When is the best time to buy foreign currency?

Video: With an election looming, a hung parliament could hit sterling

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The Independent Online

You could save a tenner for every £100 you spend abroad by being smart, advises Bob Atkinson of TravelSupermarket.

“Plan what you’re going to do and how you’re going to spend overseas,” he says. He points out that the cheapest way to pay abroad is actually to use plastic. But not any plastic. “Look for credit and debit cards which are designed for usage overseas. The market-leading deals – such as the Halifax Clarity credit card and Norwich & Peterborough debit card - have no hidden currency loading fees or transaction fees.” So if you spent, say, 600 euros on one of these cards you’d actually spend about £470, based on today’s rate, he says.

“Compare that to the worst option, which is to rock up at an airport and actually buy euros without preordering. Do that and you’d end up spending about £515 on today’s rates at somewhere like Heathrow,” Mr Atkinson says. “That’s a difference of around 10% which means it’s effectively like throwing away £10 for every £100 you spend on holiday.”

With an election looming, he warns that the strong possibility of a hung parliament will hit sterling.

Watch our video to find out his suggestions of the best way to buy ahead of your holiday and why you need to be careful when buying pre-pay cards.

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