Don’t get ripped off with your holiday money this half term

MANY families departing for an overseas halfterm holiday over the coming days will face a last-minute dash for cash – but can still avoid ripoff airport currency exchange rates or poor deals from banks.

Norris Koppel, of international current account provider Monese, says: ‘ Currency fluctuations as seen in recent days due to political events can wreak havoc with holiday money. But so can hidden bank fees and poor exchange rates.’

Holidaymakers should first check whether their credit and debit cards can be used abroad for spending and withdrawing money from ATMs without extra charges.

Nationwide Building Society FlexPlus customers can use their debit cards to spend and withdraw cash fee-free while abroad. The same goes for customers of Cumberland Building Society’s Plus account and those of online account providers such as Monese, Monzo, Revolut, Starling and Transferwise.

Metro Bank customers can also use t heir debit cards without charge in most European countries. All have better than average currency conversion rates.

Customers with credit cards such as Tandem, Halifax Clarity, Aqua Reward and Santander Zero can also rely on their plastic while abroad.

Failing that, if a prepaid travel card is left over from a previous holiday, then top it up – it is likely to offer decent exchange rates and low or no fees for use.

Prepaid currency cards can be snapped up instantly from convenient locations. The cards are separate from a bank account, can be topped up online, and the good ones can be used fee-free abroad. Larger Sainsbury’s and Asda stores that have foreign exchange bureaux sell such cards.

Travelex cards can also be picked up in person. Most of its stores are located at airports but once collected, the cards can be activated and registered over the internet – and money transferred on to them from a bank account at preferential online rates.

The Post Office also sells prepaid cards – but fees apply for cashpoint withdrawals on the Continent.

PAY ONLINE AND COLLECT IN PERSON

THE primary goal for cash in hand currency is to beat airport rip-offs which many customers succumb to in a rush.

Andrew Hagger, of financial research company Money Comms, says: ‘Plenty of providers offer a next-day currency delivery service which is free depending on how much you order.’

Sainsbury’s, Tesco, Asda and Debenhams all offer this for orders over £500.

‘The other option is to drop in to your local supermarket,’ adds Hagger. ‘Many larger stores have a bureau and keep the main currencies in stock. Just remember to take photo ID with you when you go.’

It is always worth buying online – even if collecting currency in person. This remains the case when departure is just hours away.

With Travelex, you can pick up euros, US dollars and prepaid cards from an airport branch just four hours after ordering online. Waiting until you get to the airport guarantees the worst rates because companies know you have no other options left. Peter Rudin-Burgess, of website Compare Holiday Money, says: ‘ Most people are unaware that many big-name currency suppliers operate a two-tier system.

‘So, if you walk into a post office to buy travel money you will get a worse rate than if you had ordered the currency on the Post Office website and then walked into the same branch to collect it.’

Consumer website TravelMoneyMax.com shows the best local rates.

Compar eHoliday Money also has an interactive map of all the places where customers can order online and collect in person – covering supermarkets, department stores and chains as well as specialists.

Anyone with time on their side can compare the best rates on cash in advance. They also have the opportunity to apply for the best credit or prepaid cards – which can take up to two weeks to arrive.

Other prepaid cards worth considering include WeSwap, Caxton FX, Fair FX and ICE Clear.