If you want to have the perfect holiday, these five financial products will help!
Whether you're saving up for the trip of a lifetime or planning a 'staycation' in the UK this year, you must plan ahead to get the most out of your holiday. Here are five financial products that will help you and your money go the extra mile:
A superior savings account
Begin your holiday planning by finding the right savings account to finance your next trip. It's better to save up for a holiday than borrow to fund it, simply because you earn interest instead of paying it.
Ideally, look for an account that pays a market-beating rate of interest, but offers easy access to your cash. For example Coventry BS offers the Online Saver, paying 2% (including a 0.4% bonus in the first year) and you can open it with just £1. You get four free withdrawals a year.
Alternatively you could put a little money aside each month in a regular saver. These accounts pay a great rate of interest, but limit the amount you can actually save.You also won't be able to make any withdrawals.
For example, First Direct offers a cracking regular saver, paying 6% interest. To qualify, you need to pay in between £25 and £300 a month, each and every month. You'll also need to have a 1st account current account. That's not the worst deal in the world - it wins every customer service award going and pays you £100 just for taking out the account. You also now only need to pay in £1,000 a month, rather than £1,500. For more read First Direct cuts 1st Account minimum monthly deposit.
Top-notch travel insurance
Remarkably, one in four Brits (25%) that encounter trouble abroad doesn't have travel insurance. Frankly, this is crazy, as it's easy to find great cover at competitive prices.
The trick is never to buy travel insurance from travel agents or tour operators, whose policies can cost several times as much as the best buys. By shopping around for single- or multi-trip travel insurance, you should be able to find five-star cover for far less than you think. Don't leave home without it.
Inexpensive holiday money
[SPOTLIGHT]Finding the right provider for foreign currency can be like crossing a minefield. Choosing the wrong supplier can reduce what you get for your money by 5% to 10%.
When choosing where to get your travel cash, you need to weigh up a bewildering array of costs, including varying exchange rates, commission fees, delivery charges, card charges and so on. Having conducted many currency surveys over the past decade, I have found ordering online for later collection to be the cheapest route, as this avoids delivery charges.
In the past, I've found these providers offer consistently good value for money: ICE (branches across London), Moneycorp, ASDA and Travelex (its website only, not bureaux de change).
The correct credit card
It's almost always a big mistake to take your everyday credit card abroad for overseas spending. This is because all but a handful of cards charge steep fees for processing payments in foreign currencies (typically, 3% of the transaction value) and for cash withdrawals overseas.
Taking the wrong plastic on holiday could mean paying surcharges exceeding 5% of the cost of your goods. In effect, this adds £50 to every £1,000 you spend. These three low-charging cards are all Best Buys to take abroad:
|
Issuer/Card |
Cash fee/ Min. charge |
Foreign use charges (EU/World) |
|
Halifax Clarity Credit Card MasterCard |
0%/£0 |
0%/0% |
|
2%/£2 |
0%/0% |
|
|
2.5%/£3 |
0%/0% |
The right home insurance
Finally, before you jet off to enjoy sun, sea and sand, don't forget to make sure that all is secure back home. Ensure that all doors and windows are securely locked and bolted, and discourage opportunistic burglars by hiding all valuables securely out of view. After all, the last thing you want to come home to is a broken-into property.
Also, if you're going to be away for some considerable time (say, 30 days or more), then check your home insurance policy. You may find that your cover is not valid for long trips overseas. If so, contact your insurer to extend your policy to cover your entire trip, so you can relax and enjoy your holiday without worrying about your possessions back in Blighty.