TAKING A POUNDING

Holidaymakers being offered less than €1 for £1 at airport money exchanges

HOLIDAYMAKERS getting travel money at the airport are being offered dismal exchange rates where £1 won't even buy them €1 or US$1.

At Gatwick's north terminal this morning, MoneySavingExpert.com spotted Moneycorp's bureaux de change offering flyers a meagre €0.89 and $0.9885 for their pound.

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Of course, a safer way to spend abroad is to use a specialist overseas credit card with no fees. We've rounded-up the top cards here.

What are my other options for spending abroad?

THERE are several specialist cards that can give you a great exchange rate.

These cards include travel credit cards and pre-paid cards which can let you pay abroad without fees or at a set exchange rate.

Travel credit cards: Travel credit cards allow you to spend money abroad without being hit by any fees or hidden charges.

But, they may still charge you for taking cash out.

We recommend the as it won't charge you for using it abroad, nor are there any fees for withdrawing cash.

But you will be charged interest if you don't repay your balance in full at a rate of 19.9 per cent.

And you will be charged interest on cash withdrawals until your balance is paid off too, at a rate of between 19.9 and 27.9 per cent depending on your credit score.

In other words, just because you are using plastic abroad doesn't mean you don't have to pay these credit cards off like you normally would.

Always pay off your balance before the end of the month with these cards to make sure that any money you saved isn't wiped away by paying interest.

For more on travel credit cards you can read our guide here.

Pre-paid cards: An alternative to carrying cash around is to get a pre-paid card.

These cards allow you to put a set amount of cash on the card at a fixed exchange rate.

So if the rate is good at the moment, you can put money on your card and it will stay that rate when you are on holiday.

Just keep in mind that these cards can sometimes have hidden costs and charges so be sure to read the small print.

Pauline Maguire, head of retail at Moneycorp explains that airport rates are higher because of the extra costs to have a shop there.

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He said: "The reason for our higher airport rates are the significant extra costs associated with operating there – from ground rent and additional security, to the cost of staffing the bureaux for customers on early and late flights.

"But we can promise that we work hard to offer rates that are competitive against our peers and vary only by the exchange rate and the higher costs of offering this service from a particular location.

"An easy and more cost-effective way for customers to buy travel money is to pre-order online and collect at the airport."

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The pound neared a ten-year low against the euro earlier this month when it dropped to €1.0724.

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Prior to this, it had been as high as €1.44 in July 2015 but has been tumbling ever since.

The dollar, meanwhile is down from highs of $1.715 last seen in July 2014.

UK weather forecast – August Bank Holiday heatwave increases your chance of a breakdown due to predicted record breaking temperatures


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