The disappointing slide in the pound means it’s more important than ever for holidaymakers to make sure they don’t get ripped off when spending abroad.
Sneaky currency conversion traps at the checkout, hidden loaded rates and hefty bank fees mean we routinely hand over more than we need to.
To help cut costs and make your pound go a little further, here’s three costly holiday money traps to avoid.
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Say no to paying in pounds
When you pay your hotel bill or spend in shops abroad you are often given the option to pay in pounds, rather than the local currency.
But this allows the retailer to use their own exchange rate for the conversion.
This proves far more expensive as they often load the rate by between 5 to 10 per cent – and in some cases up to 30 per cent – according to currency specialist Caxton FX.
This is on top of any charges made by your bank for overseas spending.
Don’t buy your cash at the airport
The most competitive exchange rates are typically found online, so try to compare prices and buy in advance.
Try a comparison tool such as MyTravelMoney to find the best rate.
But, if you forget to do this in time, make sure you at least avoid buying your holiday money at the very last minute, before you fly.
Airport exchange rates can be as much as 20 per cent lower than the market rate, according to Fairfx research.
Pick the card you travel with carefully
Banks charge around three per cent every time you swipe your card in shops overseas and three per cent to withdraw cash.
Our favourites for cheap holiday spending include the Halifax Clarity card, Tandem Bank’s cashback credit card which pays 0.5 per cent on all spends and Santander’s Zero card.
Remember to pay them off when you get home though to avoid interest.
When it comes to current accounts, Starling Bank comes out on top with limitless fee-free on spending and withdrawals.
Alternatively, Metro Bank also charges nothing, but only in Europe, while rival challenger Monzo has a fee-free ATM cap of £200 but no foreign purchase fees.
Prepaid currency cards are one of the safest options to travel with as they are not linked to a bank account.
You can load up when the rate is good and spend as normal with bank-beating exchange rates and low fees. Check the small print first though, some charge sneaky dormancy fees.
Try currency specialists Travelex, FairFX, Caxton FX, ICE and Revolut for the best cards.
>Find out more about the cheapest credit and debit cards to get in time for your trip
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