4 tips on keeping currency costs low as the £ plummets
11 July, 2017
The pound is plummeting and your holiday just got pricier.
As Brexit uncertainty continues and the monumental dithering and lack of decisions roll on, the pound is taking a beating. This is financial markets making it very clear what they think about the UK. It’s not a good report. Avoid is the basic message we can read into the markets’ response.
As the pound gets beaten up, this translates into Consumerville via appalling exchange rates. At Heathrow yesterday travellers were offered just €0.93 for their pound. Ouch.
Buying currency at the airport or just using the debit card in your wallet for your hols are all big no-nos which can easily add 10% to the cost of your week in the sun.
Here are a few tips on how to avoid getting stung:
1. Look at an account with a challenger bank. Starling (https://www.starlingbank.com/)and Monzo (https://monzo.com/)both have great apps. Starling charges no non-sterling transaction or cash withdrawal fees when you use their debit card abroad.
2. Revolut (https://www.revolut.com/) is a pre-paid card with awesome exchange rates, no spending fees but free ATM withdrawals are limited to £200 per calendar month.
3. The Halifax Clarity credit card (https://www.halifax.co.uk/creditcards/clarity-card/) offers no fees on overseas spending, though ATM withdrawals will incur interest even if you pay off the card in full. But this only stacks up if you don't repay in full every month or there are high interest rates to pay.
4. Finally, cash is still an OK choice! The Post Office online bureau (https://www.postoffice.co.uk/foreign-currency) is reliable, delivers to your home and as at today was offering €550 for £505.
Read next: The rate rise cometh...so now what? (https://www.boringmoney.co.uk/learn/articles/the-rate-rise-cometh-so-now-what/)