Martin Lewis reveals whether you should buy holiday money now or wait until after Brexit
HOLIDAYMAKERS worried about how Brexit will affect their spending money should hedge their bets and wait until the day they spend to get the best rate.
That's the advice from Martin Lewis to Brits who are planning to head abroad over the Easter break.
In the latest newsletter, the guru has offered some helpful advice to travellers who are going abroad after March 29 - the day when the UK is expected to leave the EU.
Many factors, particularly political, can make the value of the pound go up or down - the pound hit a four-week high yesterday after Theresa May announced a possible delay to Article 50.
But it also weakened following former Brexit Secretary Dominic Raab's resignation, so who knows exactly what Brexit will do to the pound.
In a frank response to readers' woes, Martin wrote: "Sorry to disappoint. Anyone who tells you they can predict the currency future is a liar.
"Rates fluctuate by the minute, and the only certainty right now is the uncertainty - and that means high volatility."
How to get the best holiday money rate
WE spoke with Hannah Maundrell, editor-in-chief at money.co.uk to find out how you can guarantee the best rate when you go on holiday
- Don’t buy cash at the airport – you’ll always be able to beat the rate with a bit of forward planning
- Compare travel money companies online – Factor in delivery costs and choose the option that gives you the most cash to spend on holiday. If you’ve left it until the last minute order online for airport collection so you get the best of both worlds.
- Use comparison tools – MoneySavingExpert’s TravelMoneyMax enables you to compare pick-up and pre-order rates.
- Don’t pay for travel money with a credit card – it’s likely you’ll be charged a cash withdrawal fee which adds to the cost.
- Top up a prepaid card to lock in your rate now – Choose your card and read the T&Cs carefully as some apply hefty fees. WeSwap, FairFX and Caxton FX are all worth checking out.
- Always choose to pay in the local currency rather than sterling – This will help you avoid sneaky exchange fees
Martin's best advice is to stop worrying and look for the best rate on the day that you spend.
He recommends using a specialist overseas travel card abroad which will let you spend abroad without being charged a fee, unlike normal debit or credit cards which typically charge around three per cent.
That way you get the best rates of the day, without the stress of gambling weeks before your holiday.
Starling's debit card doesn't charge for making cash withdrawals or purchases abroad while you won't pay any interest on transactions made overseas with Barclaycard's travel credit card as long as you pay off your balance in full each month.
Another useful tip for travellers is buy half now at today's rates and rely on the currency of the day you spend for the half that's left over.
That way, you'll only be paying rip-off rates on 50 per cent of your spending money.
Take a look at today's exchange rate and if you're happy paying it then go for it because holding off is an unpredictable risk.
Another trick Martin recommends is finding a bureaux de change that lets you order now and sell it back later, often within three to 45 days.
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Not all of them provide this service but it will give you an opportunity to lock into to current rates and change your mind later if things dramatically improve.
You need to watch out though because sometimes you'll have to pay a fee to sell them back, which will eat into any cash you save by swapping to a better exchange rate.
If you're looking for a credit card to use to spend on your holiday then you should check out our guide the best ones on the market.
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