Tips And Works

Don't flash the plastic

It's a bad idea to buy foreign currency with a credit card because it is treated as a cash advance with a fee of between 2 and 4 per cent. Some banks treat their debit cards the same way. Check with your bank to find out its policy before you buy. Pay with cash to escape the charge. The best way to obtain foreign currency cheaply is to open a Nationwide BS FlexAccount, a current account which allows free ATM withdrawals worldwide.

For Irish travellers to other eurozone countries, ATM cards can offer the cheapest and handiest way to withdraw money. Since July 2002, withdrawals of euros in other EU countries incur the same charges that apply in Ireland - around 20c-23c.

Point and click to save

Buying your holiday money online is cheaper than several other options because the exchange rate on offer applies to the day you order the currency so if you are organised you can get a great rate. Travelex, the online currency provider, says it will provide the cheapest rate on the entire market or refund the difference. There is even a rate tracker service that allows users to set the exchange rate they want to buy at, $1.80 for £1 for example, and when that rate becomes available Travelex will send an email alert stating that it's time to buy. Travelex does not charge commission or service fees, but you do have to queue up with everyone else and pick up your currency from the airport. If you are not flying, not every ferry port or railway station will have a Travelex bureau. Ryanair and BAA (British Airport Authority) have a tie-in with Travelex on their websites. You can also buy foreign currency (£50-£2,500) online with Thomson.co.uk.

The Post Office

The Post Office offers competitive exchange rates on a large selection of foreign currencies and American Express travellers' cheques, and does not charge commission, (with the exception of American Express sterling travellers' cheques). Order online for home delivery (charge is £5 for orders of less than £400; free for orders of more than £400), order in branch or by calling 08458 500 900 and collect your money within four working days or buy on the spot at an "on demand" branch.

M&S

Trusty Marks & Spencer Money offers commission-free currency exchange at its bureau de change points in its larger UK stores, although there is a 1 per cent charge on sterling travellers' cheques. The &More credit card offers 55 days' interest free credit if you pay off your balance in full by the due date. M&S Money also provides a home delivery service with no delivery charges as long as the sum involved is greater than £500. Order less than that, and a £5 charge is incurred.