Best time to buy Euros for your summer holiday revealed plus how you can save £100s

The Sun

9 hours ago

BRITS jetting off to Europe for their summer holidays could risk losing cash if they pick the wrong time to buy the currency.
When heading abroad, it is not uncommon for many holiday-goers to exchange cash into the currency of the country they are travelling to.
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But when you convert cash from one currency to another, you could end up getting more money in return or in some instances less.
Factors such as inflation and the economic stability of a country can impact how much a currency is worth.
Currently, the Great British Pound (GBP) is worth more than the Euro, a currency used in many popular holiday destinations.
So for example, if you had £100 and exchanged it you would get €116 in return.
While UK holiday goers currently get more money back when they swap their cash for Euros, returns have been better in previous years.
Back in 2024, £1 was worth €1.18.
Tony Redondo, founder of Cosomos Currency Exchange told The Sun that factors such as "soft UK economic data" and "rising geo-political tensions" is pushing the Pound to Euro exchange rate lower.
Inflation fell to 3.4% in the 12 months to May, raising expectations the Bank of England could cut interest rates tomorrow, June 19.
This can lower the value of the Pound as investors seek to get higher returns elsewhere.
With this in mind, Tony said that holiday goers heading to Europe before the end of the month, should buy Euros "soon".
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He said: "It might be best to buy soon to protect from any further possible downside."
But the money expert said that those not travelling until the end of school holidays have no need to panic.
He said: "A calculated gamble would be to wait it out as the world moves at such a pace nowadays, that hopefully, the Pound has time to recover.
"After all, in 17 out of the last 20 years, the Pound has gone up in value against the Euro in either July or August. "
It is worth noting that exchange rates can go up and down.
With that in mind, it may be worth checking online currency converters to see how much you can get.
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When heading abroad there are a few hacks to ensure you don't end up losing money.
Customers should avoid exchanging money at the airport as they tend to have higher fees due as they cater to a captive market.
Kara Gammell, personal finance expert at MoneySuperMarket, said: 'If you have a holiday booked and want to make the most of current rates.
"Don't wait to buy your travel money at the airport as you will pay a premium – and never pay for your currency with a credit card as paying on plastic means you'll be charged a 'cash advance fee".
This fee is charged on ATM withdrawals but also on transactions such as online gambling and buying foreign currency.
You should also be aware that banks tend to charge customers a fee for using their debit or credit card abroad.
For example, NatWest charges customers a 2.75% fee for spending your debit card abroad.
That would add a £1.16 charge to the cost of a jacket which cost £42.16.
But some banks don't charge you for spending abroad.
For example, Monzo does not charge its customers foreign transaction fees nor does First Direct.
Are there other options to for spending abroad?
There are several specialist cards that can give you a great exchange rate.
These cards include travel credit cards and pre-paid cards which can let you pay abroad without fees or at a set exchange rate.
Senior Consumer Reporter Olivia Marshall explains all the options.
Travel credit cards: Travel credit cards allow you to spend money abroad without being hit by any fees or hidden charges.
But, they may still charge you for taking cash out.
We recommend the Halifax's Clarity Card as it won't charge you for using it abroad, nor are there any fees for withdrawing cash.
But you will be charged interest if you don't repay your balance in full at a rate of 19.9 per cent.
And you will be charged interest on cash withdrawals until your balance is paid off too, at a rate of between 19.9 and 27.95 per cent depending on your credit score.
In other words, just because you are using plastic abroad doesn't mean you don't have to pay these credit cards off like you normally would.
Always pay off your balance before the end of the month with these cards to make sure that any money you saved isn't wiped away by paying interest.
For more on travel credit cards you can read our guide here.
Pre-paid cards: An alternative to carrying cash around is to get a pre-paid card.
These cards allow you to put a set amount of cash on the card at a fixed exchange rate.
So if the rate is good at the moment, you can put money on your card and it will stay that rate when you are on holiday.
Just keep in mind that these cards can sometimes have hidden costs and charges so be sure to read the small print.