DON’T GET STUNG BY THE BANKS If you have gone to the trouble of seeking out a holiday destination where your money stretches further, don’t blow your efforts on paying more than you need to in bank charges while you are away. Moneysavingexpert. com says the wrong choice of plastic can leave a holiday maker spending £1,000 up to £90 worse off. Most debit cards levy a conversion charge, usually 2.75 per cent, plus an ATM withdrawal charge, typically between £1.50 and £5. Most credit card providers add a foreign-usage “loading” on purchases of up to 2.75 per cent. For the first time this summer, people will see the true cost of using their plastic abroad following new rules that came into effect at the start of the year. Known as “currency loading”, the fees that most card providers used to hide within the exchange rate must now be shown separately in statements. The cheapest way to pay for your holiday spending is to use a card that doesn’t charge for use abroad. There are no fees for using Halifax’s Clarity card overseas. Saga and Post Office also offer fee-free cards. When using any card, you may be given the option of paying a bill in the local currency or in sterling. But
US dollar In June the pound rose above the $1.70 mark to reach a level not seen since October 2008, although it has slipped back slightly since then. Anyone changing £500 today would be around $91 (£54) better off than they would have been this time last year, according to Travelex. It is worth bearing in mind that there are other countries that rely on the US dollar, including Barbados and Jamaica. Shopping in the US is ever popular. Beth Higham in the Virgin Holidays Press Office says: “With the dollar currently strong against the pound, now is a great time to travel to the US for a shopping break to kit out your summer wardrobe. While New York is an old favourite with shopaholics, Boston is a great alternative for second-time visitors.” Florida is a popular destination for families. The good news is that America is the cheapest place to hire a car,
many often convert your bill automatically into sterling at their own uncompetitive conversion rate, plus commission of up to 4 per cent. The golden rule is to always ask to be charged in the local currency. You can also get a pre-paid currency card at competitive rates of exchange, allowing you to lock in to a rate when it is favourable – without keeping piles of cash in the house. These cards use chip and pin like any debit or credit card and you can top up online at home and abroad. The charges and fees can vary significantly – Moneysupermarket.com says Caxton FX offers the best rates on both euro and dollar cards. Don’t forget to buy currency before you leave. Foreignexchange desks at airports tend to offer the poorest value, so plan ahead and order cash online from specialists such as FairFX, Caxton FX, Travelex or the Post Office.
according to iCarhireinsurance.com. More specifically, it is in Orlando, Florida where you will pay the least, at just £164 for a week. While now is certainly a great time to visit the US, you may also like to look to the Caribbean or Dubai. Many currencies – including the Barbadian dollar, the east Caribbean dollar, the Hong Kong dollar and the United Emirati dirham – are all pegged to the US dollar.
Euro The pound is 8 per cent stronger against the euro compared with rates last July, meaning an extra €46, or £37, in your pocket for every £500 exchanged. Portugal and Italy are the most expensive places to hire a car, according to the study, so make sure you shop around for the best value you can find using comparison websites such as travelsupermarket.com, kayak.co.uk and carhiresearch.co.uk.
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