Strike while the pound’s hot! How to get the best deals on travel money

If you’re heading abroad soon, now could be a good time to get your holiday money in place.  

The right exchange rate can make a big difference to your spending budget.   

Here’s how to bag the best deals on travel money.  

Take advantage of a strong pound  

The pound just hit a 43-month high against the US dollar, which is good news if you’re travelling.  

A stronger pound means: 

• you’ll get more foreign currency for your money 

• your holiday cash will go further 

But be aware, exchange rates go up and down. If the rate looks good now, it might be worth locking it in, but there’s always a chance it could improve or drop. 

Shop around for the best rate 

Exchange rates and fees vary a lot, so always compare before buying. 

You should check: 

• the exchange rate 

• any commission or delivery fees 

• total cost after fees 

Good comparison sites are:   

MoneySuperMarket 

MoneySavingExpert 

CompareHolidayMoney 

Don’t use a credit card for travel money 

Using a credit card to buy currency isn’t a good idea. It’s usually treated as a cash withdrawal, meaning fees are attached.  

Use a debit card or cash instead. 

Try a pre-paid travel card 

Pre-paid cards let you load money at a fixed exchange rate. Once loaded, your rate stays the same, even if the market changes. 

Why it’s useful: 

• it helps you stick to a budget 

• it's safer than carrying cash 

• some cards let you load multiple currencies 

But these cards can come with charges and hidden costs, so it’s important to always read the small print. 

Again, shop around on sites like Money.co.uk to find the pre-paid card offering the best rates with the lowest fees.  

Know your debit card terms 

Some debit cards are great for spending abroad, others come with hidden charges. 

Before you travel: 

• check your bank’s fees for overseas use 

• make sure your card works abroad 

Avoid airport exchanges 

Changing money at the airport is usually the worst deal, with high fees and often bad rates.