Make cracking savings on Easter travel money

With the Easter holidays around the corner and many people preparing to jet off abroad, those who have left planning their travel money until the last minute can still make big savings on holiday cash without wasting money changing it at the airport. Those exchanging last minute at the airport bureau de change could be paying £127 extra, or ten per cent more, than someone using a debit card designed for overseas usage, warns MoneySupermarket.

Online ordering

For those needing to collect cash, MoneySupermarket found a leading option for someone buying €1,500 is to order online for collection or delivery. For example, with leading provider ACE, you would pay £1265.82 for €1,500 and in doing so could save 8.69 per cent or £120.50 compared to a direct purchase at the airport through ICE bureau de change which charges £1,386.32 for the same amount.

Pre-paid cards

A pre-paid card is another option for travellers looking to make their money work for them. A card such as FairFX would cost £1,276.46 for €1,500, based on five withdrawals in Europe, and this does not charge a fee for application or spending.  MoneySupermarket offers a range of pre-paid cards for those travelling abroad.

Bob Atkinson, travel expert at MoneySupermarket.com, said: "For those who have left their travel planning to the last minute this Easter, less time shouldn't necessarily mean it will cost you more. Travellers who change their travel money at the airport could be paying well over the odds for doing so and missing out on significant savings by not planning ahead and shopping around. For those strapped for time, both Thomas Cook and Travelex offer a service where you can reserve your currency online for same day airport collection and benefit from the internet rate and no airport commissions.

According to a recent poll, MoneySupermarket.com found that 26 per cent buy from a high street outlet with the best exchange offered and 21 per cent go to a travel agent or Post Office for their travel money. The poll also found one in six (16 per cent) used their debit card abroad to make withdrawals, and just one in five (22 per cent) currently buy online and shop around for the best deals.

Bob Atkinson continued: "It is not surprising to see a large number of people choosing the high street for their travel money due to the ease of buying money at places such as travel agents, banks, the Post Office, supermarkets and even pawn shops.  However, I would urge these consumers to make sure they are considering all possible options for their travel money to avoid throwing hard-earned cash away- it really is a case of shopping around. There are a number of providers on the high street who claim ‘top rates' for the high street, but you will find cheaper rates online or on many pre-paid cards, depending on your travel money needs. Some outlets may even ask if you have been offered rates elsewhere- in this situation say yes, but don't disclose the deal and ask the provider for the best rate they can offer before you decide."

Debit cards

There are a number of market leading debit cards specifically designed for overseas use that are a great option for account holders and regular travellers. By applying and using a card designed for spending overseas, consumers can benefit from some of the best deals around, coupled with the safety of using a pin protected card. Always give at least a seven to ten working days when applying for a market leading card, leaving plenty of time for it to arrive. The Norwich & Peterborough Building Society Gold Classic would currently cost just £1,248.94 for five withdrawals of €1,500, a saving of £127 when compared the ICE airport bureau de change charging £1,386.32.

Bob Atkinson commented: "As our poll shows, there are a large number who use their debit or credit card abroad. However, most people don't realise what charges are incurred while abroad. Holidaymakers should always check the small print to understand these before setting off abroad. Failing to do so means you could face a hefty bill on the doormat on your return. Debit and credit cards should only be used in an emergency unless they are specifically designed for overseas usage; or else check for local charges for using ATMs or making purchases abroad as some banks and retailers may charge. Again, you can quickly and easily compare features and benefits of a range of debit cards using MoneySupermarket.

"Another thing we should all look out for when using cards abroad is when retailers offer to convert the card transaction into sterling at point of sale, a practice known as dynamic currency conversion. It is best not to opt for this as retailers generally offer unfavourable rates of exchange compared to those on a credit, debit or prepaid card.

"Brits can still take advantage of good rates across Euros and US dollars at the moment - the Euro is holding fairly strong and is around 5.91 per cent better than the same time last year. For US dollars, the rate is slowly falling, yet is still up by 2.58 per cent than a year ago."