If you are planning on going abroad for a holiday this year, you may not have thought too much about your currency options yet. It is however an important consideration as failing to choose the best currency rate may leave you significantly out of pocket. We shall explore some of the options available and help you decide what is likely to be best for you.
The most obvious starting point is cash, the main benefit of which is that it will be accepted in every store or restaurant you visit. It is unfortunately the most expensive option as well as the least secure. A high level of commission is normally charged when purchasing cash, and if a local thief gets their hands on it then it is gone forever with no recompense.
The travellers cheque, while nowhere near as common as it once was, is still available as a method of currency exchange and may appeal to the more security conscious as lost or stolen cheques are easily replaceable by the issuer. While they do have low fees, they are very troublesome and inconvenient to use as retailers hardly ever accept them these days. The only way to exchange them for cash is to queue up at the bank, and this is certainly not what most people want to be doing on their hard earned vacation.
The most common currency exchange option now is the credit card, and indeed it does have several advantages. Convenience is the main benefit as the card is small and easy to carry, and it is accepted at the great majority of retail outlets. The issuer will also offer protection against loss or theft so it is also a secure option. The down side is that fees are often excessive, and because credit is afforded, it is all too easy to overspend and have repayments souring the memory of an otherwise enjoyable holiday.
The debit card is very similar to the credit card. Benefits offered are almost identical save for the credit facility, but higher withdrawal charges and slightly less acceptability make the debit card a less appealing option.
By far the best all round option is the prepaid currency card. They have all the benefits of security and convenience offered by credit and debit cards, but generally have lower fees and also give a better exchange rate than cash. Another real benefit is that because you can load the card with a fixed amount of money before you leave, you can guarantee that you will not be tempted to overspend.
Of all options, it is clear that the prepaid currency card is best when deciding upon the best currency rate. Other options may be used as a back up, but by using the prepaid card you will be able to relax and enjoy your holiday knowing that you will not be paying over the odds.
Personally, my advice would be make sure that you havent left without a prepaid mastercard. They give you the best exchange rates by far, and I really like their security features as well.