Getting the best deal on your travel money
With school holidays fast approaching and holidaymakers keen to make every pound stretch, analysis by moneysupermarket.com shows that it really does pay to spend time researching your travel money options before going abroad. Sun seekers could have an extra £97 to spend on holiday activities, by taking the time to explore all the options available.
Travellers' who rely on the bureau de change at the airport could find themselves paying a substantial amount more than if they looked into using a prepaid or debit card. Using a Fair FX prepaid card to gain €1,000 would cost £842.11, while using a Nationwide Debit card would cost only £831.12 compared to paying £928.12 at a Thomas Cook bureau de change at Manchester airport
Once abroad, holiday makers should consider the different options available when using their debit, credit or prepaid cards. Based on five cash withdrawals abroad, a Thomas Cook credit card would charge £876.75 for €1,000 compared to £831.12 by using the Halifax Clarity credit card, although all credit cards will charge interest from the day of making the cash withdrawal, some as high as 29.9 per cent APR. The best credit card for cash withdrawals abroad is the Halifax Clarity credit card which charges just 12.9 per cent APR.
Bob Atkinson, travel expert at moneysupermarket.com said: "Brits who spend time researching all the different options available will come up trumps in getting the best deals for their travel money. Waiting until the last moment to sort out travel money at the airport will leave them worse off than if they had planned ahead and searched for the best deal, likewise buying direct on the high street from a travel agent, the Post Office or your bank will cost you more.
"Looking at the differences between using a prepaid card, buying online or at the airport it is clear that there are savings to be made. Prepaid cards from FairFX or CaxtonFX lead the way in giving consumers the most spending power as they have no purchase, withdrawal or foreign loading fees and can be topped up online or over the phone for free.
"It also pays to consider which credit or debit card to use, as the Halifax Clarity card has no charges for overseas usage and no transaction fees in both Europe and the US all of which can decrease holiday spending money. However, although the card has no cash withdrawal fees, you will be charged interest from the day of withdrawal until the transaction is paid in full, so a pre-paid card or Nationwide debit card would be a better option at a cash machine.
"It may take a little extra time to search for the best deal available, but consumers should get into the habit of shopping around to get the most for their travel money, as they would for any other big ticket purchase."