Getting the best Euro exchange rate ensures you get more money when exchanging pounds to Euros, meaning you have more cash to spend on your next holiday. With a little planning, you can take several steps to make sure you get the best deal and don’t lose out on money.
The exchange rate was pretty good back in 2004 to mid-2007, but the economic recession meant that the pound to euro exchange took a bit of a blow.
Whilst the exchange rate has recovered from its all time low, you’ll still want to squeeze every little cent out of your pound.
So here are some money saving tips for getting more for your money:
Look at How the Exchange Rate is Faring on the Day
Pick the right time to change your money and try to change when the exchange rate is favourable. If you have plenty of time before you go on holiday, look at how the exchange rate has fared over the last month or so and ask a broker if now is a good time to change your money. Use the Internet to look at the exchange rate for that particular day to give you a rough idea of what the best rates are.
Is there a commission? When changing your money for Euros, there are two things to bear in mind: the exchange rate and the commission fee. Be cautious of companies that offer a ‘commission-free’ deal, because although they may not be charging you a fee, their exchange rate may not be the best available.
In this case you may find that you would get more money from somewhere that charges a small fee, but offers a better exchange rate. Always work out how many Euros you would have after taking both the exchange rate and the commission fee into account.
Don’t change money at the airport
To save money, don’t change money at the airport, as they offer some of the worst rates and will often charge higher commissions. Money change counters at the airport charge more because they have a ready-made, captive audience. Last-minute travellers who haven’t already purchased their Euros have no option but to exchange their money at the airport before they get on their flight.
Pre-Order Your Money
Pre-order your money before you go away to get the best GBP EUR exchange rate. You can pre-order your money through online websites, which will deliver the money to your home with no postage fee. Alternatively you can visit shops and department stores on the high street, or order money through your bank. Sometimes your bank may offer you a good deal with your account, but generally banks tend to charge higher fees.
Order a Larger Amount
Usually the more you exchange, the better the rate you get. Try to exchange larger sums of money instead of small denominations, because providers sometimes charge flat-rate fees that are the same no matter how much money you change.
If you have time to do some research, there are plenty of comparison sites that will show you the online exchange rates for different providers, allowing you to compare and choose. Buying online is usually better than buying on the high street and they can offer next day delivery free-of-charge. Exchange rates vary from day to day; so make sure you compare the rates at the time you want to purchase.
Look at the ‘buy back’ rate
Some providers, like the Post Office will buy back your leftover Euros, commission-free. If you think you’ll be coming back with Euros still in your pockets, choosing a provider that will buy back your Euros for free will save you from shelling out on fees twice.
Beware of ‘Dynamic’ Transactions Letting you pay in EUR or GBP
When making transactions in Euros, whether online or in a shop abroad, some companies will offer you the chance to pay in Euros or Sterling. Beware of this as you don’t know the conversion rates they are using and you may end up losing out. Your safest bet is to pay in Euros.