Poor exchange rates cost Britons millions

Tip Posted on 18/07/2012

British holidaymakers will lose roughly 215 million euro this summer from not shopping around when exchanging sterling to euros, according to statistics by the Office for National Statistics. Figures show that Britons could save up to £10 for every £100 exchanged by taking time to search for the best rates online and in banks and high-street retailers.

Exchanging money is something every British holidaymaker has to consider when going abroad, with most British travellers requiring the euro. Online exchange rates tend to be better than buying euros in person. However, only seven per cent of British voyagers plan to order their currency via the internet this summer, as shown by a Moneycorp survey. Therefore, Britons could save precious pennies, as well as a trip to the bank, by choosing the online option.

The most costly rates tend to be found once tourists reach their destination, particularly in large resorts. Moreover, holiday-goers are usually charged commission once abroad, whereas it is often easy to find commission-free retailers in the UK. Despite these facts, 11 per cent of those surveyed by the Office for National Statistics said they intended on getting their euros once they arrive at their destination. Likewise, getting money from ATMs abroad inevitably incurs a charge, which several British travellers forget. As result, many Britons are set to lose out this summer despite the fact the pound is currently stronger than the euro.

A currency expert at Moneycorp, Olann Kerrison, highlighted: "People will spend a serious amount of time thinking about and booking their holiday to get the best deal. Yet when it comes to exchanging their money, people potentially throw out all that hard work by not taking the time to shop around for the best rates." We recommend not leaving exchanging money until the last minute, as the potential for losing out this summer is much greater than most Britons realise.

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