How to make the most of your travel money this summer

Nothing ruins that first sip of sangria or sunset stroll quite like checking your bank balance and realising your holiday spending has been hit with unexpected fees. But with a bit of prep, you can stretch your travel money further and avoid getting stung abroad.

Here are six smart tips to help your holiday cash go the distance.

💳 1. Pack a fee-free card

Not all cards are created equal when it comes to holiday spending. Some banks slap on foreign transaction fees, meaning you could end up paying £8.15 for a £5 withdrawal. Before you go, check if your bank charges overseas fees. If they do, consider applying for a travel-friendly, fee-free card. There are lots of free options out there that could save you a bundle.

🛫 2. Avoid changing money at the airport

The airport might be convenient, but it’s almost always the worst place to exchange money. If you’ve left it last minute, you’ll likely get poor rates and higher commission fees. To get more bang for your buck, shop around in advance - online comparison sites and high-street bureaus can offer far better deals.

🌍 3. Be careful with currency swaps

If you’re in the UK and need to switch from one foreign currency to another (e.g. euros to dollars), try not to do it at home. You could be hit with two sets of fees - one to convert your money into pounds, and another to convert it into the new currency. Where possible, wait until you’re in the destination country and exchange your money there instead.

💶 4. Always pay in the local currency

When paying by card or withdrawing cash overseas, you’ll often be given a choice: pay in pounds, or the local currency. Always choose local. Why? Because selecting pounds means the retailer or ATM does the conversion, and often at a poor rate with hidden charges thrown in. Let your bank or card provider handle the conversion for a better deal.

📱 5. Set up your phone wallet properly

Planning to use Apple or Google Pay abroad? Double-check which card you’ve set as your default. You don’t want to get home and realise you’ve been using the wrong card the whole time, racking up avoidable fees without noticing. A 30-second check in your phone’s wallet settings could save you a real headache later.

🧾 6. Spend strategically

If your card charges a flat fee per transaction, it’s best to avoid lots of little purchases. Instead, withdraw a larger amount of cash in one go and set a daily spending limit. This way, you’ll reduce the amount you pay in fees and make it easier to stick to a holiday budget.