Getting the most from your holiday money

THE result was far from expected. And as it became more and more clear Theresa May’s gamble in calling the vote was failing the the pound crashed. Just not for long.

The pound fell by more than 1.5% to 1.27 US dollars and more than 1% to 1.13 euros in trading in the wake of the exit poll that first suggested a hung Parliament.

But it had soon stabilised, rising to €1.14 and $1.28 by the time a hung Parliament was confirmed.

The uncertainty formed by this election result is not causing market panic, even though who governs the UK now hangs in the balance.

What does it mean for you? In the short term little has changed since the day before the election.

For people looking to buy holiday money this is how to get the best deal you can on holiday cash:

Opt for more than one payment method

“The best thing is to buy when you feel comfortable to do so, and follow rules to make sure you get the most for your cash,” explained Emma Coulthurst at TravelSupermarket .

“Carry a market-leading credit or debit card for use overseas, a pre-paid card and also some cash. Don’t rely on just one form of payment.

“Compare online to get the best rates – find the place where you have to hand over as little sterling in exchange as possible.”

“Make sure you get credit and debit cards that are specifically designed for overseas usage with minimal (if any) charges,” Coulthurst said.

Metrobank, Norwich & Peterborough and Nationwide all offer accounts with debit cards that don’t charge for use in some countries.

Halifax, Saga and Nationwide are amongst a handful of providers who offer credit cards with no fees for spending abroad.

Purchase a buyback guarantee

Whether you choose to exchange today or nearer the time to your holiday, a ‘buyback guarantee’ will cover you should the rates fall even further, while you’re away.

This gives you the option to return any remaining currency back into sterling, at the same rate you initially paid for.

Ask for this at the checkout before exchanging your money. You may have to pay more for the service, but, it means if the currency worsens while you’re abroad, you won’t lose out any more.

Set up a tracker – and cash in on the spike

If it’s the risk factor that’s worrying you, keep an eye on rates in the run up to your holiday, and when the pound does start to improve (even just slightly) cash in on it.

Order your currency online, and you’ll also be able to reverse this decision if the rate gets even better in the run up to your holiday (more on this later).

Don’t buy currency at the airport

The worst decision you can possibly make is to trade your money the airport.

That’s because airport concessions offer some of the highest rates around – and you could end up flushing half of your holiday savings down the drain.

If you have left it to the last minute, you can buy online the day before and pick up cash at the airport if needed.

The rates might not be the best available, but it will be a lot better than if you just turn up. You CAN change your mind Firms such as Travelex ad Tesco Money offer you the option to reserve a rate – for up to 30-days when you order online.

This means you can buy your currency now for collection after the election results are announced.

If the value of the pound improves, you can cancel the order – for free – to get your money back and buy again when the rate is more favourable down the line.

If the pound drops, you can collect your currency at the exchange rate that you locked in when you made your order.

If you are cancelling, be sure to double check any fees before exchanging anything.