SHOULD YOU BUY HOLIDAY CASH TODAY?

ONE reason so many people use travel money cards is that you can lock in the exchange rate on the day you load money on the card. That means you can pick a date in the run-up to going on holiday when the pound is up against the euro or U.S. dollar, and keep that rate.

Although the pound has slumped since the general election, it could fall further if Theresa May’s new government starts to unravel.

So should you lock into a top rate today?

Justin Urquhart Stewart, of Seven Investment Management, says: ‘If you are going away over the next few weeks, I would lock in maybe half of it now so you have some certainty.

‘ There is a reasonable chance that, if it looks like we are moving towards a softer Brexit, the pound could strengthen so £1 buys $1.40 up from $1.27 and £1 buys €1.21 up from €1.14.

‘But it would be unwise to bet on the price going one way, so buying part of your travel money now and part later means even if it all goes horribly wrong, you have secured yourself at least one free cocktail.’