a greedy pig like me though, you always underestimate your food budget. You need just one more meal to get the energy to slob about in Park Guell and your pockets are empty. What do you do?

You can't be sure that foreign foreign exchanges (that's not a typo) will be as competitive as over here. You can't even be sure that they'll understand what you're saying: Is that a Qatar Rial or a Saudi Riyal you want sir?

One option is to withdraw cash from machines, but this is costly. Whether you use debit or credit cards, you're usually charged at least 2% by the overseas provider, with a minimum fee of £2. Some cash machines charge an additional fee as well, so you might want to try a couple to see which is cheapest. On top of this, your own card provider probably charges at least 2.75% for the conversion.

It's usually less expensive to pay for goods using your card, but check with your provider to see if they charge for overseas purchases, and the amount they charge. See this article for more details.

> Where next? Compare credit cards, and take a look at travel insurance deals.