smart money
For more financial advice, sign up
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at redonline.co.uk/ffnewsletterTake the right plastic Don’t just
take your everyday credit card on holiday with you; as
well as getting stung by a poor exchange rate, there will
be fees applied for using it abroad (typically 3%) and
possibly interest, too. Instead, use a card designed for
travel, which will offer better rates without usual fees.
THERE ARE TWO MAIN OPTIONS
A travel-friendly credit card These include Halifax
Clarity, Barclaycard Platinum
Cashback Plus, Tandem and
Santander Zero.
A prepaid card Try ones like WeSwap,
Fair FX and Caxton FX (which can be
topped up and converted to different
currencies before leaving home). If
you’re visiting several countries, look
for a prepaid card that allows you to
hold multiple currencies on one card.
TIP Look at new travel-friendly
current accounts, too, such as those
from Starling Bank and Monzo, which
offer fee-free spending abroad at
competitive exchange rates. Plus,
take your card provider’s emergency
number with you and keep it separate
from your cards in case you need it.DOn’t convert
Instant currency conversion isn’t
everyone’s strong point, so you may
be tempted to use sterling if you’re
offered the option when paying by
card. But using pounds abroad is
always the more expensive option,
adding 6%, or as much as 10%, to the
bill. This is because the supplier’s
bank – rather than your own – chooses
the conversion rate. This year, there’s
a new twist: there are reports of
British tourists being tricked into
paying bills for food, drink or
accommodation in pounds (rather
than in the local currency) by retailers
switching the currency after they’ve
entered their card’s PIN number.
Be aware that under EU law, retailers
have to disclose charges, and you- the customer – should always
be given the right to choose the
currency in which you want to pay.
Avoid airport cash
Killing time in the airport? Don’t be
that person who uses the ‘dead time’
after clearing security to buy holiday
money. If you leave buying currencyuntil the last minute, you risk paying over the odds. Research
by Red found that if you exchanged £400 at the airport via
Moneycorp, you would receive €336 in return. But if you
ordered £400 from Post Office Money online, you’d
receive €460. Use websites such as travelmoneymax.co.uk
and compareholidaymoney.com to find the best value.
Most companies deliver your order to your home for
free. Left it until the day before? Some providers, such
as Travelex, allow you to order money
online and collect it at the airport.Say bye to buy back
If you have currency left over, don’t
pay extra for a ‘buy-back guarantee’.
Instead, check money.co.uk or
compareholidaymoney.com for a list
of competitive buy-back rates, or
donate the money to charity through
either Post Office or M&S Bank.Keep calls cheap
Use WhatsApp to make free
calls. To check your bank balance
or move money securely when
you’re abroad, use a Virtual Private
Network (VPN) app, which creates
a protective tunnel around your
personal data so that it can’t be
intercepted by hackers. Our tech
experts rate the NordVPN app
(£9.15 for one month).Watch your he a lt h
A broken leg in Thailand could cost
you around £17,000 in medical fees
if you had to cover them yourself,
so why wouldn’t you fork out the
£14 or less on travel insurance for
the family? Compare prices and
check carefully what’s included.
Until the UK exits the EU, you have
the right to state healthcare at a
reduced cost, or for free, providing
you have an EHIC card. It’s free, so
visit ehic.org.uk at least three weeks
before you travel and order one. If
you already have a card, check its
expiry date; it lasts five years.NOT BOOKED YET?
Bag yourself a cheaper flight:
Switch your web browser to
Incognito Mode to stop retailers
tracking you and pushing prices
up when you return to their sites.
Prices can vary, so check more than
one comparison site for deals:
try Kayak, Skyscanner, Expedia,
Netflights and Google Flights.
Visit jacksflightclub.com, which
monitors global airfares, and sign
up for its daily price-drop alert.
Being flexible about your destination,
or even date and time of travel, will
help you secure the cheapest deals.
Taking hand luggage only will keep
down the costs, but double-check
the allowance. See our guide to the
top airlines at redonline.co.uk and
search ‘airline cabin baggage’.DOS AND DON’TS
OF AIRPORT PARKING
Always book ahead (even if it’s just
one day in advance) to save 25%
to 50%. Also use comparison
websites, such as parking4less.com
or airportparking.co.uk.
If you live far away from where
you’re flying from and are staying
overnight at an airport hotel,
it’s usually cheaper to park your
car there while you’re away.GOLDEN RULES
OF CAR HIRE
Compare prices online at two or
more sites (travelsupermarket.com,
zestcarrental.com or kayak.co.uk).
Read the small print to avoid extra
costs (mileage limits, exclusions for
under-25s or car return with full tank).
Firms often charge lots for gadgets
like satnavs, so take your own.
Hiring a child car seat can cost
upwards of £50, but taking your
own is free with most airlines.PH
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