How Get More Holiday Money For Your Sterling

I was queuing at the Post Office the other day and the woman in front wanted some Euros. The clerk said 'I can sell you 360 Euros for £300'. I almost fainted.

Two points were wrong with this picture -

1. The cold hard realisation that sterling really is in the dumps (against most currencies)

2. The importance of getting the best exchange rate. The Post Office rate was around 0.83 (versus 0.792 in the cash market at that time), but don't worry it's 'Commission Free'!
   
   

European Holiday Trouble

So what does this all mean for those looking to enjoy themselves this summer when in Europe?

This time last year the Euro/Sterling rate was about 0.68 now it's around 0.79, making a 16% depreciation. Now add in a likely Continental European inflation rate of 8%+ (regardless of what the insulting and pathetic Government figures suggest) and our spending power has probably been reduced by an incredible 25% over just one year.

So what to do? Not much can be done apart from cutting back on the excessive spending but I admit that's not always easy to do when on holiday.

Save Money With The Nationwide

Perhaps a better strategy is to try to squeeze out every penny possible when exchanging our sterling into foreign currencies. One way to do this is to open a bank account with the Nationwide because their ATM card without doubt is one of the best deals in personal finance.

The Nationwide's account is great for travellers and holiday makers because -

1. The bank doesn't charge a ridiculous and frankly scandalous 2%+ levy for withdrawing money from cash point machines, and

2. The Nationwide's rates of Exchange are competitive. So whereas the Post Office Euro/Sterling rate is 0.83 the Nationwide would most probably offer 0.795 (4.5% better) against a cash market of say 0.79

I've had a Nationwide bank account now for several years but only use it for holiday spending. Before I leave I make sure £x is deposited and then use cash points to withdraw the local currency. You don't even need to take a few Euros or Dollars on the plane as every airport has a few ATMs.

Summary

Don't let the banks pick your pockets so easily. Be different to the masses, fight back with simple strategies such as opening and using a Nationwide account for your holiday spending.

One point to note, from what I remember I had to book an appointment to open the account with the Nationwide so call your local branch to check. The opening process was simple though and only took about 15 minutes. Don't forget to take your Passport/driving Licence and a utility bill etc to prove who you are.

• Nationwide's website

Anti Hassle Tip For Your ATM Card When On Holiday

One way that banks cut down on cash point fraud is to block your card if it's used abroad. This makes some sense but not if it's you trying to withdraw $200 in Miami.

Therefore it's always a good idea to call your bank before you leave and tell them you're going to be in X country from the 12th till the 29th. They'll put a note on their computers and it's unlikely your card will be refused.

>> Next Page - Pet Insurance Looks One Of The Better Forms Of Insurance