How to buy currency
One of the most exciting parts of planning any overseas trip is buying foreign currency. Perhaps it is the thrill of a different texture, size or colour of banknote or perhaps it is simply the realisation all your designs and plans are coming to fruition, but there is something undeniably exhilarating about buying currency.
Far too many people seem to leave this to the last minute and then are forced to figure out how to buy currency at the airport which invariably charges a steep commission and offers a meagre rate.
Follow our quick and easy guide to the options available to you when buying currency and make sure you that you start your next holiday on the right foot.
Shop around and explore your options as there are inevitably a number of places to buy currency from, but not all of them offer you the best rate, and some may charge a high commission.
It is always a good idea to take a mixture of cash and either credit cards or travellers cheques as a way of safeguarding your money and giving you flexibility. When you consider that British holiday makers abroad are victims of theft every 31 seconds, it makes sense to have some of your money protected. There are a couple of options available when it comes to deciding how to safeguard your money.
Bank cards
Barclays is a surprisingly good option when it comes to buying travel currency and charges zero commission on exchanges as well as offering free home delivery the next working day. This bank also has an outstanding service called the Travel Money Card.
With the Travel Money Card you can pre-load US dollars, Pounds sterling or Euro onto a specially designed, pin-protected bank card which is accepted at all shops that handle Visa transactions. This will allow you shop at over 16 million outlets throughout the world and you have the option to check the balance of your card, or to top up by phone at any time of the day or night.
Perhaps the biggest advantage for the traveller is that it allows you the convenience of taking both cash and a safe card which should provide you with more security and peace of mind. If you lose your card a simple phone call is enough to get it cancelled and order a replacement. This option is well worth checking out although it is currently only available to existing Barclays customers.
Normal debit cards from banks such as HSBC, Natwest and LLoyds TSB will work at many ATMs abroad but withdrawals will be subject to a withdrawal fee, and there is the added uncertainty of exactly what kind of exchange rate you will get. If you are considering taking your debit card abroad speak to you bank and find out exactly what charges are in force for withdrawals overseas.
Travellers Cheques
American Express has a good reputation and strong history of providing holiday makers with travellers cheques. Their cheques are secure, easy to use and widely accepted, offering you a viable alternative to carrying large amounts of cash in your bag or wallet.
American Express travellers cheques can be exchanged in hotels, banks and foreign exchange bureaus around the world. Should they be lost or stolen, they can quickly be replaced, typically within 24 hours. They also have no expiry date, so they can be used again and again which is useful for frequent travellers. With travellers cheques in general you should write down their serial numbers and keep this information in a safe place, separate to the cheques themselves.
There are a number of companies which offer travellers cheques so you may want to explore those. One thing to keep in mind, whichever company you decide to go with, is that commission charges are fairly common and some companies may charge a handling fee. Arguably though, a small fee is worth the security of knowing your money is safe if your wallet is lost or stolen.
Cold hard cash
You can buy currency from a number of companies but before you come to actually buying your travel money it can be a good idea to keep an eye on fluctuations in the exchange rate of your chosen currency. This can be done on a comparison website such as XE Exchange which allows you to track and match different currencies against each other.
Once you have a good idea about the value of the currency you will be buying, start looking around at some of the places that you can buy it from. Banks, travel agencies and exchange bureaus are all options, but make sure you choose somewhere that will give you the best deal. A few good points to keep in mind are: What is the exchange rate offered and how does it compare to the provider’s competitors? Exactly how much, if any, commission does the provider charge on exchanges? How much foreign currency will you get once you have exchanged your pounds? Knowledge is power when it comes to money and you can save yourself a decent amount just by planning ahead and understanding all of the charges involved.
Finally check out some of these places for ideas on how to buy currency:
