If you are set to journey to a warmer climate this year, then the thought of currency will be high on your agenda. Saying this, many of us take the topic for granted, choosing to exchange our Pounds at the very last minute, often resulting in us paying inflated foreign exchange rates. Taking the time to ensure that you get the best deals and use effective methods of changing your currency will make for a better break away.
One of the most popular ways of changing your Sterling is to use a Bureau De Change. There are many of these around including at the Post Office, banks and building societies. There are however, several disadvantages to changing GBP into the currency you need at these establishments. For starters, you may be paying over the odds in the form of handling fees or minimum charges, not to mention commission for actually processing the foreign exchange transaction for you.
It is also riskier carrying cash with you when you are abroad. No country is perfect and there are high chances of your money stolen. It is also much easier to lose cash than any other form of tender. It is possible to take out travel insurance which will insure your cash but these policies usually only cover a certain amount. Should you lose more money than is insured, then that cash is gone for good and cannot be replaced.
Travellers cheques are another option available. Instead of cash, these are paper cheques that are valued to a certain amount of the currency. Again, these are easily lost or stolen and you have to sign them as soon as you receive them. If travellers cheques do go missing, you can only get replacements if you have kept a note of the cheque numbers (if you do not have them you cannot get a replacement). A huge disadvantage of travellers cheques is that the commission and handling fees for this type of currency is usually higher than any other.
The mentioned options in conjunction with credit cards (which are associated with higher charges and theft of your identity) can be risky; an easier, safer option to choose is a prepaid currency card. Not only will you get great foreign exchange rates with this card, it is becoming increasingly popular due to the fact that it is a safer alternative to the other options.
The premise of a prepaid currency card is that you load it with the funds as and when you need it. You may need to deposit a certain initial amount but after this you can add to it as and when you want. Many of the card providers allow you to transfer funds from your bank account to a prepaid card by either phone, internet or text. Some even allow other people to top up your card for you.
As well as getting lower foreign exchange rates with this option as opposed to credit cards, cash or travellers cheques, a prepaid card is a great way of keeping a close eye on your spending. Although it still lives in your purse or wallet, the prepaid currency card still offers as much protection should something go wrong, in the same way a credit or debit card does. Just think, if it is lost or stolen and you have only out a little amount on it, this is better than having a huge amount of funds on a card which has been wiped out completely. The main advantage of this card as well as the safety features is that you will get more to spend on your trip by using this type of card, ensuring that you have a stress-free and wonderful time!
Before you go off to get a prepaid mastercard, go compare currency cards here to make sure you will get the best price.
