Pack the right plastic if you’re heading away this winter

With Christmas fast approaching and the colder weather setting in, many Brits may be contemplating a winter getaway.

Whether you're hitting the slopes or catching some winter sun, getting the best deal on your foreign currency can make a big difference, especially with a weakening pound.

While using credit or debit cards may be the easiest way for tourists to pay for things while on holiday, the way providers charge for usage varies enormously and those using an uncompetitive product could find that costs soon mount up. Prepaid cards are becoming an increasingly popular payment method for travellers and can be topped up with the appropriate currency before travelling and used in shops and restaurants just like a debit or credit card.

Peter Harrison, travel money expert at moneysupermarket.com, said: "There are now a few different options available to holiday makers and picking the right travel money product could save them a packet. Prepaid currency cards are great for budgeting as consumers can only spend up to the value of funds that they load onto their card. Another advantage is that if lost, customers can have their card replaced, usually for a fee of around £10, with all the funds in tact."

"The market leading prepaid cards from FairFX or CaxtonFX charge no purchase or foreign loading fees and can be topped up online or over the phone for free with a debit card.  Most prepaid cards offer an excellent rate of exchange; however some will be better than others so it's worth shopping around to ensure you're getting the best deal."

You may not need a prepaid card if you have one of the best debit or credit cards for use abroad. Many banks and building societies will charge a transaction fee every time you make a purchase on your debit card and ATM fees are common for most debit and credit cards. However, some are cheaper than others.

For those using a debit card, an account such as Nationwide FlexAccount offer consistently good rates when used outside of the UK and has no charges for usage in the European Visa Region. For example, customers using the Nationwide card rather than the Current Plus account from NatWest, could save themselves £45.00 on fees when withdrawing £1000 from ATMs outside the UK.

For those using a credit card, it's important to remember that most cards, both on cash transactions and purchases, charge a transaction fee when used abroad and these can be as high as 2.99 per cent. Nationwide's Gold and Santander Zero Cards have no transaction fees, however as with all credit cards, customers should avoid taking out cash from an ATM or they could be hit with a withdrawal fee and be charged a higher rate of interest from the transaction date.

Peter Harrison's said: "It can be costly for consumers to use their current accounts or credit cards abroad, so they should check the terms and conditions with their provider before travelling. Unfortunately there is no one product that ticks every box, so customers who are unhappy with their current provider need to understand their requirements and shop around to ensure they are using the most appropriate product."