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Choosing The Best Currency Rate Option

If you are planning on going abroad for a holiday this year, you may not have thought too much about your currency options yet. It is however an important consideration as failing to choose the best currency rate may leave you significantly out of pocket. We shall explore some of the options available and help you decide what is likely to be best for you.

Cash is probably the most obvious currency option available, and the main benefit is that cash is accepted everywhere you go. That is also where the benefits of carrying cash end. Cash is usually the most expensive option due to the commission that has to be paid for the physical transaction of buying cash. It is also the least secure option as if you are targeted by pickpockets there is no comeback.

Travellers cheques, while often seen as a thing of the past, are still a valid payment option. The main advantage is security, as lost or stolen cheques can be replaced by the issuing institution, and fees are usually fairly low in comparison to other options. However, very few retailers accept travellers cheques nowadays and most people would prefer not to spend their holiday queuing at a bank to exchange their cheques for cash.

The most common currency exchange option now is the credit card, and indeed it does have several advantages. Convenience is the main benefit as the card is small and easy to carry, and it is accepted at the great majority of retail outlets. The issuer will also offer protection against loss or theft so it is also a secure option. The down side is that fees are often excessive, and because credit is afforded, it is all too easy to overspend and have repayments souring the memory of an otherwise enjoyable holiday.

The debit card is very similar to the credit card. Benefits offered are almost identical save for the credit facility, but higher withdrawal charges and slightly less acceptability make the debit card a less appealing option.

The prepaid currency card combines elements of all previously mentioned options and is by far the best for the average holidaymaker. Like credit and debit cards they offer security and convenience, but at a fraction of the cost as fees are lower and a better exchange rate than cash is offered. In addition, you are unable to overspend as the card is loaded with an amount determined by yourself before you depart.

Of all options, it is clear that the prepaid currency card is best when deciding upon the best currency rate. Other options may be used as a back up, but by using the prepaid card you will be able to relax and enjoy your holiday knowing that you will not be paying over the odds.

About the Author:

Foreign exchange does not have to be a barrier to travel. Tom Fisher is a travel author and has travelled the world but always returned to his home in the UK. Try www.fairfx.com for cheaper foreign currency

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