Euro rates drop to 90 cents for £1: how to get the most for your hol­i­day money

The Daily Telegraph - Your Money - - YOUR MONEY - Amelia Mur­ray

Fears over Brexit have sent the pound tum­bling to an eightyear low, giv­ing hol­i­day­mak­ers the worst cur­rency rates since the fi­nan­cial cri­sis.

This week cur­rency exchange kiosks were re­ported to have been of­fer­ing less than €0.90 for ev­ery £1. Those who bought travel money just be­fore board­ing their flight were get­ting just €0.87 at some air­ports.

Air­ports are no­to­ri­ously poor value, par­tic­u­larly at times of cur­rency volatil­ity. This is be­cause the kiosks build in a large safety mar­gin in case rates go against them.

There are a num­ber of ways to get far bet­ter rates. For ex­am­ple, Trav­elex is cur­rently of­fer­ing the best rate of €1.06. For £500 you can get €531 and de­liv­ery is free if you or­der in ad­vance.

If you’re not trav­el­ling for a while but want to hedge your bets to en­sure you don’t get caught out if the rate moves sig­nif­i­cantly against you, you can use “buy-back guar­an­tees” and other tricks. If you are happy to take a gam­ble you can also wait and see what hap­pens, ac­cept­ing that no one can say with any con­fi­dence what is com­ing next.

If you want to pay cash, small lo­cal out­lets tend to of­fer the best rates in ar­eas where com­pe­ti­tion is fierce, such as cen­tral Lon­don and other ma­jor cities.

The con­sumer web­site MoneySav­ingEx­ has an on­line tool called Trav­elMoneyMax that sifts through the rates of­fered by on­line bu­reaus, tak­ing your lo­ca­tion into ac­count. Un­like larger ri­vals, there is of­ten no dis­crep­ancy in the rate for cash or­dered on­line or picked up in per­son. It is worth check­ing to see how con­ve­nient it will be to pick up your cash, as there may be queues at pop­u­lar lo­ca­tions.

Those who don’t live in an area where providers com­pete vig­or­ously can still im­prove the rate they get by or­der­ing in ad­vance from a larger bu­reau. Most bu­reaus of­fer pref­er­en­tial rates if you pre-or­der or print out a voucher to se­cure the on­line rate, rather than walk­ing through the door.

Some cur­rency firms will of­fer to post cash to you if you or­der on­line; you can ex­pect to pay £5 for orders un­der £500. Or­der more and de­liv­ery is usu­ally free. If you use a credit card to pur­chase the cash you will be pro­tected un­der Sec­tion 75 of the Con­sumer Credit Act if some­thing goes wrong. If you use a debit card you may be pro­tected un­der the “charge­back” scheme.

Those head­ing abroad this sum­mer will find their hol­i­day money has taken a hit

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