The best and worst ways to get foreign cash

The Telegraph recently reported a travel money rip-off, saying we pay £16 extra at airport exchange bureaux based on the average £286 foreign-exchange transaction compared with Post Office prices.

However, the savings available are even greater, because The Post Office doesn't even offer the top foreign exchange prices.

From dearest to cheapest, here are the best and worst ways to get foreign cash or pay for things abroad.

7. Foreign exchange at airports

Costly airport foreign money hits the news frequently, yet people still buy there. We're not kidding when we say it's expensive. You're throwing away £20+ for every £300 you exchange. If you lost a £20 note, you'd be peeved all day.

6. Foreign exchange from banks, Marks &  Spencer, and the Post Office

Banks are expensive for foreign exchange. M&S and the Post Office fit roughly in this price bracket, although they're sometimes a bit cheaper.

5. Foreign exchange from the internet

Travelex Online offers much better rates than its airport bureaux, or banks. Conveniently you can order the currency online and pick it up at the airport.

However, several other internet providers are normally cheaper, particularly if you make bigger orders for free delivery. Try Interchange FX, Thomas Exchange Global and Online FX.

4. High-street bureaux

Online bureaux, such as all those mentioned above, tend to have high-street bureaux too, with the same or better deals. When checking online prices, get the number of the nearest branch and call up to see its rates.

In any case, you can save on delivery for smaller orders if you order online and collect the cash in person.

3. Exchange bureaux overseas

This method I know least about, as I'm relying here largely on reports from readers over the years. Many readers have written in saying they find high-street bureaux in foreign countries are cheaper than buying in the UK. If they're right, this is number three.

2. Cards for cash withdrawals

The best type of card to use for cash withdrawals is a prepaid currency card. Unlike the majority of credit cards and debit cards, the best prepaid currency cards won’t penalise you with any fees or interest charges overseas. You also won’t always be charged a foreign transaction fee either when you use the cards in shops and restaurants.

You can simply load up your card with funds and away you go. Then, if your funds run out, you can simply reload the card.

You can find out more about pre-paid cards in The best cards for shopping abroad right here at lovemoney.com.

1. Cards for overseas purchases

A small number of debit and credit cards when used for purchases overseas give you the cheapest way to go about this whole foreign money business.

Most cards are expensive, but this is four credit cards shine:

• Santander Zero credit card
• Halifax Clarity credit card
• Post Office Classic credit card
• SAGA credit card

These cards charge nothing whatsoever for making purchases abroad, so long as you clear your entire credit-card bill next month.

Nationwide's card is no longer in the top four, because, when you're outside the EEA, Turkey and Israel, it'll usually charge 1%. Inside those countries it matches the other cards.

When paying by card overseas, the vendor may offer to let you pay in pounds. Say no for a better deal.

• Where ever you are in the world, don't fall for these12 credit card booby traps.
• Find out somegood news about your credit card
• Get one of thesenine extremely long interest-free cards
  
  

Compare credit cards at lovemoney.com