If you are tired of paying the huge fees that have become standard when exchanging money prior to a holiday, you aren't alone! More and more people are standing up and questioning why they should have to pay those high commissions just to exchange money that is already theirs for currency of another country. This is why it is now advised that you compare exchange rates for your travel money well in advance of a holiday.
Exchanging Last Minute
If you are accustomed to exchanging your money just before leaving home or at the airport once you have arrived for your holiday, you are probably paying the most outrageous fees out there. Since you are in a hurry, you aren't likely to compare exchange rates and companies that deal with last minute exchanges know this!
They know you aren't in the frame of mind to be questioning their exchange rates, if you are even paying attention at all. As a result, rates in airports and banks or other exchange businesses near the airport tend to have higher rates.
People who take the time to start shopping around for the best rates in advance of their holiday are the ones who end up paying much less. This only makes sense because it will free up more money to actually be spent on holiday!
Comparing Rates Online
One option to compare exchange rates in advance is to go online. You can now access virtually anything you want with a few keywords and the click of a mouse, so why not try to find the most competitive currency exchange rates online? This is actually the best way to start, but you have to watch out that the sites you use are trustworthy.
For starters, ignore any random emails you receive asking you to click a link and compare exchange rates. Many of these sites are set up for phishing, which means they are there to collect your personal information rather than to actually exchange your money.
Another word of caution is to avoid exchange websites offering "commission free money," as there is really no such thing as legitimate exchanges without any form of commission. The trick here is that they offer you a higher exchange rate while waiving the typical "commission fee." You are still paying the fee, but it is deceptively hidden in the exchange rate.
If you compare exchange rates from one site to another you will catch these little scams!
Prepaid Options
You never know exactly how much currency you are going to need when you go on holiday, so the new options of purchasing prepaid currency cards are probably going to be your best deal. You can still compare exchange rates prior to leaving for your holiday, but you will be able to purchase your currency and have it placed on a convenient, completely safe Mastercard or Visa which can be used around the world just like any other credit card.
What is so beneficial here is the ability to compare exchange rates prior to purchasing your currency and then have a safer way of carrying your money around once you leave for holiday. While you may still want some local notes on hand while on holiday, the bulk of your travel money should be secured on a prepaid card where the fees are noted upfront at the time you place currency on the card.
Monday 29 March 2010, 03:32pm
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