Travellers cheques and exchange rates?

Question

I'm going abroad to Spain next week and I'm planning on taking around £700 with me. I don't want to take it all in cash in case I lose it or it gets stolen so I'm going to take out some travellers cheques. I understand you can get them either in £s or in euros so which would be better? And if I did get them in £s, how do I go about exchanging them, is there a much higher exchange rate in Spain than her? Thanks a lot for your help

Answer 1

Travellers cheques or cash is the most expensive way to get your euros. The cheapest is by taking cash out the ATM once you are there, cheapest of all is the Nationwide debit card as there are no charges. With other debit cards check with your card issuer as some fees are much more than others. When you change cash or TCs you get the tourist rate, from the cashpoint you get the visa exchange rate, the difference between the 2 is about 6-7 cents for every pound.

Example: £500 cash could get you 600 euros, Nationwide debit card 630-635 euros. Other debit cards would get you the same rate, but most have fees involved, although you usually end up better off than cash, unless you make numerous small withdrawals, better to take out larger amounts if your card has a minimum cash fee.

If you take a credit card only use that for purchases, never to get cash as the cash advance fees are horrendous.

Many people open a Nationwide account for holidays & travel only, they just put all their spending money into the account before they go on holiday.

Answer 2

If you get them in sterling and don't spend them. you just sign them and pay them into your bank account, like you would with cheque. euros have to be converted and more often than not the bank takes a cut.

I always get them in sterling and if you avoid the HOTEL EXCHANGE you normally get a decent rate. I am going over in August and I will be taking half and half, currency and Sterling TC's.