Top Easter Holiday Tips on how to Save Cash Abroad

By: MoneyFacts

As the Bank Holiday weekend draws near, many holidaymakers will be looking to use this break for a trip abroad – so now is the perfect time to revisit their financial checklist to see if they have everything organised.

Whether consumers feel fully prepared for a trip away or have yet to make a start, Moneyfacts.co.uk has drawn up some top tips on how consumers can save a bit of cash.

Rachel Springall, Finance Expert at Moneyfacts.co.uk, said:

“Holidaymakers might be caught up in the excitement of a trip abroad but it would be wise for them to take some time out to ensure they are going to make their cash go as far as it can for their break. Whether taking some spending money or relying on a debit or credit card, it’s important that consumers take the necessary steps to avoid wasting their hard-earned cash.”

Gather foreign currency sooner than later

“Avoid airport currency exchange kiosks, as the convenience will come at a cost. Instead, even with just a few days to go, consumers would be better off checking online for current exchange rates to find the best deal. It is worth keeping in mind that click and collect rates are usually more rewarding than just popping into a branch as you can secure the rate of exchange. As an example, M&S Bank offers €227.98 per £200 for click and collect, but only €224.96 for home delivery or as a bureau rate.”

Be wary when using a debit or credit card

“Using a debit card abroad to withdraw cash may seem convenient, but it’s at a costly expense. A typical debit card can charge as much as £9.50 (NatWest Select Account) for the equivalent of a £200 cash withdrawal abroad, while a typical credit card can charge £11.96 (HSBC Classic Credit Card) for the same transaction*. Clearly, it pays to be more prepared. It’s also wise to inform the bank of the upcoming trip too.”

Pack a more cost-effective card

“To avoid paying out on unnecessary fees, holidaymakers would be wise to apply for a credit card designed specifically for use abroad, or even switch their current account to a cheaper alternative. There are even credit cards that do not charge a usage fee when used overseas, such as the Creation Everyday Credit Card and Halifax Clarity Credit Card. Those customers looking to save on interest charges will also find the Santander Zero Credit Card appealing, as it offers an introductory purchase deal of 0% for 12 months.”

Download an app to save a transport headache

“There are free apps such as Citymapper that list public transport and can help consumers avoid relying on last-minute taxis when travelling. Not only this, but these types of apps allow consumers to plan any sightseeing tour of their choosing, without the expense of a tour package. Transport apps also have the added benefit of allowing holidaymakers to change their plans last minute, due to unpredictable factors like the weather for example, giving them peace of mind that a new route is close to hand.”

Check your travel insurance cover

“Consumers don’t always have to pay for travel insurance, and not all travel insurance policies will cover everything, so it is important to carefully check all the terms and conditions before travelling abroad. There are current accounts that offer worldwide travel insurance cover as an add-on to their package, with Barclays Bank charging £12.50 per month on its Bank Account with Travel Pack and Nationwide charging £13 per month on its FlexPlus, some of the cheapest on the market and they include baggage and delay cover. The latter also includes worldwide mobile phone insurance and UK and European breakdown cover, plus the debit card allows free cash withdrawals abroad too.”

*Typical debit card example is the NatWest Select Account, which charges a transaction fee of 2.00% and a conversion fee of 2.75% on cash withdrawals. Typical credit card example is the HSBC Classic Credit Card Visa, which charges a 2.99% usage fee and a 2.99% cash withdrawal fee.

moneyfacts.co.uk is a financial product price comparison site, launched in 2000, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, there is no commercial influence on the way moneyfacts.co.uk ranks products, showing consumers a true picture of the best products based on the criteria they select. The site also provides informative guides and covers the latest consumer finance news, as well as offering a weekly newsletter.

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.