Six ways to make your pounds go further abroad

UK holidaymakers have been given six top tips to help make their money stretch further when travelling overseas.

Experts from travel specialists MyBaggage.com have revealed ways that Brits can get the most out of their money when jetting off abroad on holiday this year.

In the current climate of economic uncertainty and fluctuating exchange rates, getting the best value on foreign currency is crucial.

It’s possible to get your euros, dollars or other currencies just before travelling or simply use a UK bank card abroad, but a couple of small changes could mean noticeably more money available to spend while overseas.

A spokesperson for My Baggage said: “Brits heading off on holiday in the coming months might be worried about the cost of their trip, given recent headlines about a weakening pound.

“It’s easy to simply accept the costs of converting currency before travelling abroad, but a little bit of research and forward planning could make your sterling stretch much further.

“We’ve offered holidaymakers six travel money top tips, as having a bit of extra cash in your pocket can really help you make the most of your break.”

Here is the MyBaggage.com advice:

1. Shop around for the best deal

Holidaymakers can exchange their pounds for other currencies at a range of banks, supermarkets, specialist high street suppliers and even the post office – there isn’t one single, official exchange rate.

Taking a little time to find the best rate around will leave more cash in your pocket when you travel, whilst pre-ordering your travel money online could help you get better value.

A fractional improvement in the exchange rate might not strike you as significant, but it could work out as a sizeable chunk of cash if you’re exchanging hundreds to last for your entire trip.

2. Avoid airport currency desks

Travel money suppliers in UK airports have no competition when travellers need to exchange their pounds at the very last minute.

There’s nothing to stop them exploiting their captive audience, so British travellers could find themselves getting up to 20 per cent less foreign currency for their money, compared to the high street. 

3. Only use local ATMs as a last resort

Brits who want to make every penny count should bring an adequate amount of the local currency with them before leaving the UK, rather than risk being stuck with the exchange rate in their destination. 

Using your debit card at a foreign cash machine will also usually see you incur a non-sterling transaction fee of around three per cent, with additional ATM fees – of around two per cent or a couple of pounds – much more common overseas than in Britain too. 

4. Consider a pre-paid card

Once loaded from a British bank account, prepaid travel money cards can offer holidaymakers a quick, easy and reliable source of money abroad. They can also help with budgeting and remove the need to carry cash too.

One could take a few days to arrive once ordered online, but then Brits can use it like their normal bank card, having paid a standard currency conversion charge. It’s typically cheaper than other options, with fees usually between one to two per cent.

5. Choose your location wisely 

If you’re planning a last-minute break and not tied to the idea of a typical holiday spots, then trying a more adventurous destination could allow you to exploit the pound’s strength.

Brits heading to Turkey, Bulgaria, Tunisia, Argentina, Iceland and Malaysia will all get significantly more local currency in exchange for their pounds sterling, compared to this time last year.

The cost of living is often lower beyond Brits’ favourite western European destinations too, which can further improve the value for money you get.

6. Sell unused cash 

Don’t go on a spending spree on the final day of your trip just to use up your foreign currency and don’t let those interesting foreign notes and quirky coins gather dust on the kitchen table when you get back from your holiday either.

Most reputable place that sell foreign currency in Britain will also buy it back from you, turning your remaining cash in to pounds sterling once again. 

You don’t have to go back to the same place either, so it’s worth shopping around for the most favourable exchange rate.