Tips For converting Money whilst On Holiday

When you're on your holidays, there are quite a few options within your reach, the most straight forward would be to withdraw the amount of money that you will require abroad and the get your bank to convert it back in the UK. Whilst this is the easiest solution, it's not necessarily the most cost effective and not the safest option either.

Take a little local currency with you - So that you can pay for small things when you immediately arrive like ordering a taxi or having a drink. This saves you hunting for an ATM when fully laden with your luggage and tired after a flight.

Cash Cards (pre-paid) - You generally pay commission on loading the card with funds in the UK although you can be charged at the ATM machine and for further top-ups whilst abroad. Try to find a card that allows free withdrawals and that can be topped up on-line.

Travellers Cheques - The safest way to carry cash on holiday is still the Travellers cheque, although they are quite expensive they are available in many denominations and can be exchanged in countless locations regardless of whether you speak the local language or not (make a photo-copy of the cheques before you go just in case you lose them).

Use a Fee Free Debit card - Several UK banking institutions now issue cards that don't charge you for drawing money out in Europe. Hunt them down and save yourself some money.

Use A Credit Card - Although usually more expensive than Debit Cards if you Shop around there are still some great deals to be had.

Safety first - Carry as little money as possible and invest in a money belt.

Keep in touch with your Bank - Inform your bank that you will be travelling abroad as they might suspend your account due to 'suspicious foreign activity', Also make a note of your banks fax and telephone number should you need to get in touch with them.

Beware of 'Dynamic currency conversion' - if you are given the choice of purchasing items in sterling (if you are from the UK) or the local currency always choose the latter as you could be hit with a much higher commission rate in the shop.

As a rule I would recommend using a Credit Card or Travel currency card as the main source of money whilst on holiday and Using Travellers cheques and pre-paid cards for emergencies.

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