Getting The Best Currency Rate
If you are planning on going abroad for a holiday this year, you may not have thought too much about your currency options yet. It is however an important consideration as failing to choose the best currency rate may leave you significantly out of pocket. We shall explore some of the options available and help you decide what is likely to be best for you.
Cash is probably the most obvious currency option available, and the main benefit is that cash is accepted everywhere you go. That is also where the benefits of carrying cash end. Cash is usually the most expensive option due to the commission that has to be paid for the physical transaction of buying cash. It is also the least secure option as if you are targeted by pickpockets there is no comeback.
While you may be forgiven for thinking that travellers cheques are a thing of the past, they are in fact still a commonly used currency exchange option. Their real benefit is one of security, because if they are lost or stolen then they can be cancelled and replaced by the issuer quite easily. The problem with them is that next to nobody accepts them anymore. To exchange travellers cheques you will have to queue up at a local bank, and very few holidaymakers want to waste their holiday constantly queuing for money.
The most common currency exchange option now is the credit card, and indeed it does have several advantages. Convenience is the main benefit as the card is small and easy to carry, and it is accepted at the great majority of retail outlets. The issuer will also offer protection against loss or theft so it is also a secure option. The down side is that fees are often excessive, and because credit is afforded, it is all too easy to overspend and have repayments souring the memory of an otherwise enjoyable holiday.
Debit cards are very similar to credit cards and provide the same benefits apart from the credit option. Withdrawal fees are however significantly greater, and although commonly accepted, there are fewer retailers that will accept debit cards compared to credit cards.
The prepaid currency card combines elements of all previously mentioned options and is by far the best for the average holidaymaker. Like credit and debit cards they offer security and convenience, but at a fraction of the cost as fees are lower and a better exchange rate than cash is offered. In addition, you are unable to overspend as the card is loaded with an amount determined by yourself before you depart.
In conclusion, the prepaid currency card is the best option to choose when looking for the best currency rate. While many other options are available, they are probably best used as a back up only and by using a prepaid card you are safe in the knowledge that you will not spend any more than you have budgeted for.
About the Author
Travel money doesn't have to be a barrier to travel. Tom Fisher is a travel writer and has travelled the world but always returned to his home in the UK. Try http://www.fairfx.com for cheaper travel money
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