An investigation by Which? this week has exposed how much of your hard-earned cash you could be throwing away, depending on where you get your holiday wonga. Airports offer some of the worst exchange rates, having last minute or unprepared travelers at their mercy!

Holiday makers seeking to get the biggest bang for their buck (sorry, sterling) should always spend a little time shopping around. Here’s the low-down from Which?

… the best deals for $500 were obtained from city centre bureaux de change and online currency providers. The most expensive providers were, unsurprisingly, the airport bureaux de change - if you don’t think about currency til you’re about to fly off into the sun, you are a captive market.

We also found that, while the Post Office online offers a good exchange rate for US dollars (it gave us the sixth-cheapest rates on average over six dates), the rate you’d get if you just strolled into a branch would be far less attractive. If using the Post Office is convenient, it is best to buy online, if possible, and opt for branch pick-up as there is no delivery fee (unlike home delivery).

The difference between the best and worse providers for $500 was more than £40.

When you’re buying currency, the best option is to pay with cash, although this is obviously not possible if you’re buying it online and have to pay upfront.

If you can, pay with a Maestro card, rather than by Visa, Amex or MasterCard, to avoid paying a cash transaction charge that will blow away any favourable exchange rate.

This entry was posted on Thursday, May 21st, 2009 at 5:12 pm and is filed under Budgeting, General.