Published: 08/08/2022
Either buy travel money online, at a bank, building society, travel agent, bureau de change, some supermarkets, or the Post Office.
Travel money providers often offer different, some better than others, exchange rates. Some charge commission for changing your money.
It’s wise to shop around to get the best deal for your holiday spending money.
Online buying usually means better exchange rates than face-to-face because of the reduced overheads. Usually, there’s a wider range of currencies available too.
Either enter how much cash you have in GBP, or how much cash you need in the foreign currency. The site calculates how much of the opposite currency you’ll receive, applies any charges or commission, giving you a final price.
You can then pick whether you want your travel money delivered to your home (you may be charged a fee), or you want to click-and-collect
Use your debit card to pay for the foreign currency you want at the exchange rate the provider is offering for that day.
It may be a percentage of the transaction or a flat fee, but it should always be included in your cost comparisons.
Some travel money providers offer a commission-free exchange, so the exchange rate they offer isn’t as competitive as others. Check how much you’d have to pay and the foreign currency value you would get if you exchanged elsewhere.
Some providers offer a buy-back guarantee for any leftover currency, buying back at the same exchange rate that you bought it for and won’t charge a commission.
Different places offer different exchange rates. So…
Check the overall cost - don’t just look for the highest exchange rate, take commission and delivery charges into consideration
Pay with your debit card - don’t use your credit card as you may incur extra fees
Get organised - shop around for travel money so you can compare deals and make the most of free delivery options.
It’s always a good idea to take some local money to pay for essentials like food, drink, tips and taxis. It’s accepted everywhere. Taking large amounts can be risky, but it may help you stick to a budget if you only have a limited amount of cash to spend, instead of just swiping a card
Make sure you have travel insurance. If your cash is lost or stolen most policies only cover you up to a certain amount so check your travel insurance policy to know what you’ll be covered for.
If you don’t want to carry around large amounts of cash, there are other ways of paying for things on holiday:
Lots of travel money companies offer prepaid travel cards. Top up the card with pounds sterling and withdraw foreign currency from an ATM abroad or use like a card to pay.
A travel credit card can help avoid overseas charges you might have to pay when using a debit or credit card, and may give you a more competitive exchange rate.
Digital banks like Monzo and Starling have all the same functionality as high street current accounts, but also usually offer free transactions and withdrawals abroad.