Don't be caught out in the cold with your travel money
With half-term only a few weeks away many Brits will be planning to escape to foreign climates, but following last week's collapse of foreign exchange website Crown Currency Exchange, moneysupermarket.com urges all holidaymakers to choose their holiday money carefully before travelling.
Analysis by Britain's number one comparison site shows travellers could save a packet by arranging their travel money before jetting off. Travellers who end up exchanging money at the airport bureau de change will pay significantly more than if they withdrew the money at their destination using a prepaid card. For example, the cost of exchanging €1,000 at Thomas Cook in Manchester airport is £984.25, £91 more expensive than withdrawing the cash abroad with a prepaid card from Fair FX, which would cost £890.87.
For those travellers who prefer to use a debit or credit card for purchases, there are also savings to be made with Nationwide's debit card which costs £875.94 for €1,000 compared to using NatWest's current plus account which would cost an extra £42 for the same amount of Euros. However, travellers heading to the US should remember that Nationwide's debit card has transaction fees for usage outside of the Visa European Zone.
Clare Francis, site editor at moneysupermarket.com, said: "With news this week of the collapse of foreign exchange website Crown Currency Exchange, holidaymakers preparing for their autumn escapes should be extra vigilant when deciding how to organise their spending money.
"For customers affected by the collapse, there is some good news for those who paid for their currency using a credit card, as they should be able to claim a refund from their credit card provider. For other customers, it is expected that it could take up to six months for the situation to be resolved. In the meantime, holidaymakers can still find alternative options for their travel money and shop around to give their holiday spending money pot a boost.
"In particular, prepaid cards from CaxtonFX or FairFX can give consumers the most bang for their buck and have the added benefits of no purchase, withdrawal or foreign loading fees, and holiday makers can budget beforehand for their trip.
"When using a credit or debit card abroad, the Halifax Clarity Card comes out trumps as it has no charges for overseas usage and no transaction fees in both Europe and the US all of which can help boost holiday spending money.
"Holidaymakers may feel that travel money is at the bottom of the list when preparing for their holiday, but taking time to research their options will leave them with more cash to enjoy an extra ice cream or three."