How to buy euros: Get a better rate by planning in advance

The worst way to buy holiday cash is to walk up to a bureau de change at a UK airport

All change: exchange charges vary hugely (PA)

“Pound at risk of fall to 1.25 and even 1.22 v euro say Lloyds,” read one financial headline this week. It's worrying news for holidaymakers preparing to travel to Europe at Easter, and with sterling already 10 per cent down on last summer's rate, all the more reason to be careful where you change money.

Comparing rates can prove confusing, because foreign-exchange dealers use various propositions. Some charge commission, others don't, and rates may vary according to how much you want. To compare banks, travel agents, the Post Office and online, ask: “How much will it cost to buy €500?” (or whatever you need). At a rate of €1.25, you would pay £400. The worst way to buy holiday cash is to walk up to a bureau de change at a UK airport. Moneycorp at Gatwick was charging £450 for €500; and were you to change them straight back to sterling, you would get only £327.

High-street outlets offer a better deal. The Post Office quoted £408, about the same as competitive travel agents. But to save the price of a few drinks, it's worth shopping around online, and perhaps pre-booking so that you can pick up your cash at an airport.

By planning in advance, you get a much-improved rate. Moneycorp at Gatwick wanted only £401 online for those precious euros. It also has what it claims is a unique Exchange Rate Protection Guarantee, at no extra cost. “Should the exchange rate be better at the time you pick up your currency, you'll get the better rate,” it promises. (If the rate deteriorates you don't have to pay more.)

Better still was Thomas Exchange Global – a London-based chain that has favourable deals for booking ahead and picking up in person. The cost of €500 drops to £398 if you can reach one of its offices; a 12 per cent improvement on the first quote – and, on a €500 transaction, enough for a decent dinner for two.