Guide to Travel Money and Foreign Exchange – 2/6

It seems there is a host of potential places to change your travel money… so which one should you choose?

Where to go to for foreign exchange

As we discussed in part two, don't always be persuaded by 'commission free' offers. Furthermore, you also shouldn't feel any loyalty towards your own bank, as they will very often charge the same rates to you as to general members of the public. The best thing to do is to take a full overview of the market - and try to do it in plenty of time so you can make the most of varying exchange rates.

Banks will occasionally offer preferential rates or commission free deals and building societies also regularly offer commission free deals. However, this does not necessarily make them the cheapest and there are a number of alternatives that are worthy of consideration such as bureau de change, travel agents and the Post Office.

Another factor to consider is whether the foreign currency provider will deliver to your home address. In most cases you are likely to pay for this service so make sure you shop around for the best deal.

Traveller’s cheques – a safer alternative?

The main problem with cash is that it's easy to lose or have stolen. That’s why the travellers cheque emerged as an alternative and one of the most secure ways of carrying your money abroad.

Travellers cheques are bought in the UK and as soon as you receive the travellers cheque you MUST sign each one. This is so that when you come to change a travellers cheque for local currency you can present the cheque, enter the payee and sign in front of a cashier – the idea is that the signature you make is proof you are the person who bought the cheque.

The main benefit of travellers cheques is that if the cheques are lost or stolen you can report this (as long as you have the cheque numbers) and receive a replacement immediately.

In part three we'll look at travellers cheques in more detail and who they are right for.