How to save Money when buying Foreign Currency
The credit crunch has hit our spending at home and now the currency crunch is waiting for us when we go on holiday.
The pound is at its lowest ever rate against the euro and thus it is essential that we get the best possible rate when exchanging your pounds for euros.
When you are planning and booking your holiday it is easy to forget about your Euros until the last minute. We then simply go to the nearest or most convenientsource. You may even leave it until you get to the ferry terminal or the airport.
However as with most financial services it pays to shop around. Try following this 4 step approach.
1. Check the official exchange rate for the Currency you will need. (You can use the link at the bottom of this article to go to Yahoo Finance Currency Converter if you so wish.)
2. Calculate the total cost by looking at the actual exchange rate on offer the commission or admin charges you will have to pay. Commission free is not that attractive if the exchange rate on offer is poor.
3. If you are booking your holiday several months in advance it can also pay to keep an eye on exchange rates. In October when I visited Menorca the rate was 1.2 Euros to the GBP. Today it is nearer 1.1. If possible buy when the time is right rather than leaving it to the last minute.
4. Credit cards are often regarded as a better bet than cash and certainly the exchange rate can be more advantadeuos when using cards. However make sure whether your card company levies any additional charges for purchases abroad.