Plan Ahead to Take Full Advantage of Strong Currency Rates Before Heading Off Abroad
CHESTER, England, May 17, 2012 /PRNewswire/ --
- Four in ten Brits only buy their foreign currency in the week of travel
- Two thirds fail to find the best exchange rate possible
- Euro exchange rates stay strong, up from this time last year
Brits planning to head into Europe or further afield this summer can cash in by taking advantage of a strengthening pound against a number of foreign currencies giving them more money to spend abroad, according to analysis from MoneySupermarket.com.
The UK's number one comparison site looked at exchange rates** for buying Euros to load a pre-paid foreign currency card or for calculating purchases on a credit card and found holidaymakers are currently saving up to an extra £80 per €1,000 compared to the same time last year. For example, someone with a Travelex pre-paid card this time last year would have received an exchange rate of 1.1115 compared to 1.218 today, meaning an extra £78.67 for their holiday cash, while those using a credit card for €1,000 of purchases abroad would be £77.99 better off.
However, Brits are failing to take advantage of buying their foreign currency early, with only one in ten people polled in a recent MoneySupermarket site survey buying their currency at least a month before they go on holiday. Four in ten buy their currency in the week of travel. However, almost a third (29 per cent) try to time it to get the best possible exchange rate while one in six (16 per cent) sort their money when abroad, of this, nine per cent withdraw their cash from an ATM machine when they arrive and seven per cent buy their money when on their holiday.
Bob Atkinson, travel expert at MoneySupermarket.com said: "Leaving it to the last minute to sort your travel currency is madness and will generally cost you more. Planning ahead and buying currency online or applying for one of the market leading pre-paid, debit or credit cards which are designed for use abroad can help you really make the most of your money. With sterling currently performing strongly against many foreign currencies, including the Euro, if you have spare cash, now is a great time to take advantage of these rates and give yourself more bang for your buck when travelling abroad. There are no guarantees that the rate won't improve further or even come crashing down as rates have done in the past, so it is a gamble. However, for those who don't want to take the risk, buying some Euro's now and the rest closer to your trip could be beneficial.
"If you are planning to use cards abroad, then a pre-paid card offers a favourable exchange rate and many come with no foreign usage fees, both for purchases and for cash at an ATM. However, it is also worth double checking your existing debit or credit card to understand what charges are made for using them abroad. The majority of credit cards charge interest for withdrawing cash at an ATM, and have loading fees for over the counter purchases, but you should always check before heading abroad. If you are planning to take out a card specifically to use abroad, plan ahead and don't leave it until the last minute as you have to allow at least ten working days to receive the card from the date of application.
"Remember if you are travelling abroad this summer, be savvy; plan ahead; shop around; buy currency online, and work out how much €1,000 will cost you before you buy. That way you can use those savings to treat yourself while away or simply make your money go further."
Notes to editors:
*MoneySupermarket webpoll
When do you usually buy your travel money?
- Once I am on holiday: 7.3%
- The day I travel: 1.5%
- The day before I travel: 4.5%
- A week before I go away: 38.7%
- At least a month before I travel: 7.9%
- I buy all of my travel money for the year in one go: 1.3%
- I try to time it to get the best possible exchange rate: 30.1%
- I withdraw it from an ATM when I arrive: 8.7%
Poll ran from 11th to 16th May 2012, total respondents: 2,046
**Comparison of year on year pre-paid and credit card Euro and USD rates
Travelex:
Euros
Today - 1.218
Last year - 1.1115
You are now better off by £78.67 compared to this time last year.
Dollars
Today - 1.5610
Last year - 1.5855
You are worse off by £9.90 compared to this time last year
Visa:
Euros
Today - 1.256001
Last year - 1.144513
You are better off by £77.56 compared to this time last year
Dollars
Today - 1.612200
Last year - 1.624569
You are worse off by £4.72 compared to this time last year
MasterCard
Euros
Today - 1.256743
Last year - 1.144553
You are better off by £77.99 compared to this time last year
Dollars
Today - 1.611900
Last year - 1.625099
You are worse off by £5.04 compared to this time last year
Rates conducted from 9am to 10am on 15th May 2012
Travel Money - Based on transactions carried out in Europe
Sourced by: http://www.MoneySupermarket.com 15.05.2012 between 9am and 10am
Pre-Paid Card - Based on 5 withdrawals- Euros
Application Total Sterling Exchange
Provider Fee ATM Fee Fees Cost Rate Euros
CaxtonFX GBP0 GBP0.00 GBP0.00 GBP818.33 1.2220 EUR 1,000
FairFX GBP0 GBP1.00 GBP5.00 GBP819.00 1.2285 EUR 1,000
Travelex
Cash
Passport GBP0 GBP0.00 GBP0.00 GBP821.02 1.2180 EUR 1,000
Pre-Paid Card - Based on 5 purchases- Euros
Application Sterling Exchange
Provider Fee Total Fees Cost Rate Euros
FairFX GBP0 GBP0 GBP814.00 1.2285 EUR 1,000
CaxtonFX GBP0 GBP0 GBP818.33 1.2220 EUR 1,000
Travelex
Cash Passport GBP0 GBP0 GBP821.02 1.2180 EUR 1,000
Credit Card - Based on 5 purchases- Euros
Transaction Sterling Exchange
Provider Fee Fees Cost Rate Euros
Halifax
Clarity
Card 0.00% GBP0.00 GBP795.71 1.256743 EUR 1,000
Sainsbury's
Finance
Gold Credit
Card 0.00% GBP5.00 GBP800.71 1.256743 EUR 1,000
Thomas Cook
Credit Card 2.50% GBP19.90 GBP816.08 1.256001 EUR 1,000
Barclaycard
Platinum 2.75% GBP22.44 GBP819.41 1.256001 EUR 1,001
Credit Card - Based on 5 purchases- Euros
Transaction Sterling Exchange
Provider Fee Fees Cost Rate Dollars
Halifax
Clarity
Card 0.00% GBP0.00 GBP620.39 1.611900 $1,000
Sainsbury's
Finance
Gold Credit
Card 0.00% GBP5.00 GBP625.39 1.611900 $1,000
Thomas Cook
Credit Card 2.50% GBP15.51 GBP635.78 1.612200 $1,000
Barclaycard
Platinum 2.75% GBP17.06 GBP637.33 1.612200 $1,000
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