Sadly, it seems that sterling is on the slide again. Individuals are often expressing their dissatisfaction as they exchange their GBP and in return seem to get very little for their money. But, how do you make the most out of a bad situation? The exchange rates may not be favourable, yet there are always ways you can maximise your returns. Read on to discover some top tips for getting the best exchange rate for other international currencies too.
Use the internet
Online shopping has boomed and it seems that you can do virtually anything online nowadays. You can pay your bills, redirect your post, buy your groceries, and of course order your travel money, as well as topping up your phone credit. You are much more likely to benefit from better exchange rates on the internet in comparison to in-store. After all, you need to think of it like this; online foreign exchange companies are competing on a nationwide scale online, whereas stores only have to compete locally with one and another. There is a greater incentive to offer better exchange rates online – companies need to if they are going to entice you to use them.
Try not to use your debit or credit cards
When you go on holiday you should avoid using your debit and/or credit card at all costs. Let’s say you are on holiday in Spain. You’ve taken your family out for a meal and you have paid for it on your debit card. Your bill will be given in euros, yet the money on your debit card is in GBP. So first and foremost, your pounds will be converted to euros, and you can rest assured that the exchange rate will be extremely poor. But if that was not enough, you actually get charged a transaction fee when purchasing something or a withdrawal fee when taking cash from an ATM. How much you get charged depends on your bank. Yet you should be mindful that some banks do not offer a fixed fee, meaning the more you spend the more you pay.
Use a pre-paid card
Instead of using a debit or credit card, you should look into using a pre-paid card, otherwise known as a cash passport. You can top up your card with cash before you go away, and most pre-paid cards hold several different currencies. These cards tend to offer better exchange rates in comparison to the other options available. Not only this, but they are a lot safer than carrying around cash.
Don’t get your travel money from the airport
If you want the best rate the last place you are going to find it is at the airport. You should never ever get your foreign currency from here. After all, these companies know that they are your last resort before you fly away. They also don’t have any competition in the form of other foreign exchange companies. Therefore their rates are dire.
Use traveller’s cheques
And last but not least, another way to capitalise on a good exchange rate is to use traveller’s cheques as your form of travel money. If you are savvy then you can analyse the exchange rate daily until you find the best rate. When you find a rate you are happy with you can then acquire your traveller’s cheques.
*This is a collaborative post