| |
Before
the information a plug. We can help you buy foreign currency and travellers
cheques online with free delivery and 0% commission.
In association with
1st Holiday Store.co.uk we've managed to negotiate 0% commission on currency
and travellers cheques plus free delivery if you order your currency online
and pay via a debit card with Onlinefx.
Order by 2 p.m. and
your currency can be delivered to your home or work before 5.30 p.m. the
next day. Click
here to check their rates.
(If paying with Switch,
Delta and Solo cards, just type "free delivery" in the Promotion
/ ID box at payment stage.)
Unravelling
the mystery of foreign currency charges
Research by the Post Office late last year found that more than half of
all holidaymakers were confused by the various charges they pay when buying
foreign currency. Most people buy from their bank or at the airport. But
by shopping around you can save as much as £25 on £1,000 worth
of spending money. Read on as we untangle the mess and clear up the confusion.
Banks, building societies,
travel agents and foreign exchange bureaux usually charge commission of
1 - 2% on currency purchases (notes), with minimum charges or a flat fee
of between £2 and £3.50. On top of this they will usually
charge an additional commission or flat fee on any travellers cheques
you buy.
There is also some
confusion over 'buy' and 'sell' rates. You will typically see four rates
of exchange quoted - two for foreign currency (cash) and two for travellers
cheques. Ignore the terminology. Banks will sell you currency or cheques
at the lower rate, and buy them back at the higher rate. So, for example,
if a bank is quoting $1.50 and $1.54 to £1 it will sell you $150
for £100, and it will give you £97.40 for $150. Other than
commission, this is how banks make money from foreign currency.
The
best places to buy your foreign currency
You can buy your currency online via a number of foreign exchange companies.
Each time we check the rates, including commission and delivery charges,
we find that Onlinefx,
Travelex
and the
Post Office
are the most competitive.
As mentioned above,
we've negotiated 0% commission and free delivery if you pay via a debit
card with Onlinefx.
Order by 2 p.m. and your currency can be delivered to your home or work
before 5.30 p.m. the next day.
Travelex
need 48 hours notice, but you can collect your currency from the airport.
The Post
Office
also delivers, or you can pick your currency up at your local Post Office.
The
foreign currency checklist - how to get the best foreign currency deal
- 'Commission free
foreign currency' usually means commission free foreign cash. You will
still be charged commission on travellers' cheques.
- Don't leave buying
your currency until you get to the airport. You won't get the best rate,
you will pay commission, and they may not have the amount you want.
- Shop around and
do your sums. For the amount you plan to buy, is it cheaper for you
to pay commission with a low minimum charge or a flat fee?
- Check the rate
of exchange too. Some 'commission free' offers have a poor exchange
rate. It might be cheaper to pay commission.
- The Post Office
don't charge commission on foreign currency purchases for 30 major foreign
currencies. For smaller currency purchases this can represent a saving,
but for larger currency purchases make sure you check the exchange rate
against other providers. Also, although foreign currency travellers
cheques are commission free, the Post Office (and most other 'commission
free' outlets) do charge commission on sterling travellers cheques.
- Consider buying
online. Most online companies do not charge commission and will deliver
to your home, your work, or you can collect you currency at the airport.
- A less obvious
place to consider is Marks & Spencer. Many of their larger stores
have a Bureau de Change offering currency and travellers cheques, and
their rates are amongst the most competitive.
- Minimum charges
make it expensive to exchange small amounts. If you are travelling with
a group you might want to make one combined currency purchase, rather
than everybody buying their currency individually.
- Don't forget that
you can draw cash abroad on most credit and debit cards using your normal
pin number. The ATMs will recognise that your card is 'foreign' and
offer you instructions in English. But note: your card issuer may charge
a transaction fee of between 1.5 - 2%, a 'currency loading fee' (they
adjust the rate downwards, by between 0.5% and 2.75% depending on the
bank) and on credit cards you may be charged interest. However, it's
still the most convenient way of getting your holiday money
- Don't be persuaded
to take more currency than you need on the strength of 'commission free
buy back' offers. Although you won't be charged commission, the currency
will be bought back at a lower rate, so you will still lose out, typically
by between 2 - 5%.
|
