How To Avoid Holiday-Money Horrors

Motoring and Travel

31 July 2007 | 0 Comments

If you don't want to get ripped off when buying foreign currency for a trip abroad, read these travel-money tips!

With the school summer holidays well under way, millions of holidaymakers will be jetting off overseas over the next few weeks. However, sun-seekers looking to take a break from this year's truly awful British summer must tread carefully when it comes to buying foreign currency.The market for holiday money is notorious for using sneaky marketing and spin so as to keep charges hidden from unwary consumers and make it all but impossible to compare deals. One trend in the holiday-money market this year is the tendency for more and more currency providers to offer 'commission free' deals. However, in order to make up for this lost revenue, they have worsened their exchange rates, so paying close attention to these should be your top priority.To make life easier for you, I've done the spadework. Here is a review of the online rates available at nine leading travel-money providers:How much does it cost to buy a thousand euros?ProviderExchangerateCommissionchargeTotal (£)ADD delivery feeTravelex.co.uk1.4471Nil691.04Bureau collection only.Marks & Spencer1.4280Nil700.28Free branch or homedelivery available. £5home-delivery fee fororders under £500.Lloyds TSB1.4200Nil704.23Free branch delivery.Home-delivery fee of£4.50.HSBC1.419781Nil on ordersof £100 to2,000704.33Free home deliveryavailable. £3.95 home-delivery fee fororders under £250.Halifax1.4171Nil705.67Branch deliveryavailable. Home-delivery fee of £5, notavailable for onlineorders.NatWest1.4159Nil706.26Free branch or homedelivery available. £5home-delivery fee fororders under £500.Nationwide BS1.4157Nil706.36Home-delivery fee of£3.50.Post Office1.4094Nil709.52Free branch or homedelivery available. £5home-delivery fee fororders under £400.Thomas Cook1.4000Nil714.29Free branch or homedelivery available.Source: Moneyfacts and providers' websites, 30/07/07As you can see, Travelex.co.uk once again takes top honours, as it does every time I compare travel-money deals these days. Marks & Spencer claims the crown for high-street firms, with Lloyds TSB being the best of the big banks.As usual, you can rely on travel agents to offer the worst deal, with Thomas Cook taking the wooden spoon. The difference between best and worst is an extra £23.25, which is a worthy saving.How much does it cost to buy a thousand US dollars?ProviderExchangeRateCommissionchargeTotal (£)ADD delivery feeTravelex.co.uk1.9911Nil502.23Bureau collection only.Marks & Spencer1.9490Nil513.08Free branch or homedelivery available. £5home-delivery fee fororders under £500.HSBC1.946656Nil on ordersof £100 to£2,000513.70Free home deliveryavailable. £3.95 home-delivery fee fororders under £250.Nationwide BS1.9437Nil514.48Home-delivery fee of£3.50.Lloyds TSB1.9331Nil517.30Free branch delivery.Home-delivery fee of£4.50.NatWest1.9307Nil517.95Free branch or homedelivery available. £5home-delivery fee fororders under £500.Halifax1.9296Nil518.24Branch deliveryavailable. Home-delivery fee of £5, notavailable for onlineorders.Post Office1.9280Nil518.67Free branch or homedelivery available. £5home-delivery fee fororders under £400.Thomas Cook1.9100Nil523.56Free branch or homedelivery available.Once more, Travelex.co.uk grabs gold and M&S takes silver. HSBC takes bronze as best bank, with Lloyds TSB dropping to fifth behind Nationwide BS.Yet again, the Post Office and Thomas Cook are to be avoided, propping up the bottom two slots in our table. The difference between best and worst is an extra £21.33.Finally, here are five quick tips to getting the best deal on holiday money:Take the time to shop around by checking a few providers. Don't just visit your local bank or travel agent.Plan ahead and don't leave it to the last minute. Buying at the airport may be convenient, but it is also remarkably expensive.Watch out for delivery charges, which can be as high as £5.50.Many providers still charge a commission fee for sterling travellers' cheques, which adds 1% to 1.5% to their cost. So, don't overlook commission charges.If you pay by credit card, then you will probably be charged a cash-handling fee of around 2.75%, which will more than wipe out any savings made by getting the best exchange rate. Stick to paying by debit card, instead!> Entertain The Kids For Less | Ten Ways To Cut Your Motoring Costs

Comments

Be the first to comment

Do you want to comment on this article? You need to be signed in for this feature

Copyright © lovemoney.com All rights reserved.

 

loveMONEY.com Financial Services Limited is authorised and regulated by the Financial Conduct Authority (FCA) with Firm Reference Number (FRN): 479153.

loveMONEY.com is a company registered in England & Wales (Company Number: 7406028) with its registered address at First Floor Ridgeland House, 15 Carfax, Horsham, West Sussex, RH12 1DY, United Kingdom. loveMONEY.com Limited operates under the trading name of loveMONEY.com Financial Services Limited. We operate as a credit broker for consumer credit and do not lend directly. Our company maintains relationships with various affiliates and lenders, which we may promote within our editorial content in emails and on featured partner pages through affiliate links. Please note, that we may receive commission payments from some of the product and service providers featured on our website. In line with Consumer Duty regulations, we assess our partners to ensure they offer fair value, are transparent, and cater to the needs of all customers, including vulnerable groups. We continuously review our practices to ensure compliance with these standards. While we make every effort to ensure the accuracy and currency of our editorial content, users should independently verify information with their chosen product or service provider. This can be done by reviewing the product landing page information and the terms and conditions associated with the product. If you are uncertain whether a product is suitable, we strongly recommend seeking advice from a regulated independent financial advisor before applying for the products.