News
Avoid the foreign currency rip offs
David Black, banking specialist
If you're heading abroad this summer, spare a thought for how you are going to access the local currency before packing your Soltan and designer sunglasses.
Most major banks make significant charges on cash withdrawals made at overseas ATMS, with Halifax, Lloyds TSB, Natwest and RBS being some of the worst offenders. So don't just use your normal bank debit card for such transactions.
Nationwide recently introduced a 0.84% fee on usage of its Flexaccount debit card outside the EU area (and a few other countries such as Turkey), but it remains one of the best options for cash withdrawals from overseas ATMs because there's no foreign exchange loading (typically 2.75%).
For purchases abroad, you are better off using a credit card such as those offered by Nationwide (Gold Visa), the Post Office (Mastercard) and Santander's Zero card.
Don't leave it until you get to the airport as the chances are you will get a poor deal. Also don't be fooled by offers of 'commission free' currency: what you need to watch out for is the exchange rate.
Chequepoint, Thomas Cook, Marks & Spencer and the Post Office have traditionally offered reasonably competitive rates, but it is best to compare rates online at some of the websites list below just before departure.
Travelex online offers competitive rates (unlike its airport bureaux) and if you order by midnight the night before, you can pick up your currency at the airport bureau of your choice.
If you want foreign currency to be delivered to your home, Travelex may be the best deal as there is no delivery charge. The other online providers typically charge a fixed delivery fee of £3 to £8 for orders below a minimum amount of £100-£1,000.
Another option is to obtain a pre-paid currency card denominated in Euros and dollars, such as that offered by FairFX.com. This enables you to benefit from competitive commercial exchange rates which FairFX says it is able to offer because it doesn't have to pay for expensive offices at airports and train stations.
For more information visit:
www.travelex.co.uk/
www.FairFX.com
www.iceplc.com (International Currency Exchange)
