High street (BSE: HIGHSTREE.BO - news ) banks offer some of the worst currency exchange rates for those looking to get their holiday money delivered at home, according to new research from the consumer group Which?
The banks offering the poorest deals were HSBC (LSE: HSBA.L - news ) and RBS (LSE: RBS.L - news ) /NatWest, while Halifax offered the most competitive rates for a high street bank. However, it was easily beaten by some of the online providers.
For those looking to switch 600 into dollars, the best deal was offered by ICE Home Delivery, with Travelex, FairFX and Tesco Travel Money offering rates that were almost as competitive. Here customers would receive almost $35 more once exchange rates and any fees and commission were taken into account than from HSBC.
Those planning a ski trip or winter sun breaks this Christmas are urged to shop around for the best currency deals. Consumers should look at the total costs and not assume that "commission free" offers necessarily mean the best deals, as many suppliers that do not charge these additional fees offer a poor exchange rate.
Holidaymakers are also advised to avoid buying euros, dollars or other overseas currency from airport exchange bureaus. Booking online and picking up at the airport typically offers a far better rate than simply turning up on the day to exchange sterling into other denominations.
However, as some currency providers including Thomas Exchange and FairFx charge for delivery of amounts of less than 500, these may be less competitive on smaller conversions.
According to Which? Money, which analysed the exchange rate for US dollars and euros over a month, the Post Office remains the most popular foreign exchange outlet, despite the fact that it was only mid-table among the outlets surveyed.
In a separate move it was announced this week that debit card charges for buying overseas currency in the UK would be scrapped. Banks have now agreed that they will no longer impose these charges although the changes may not come into effect for another year.
However, most will still impose foreign loading fees for using cards to purchase goods and services overseas, or to withdraw cash from foreign cashpoint machines.
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