What’s the deal?
A travel money comparison tool from consumer website Moneysavingexpert.com. The tool ranks holiday cash deals from 23 online bureaux de change services, taking into account exchange rates, commissions and other fees. Bureaux covered include the Post Office, Tesco, Travelex, banks with online services and Marks and Spencer.
Users are shown the headline rates and the results are ranked according to the amount of currency given for a chosen number of pounds – or the sterling cost of a certain value of currency.
The rankings take into account whether cash is to be collected from branches or delivered to buyers. Currency buyback deals are also rated.
Is this good?
The tool is useful for travellers who prefer to buy currency before going abroad, avoiding expensive rates at airports and ports. It offers an easy way to compare deals, including all fees. While it only searches online services, these usually undercut the high street, says Moneysavingexpert.com.
It includes the Post Office’s online service and M&S, which has traditionally offered a more competitive deal than high street banks. As the difference between the best and worst travel money rates is around 10 per cent, the tool could save hundreds of pounds.
Are there any catches?
The internet won’t always offer the best deal for currency. Some local bureaux, notably in cosmopolitan areas such as Bayswater in London, may offer better exchange rates with no other costs.
Delivery generally incurs charges and takes a few days, although many services allow currency to be ordered online and collected at outlets at no extra charge. Online orders can also be collected at airports.
What are the alternatives?
For travellers happy to rely on credit and debit cards, the best cards beat the online bureaux. For currency withdrawals from foreign ATMs, Nationwide’s Flexaccount Visa debit card offers the most competitive deal. It has no ATM withdrawal fees.
Most cards also “load” the underlying wholesale exchange rate by about 2.75 per cent. Nationwide has no loading in Europe, with a currency fee of just 0.84 per cent in other countries. As long as cardholders have the funds in their Flexaccount, there is also no interest charged on the withdrawal.
For overseas spending, credit cards from Santander (formerly Abbey) Zero and
the Post Office carry no currency loading or other charges. Pre-paid currency cards can be used to lock in to exchange rates before travel – perhaps as protection against sterling weakening. Caxton FX and Fair FX offer two of the best-value currency cards.
How do I find out more?
www.travelmoneymax.com
www.moneysupermarket.com/travel-money also has a listing of holiday cash services.
