Top Tips for Exchanging Holiday Money: How to Get the Best Exchange Rate
Published 25th of May 2011·Updated 8 April 2026
Reviewed by: Reviewed for accuracy April 2026
The best place to buy holiday currency is online through a specialist provider such as Wise, Travelex or the Post Office, ordered at least a week before you travel. Airport bureaux de change consistently offer the worst rates in the UK, often 10 to 15 per cent worse than the interbank rate. Planning ahead typically saves a family of four between £50 and £150 on a standard holiday.
Short Summary
Never buy currency at the airport unless you have no other option. Rates at airport bureaux de change and hotel desks are typically 10 to 15 per cent worse than what you would get from an online provider or your high-street bank.
Compare the total cost of exchanging money, not just the headline rate. A provider advertising a strong rate may also charge a fixed commission fee that makes the overall deal worse than a competitor with a slightly lower rate but no fee.
Specialist travel debit cards from providers such as Wise, Starling and Chase offer near-interbank exchange rates with no transaction fees. These are now the most cost-effective option for most travellers for in-country spending.
Decline the option to pay in pounds when using your card abroad. Dynamic Currency Conversion, where a foreign terminal offers to charge you in sterling, always applies a poor exchange rate. Always choose to pay in the local currency.
Where is the best place to buy holiday money in the UK?
Online currency providers offer the best rates for most popular holiday currencies including euros, US dollars and Turkish lira. Providers such as Wise, the Post Office, Travelex and MoneyCorp allow you to order online and collect from a branch or have the currency delivered to your home. Use a comparison site such as TravelMoneyMax to compare rates across multiple providers on the day you want to buy.
High-street banks such as Barclays, NatWest and Lloyds also offer currency, but their rates are generally not as competitive as specialist providers. The Post Office is a reliable middle ground: its rates are usually better than the major banks and it has branches throughout the UK with no delivery wait if you collect in store.
Avoid buying currency at the airport. Research by consumer group Which? consistently finds airport bureaux de change among the most expensive options available. If you arrive at the airport without any foreign currency, withdraw a small amount from the airport cashpoint using a fee-free travel card (see below) rather than exchanging at the terminal.
How do commission fees affect the total you receive?
Always check the total amount of foreign currency you will receive, not just the exchange rate. Commission fees can significantly change the real value of a deal.
| Provider type | Typical commission | Rate quality |
|---|---|---|
| Online specialist (Wise, MoneyCorp) | None or flat fee | Best |
| Post Office | None | Good |
| High-street bank | None to 2% | Average |
| Airport bureau de change | None advertised | Poor rate compensates |
| Hotel desk | None advertised | Worst |
"Commission-free" does not mean free. Providers that advertise no commission simply build their profit margin into a less favourable exchange rate. The only accurate way to compare is to calculate how many euros or dollars each provider gives you for the same amount of pounds.
Should you use a travel card or cash abroad?
A specialist travel debit card is now the most convenient and cost-effective way to handle money abroad for most UK travellers. Cards from Wise, Starling and Chase convert your pounds to foreign currency at or near the interbank rate with no foreign transaction fee. Starling Bank in particular charges no fees for card payments or cashpoint withdrawals anywhere in the world.
If you prefer cash, use your travel card to withdraw local currency at a cashpoint rather than pre-ordering large amounts. This gives you a competitive exchange rate and avoids the risk of carrying large amounts of cash. Most specialist travel cards allow one or two free cashpoint withdrawals per month; check your card's specific terms.
Pre-paid travel cards from providers such as Caxton and Travelex are an alternative for those who want to fix a budget in advance. They let you load a set amount at today's rate, protecting you if the pound weakens before your trip. However, charges for topping up, withdrawing cash and holding a balance vary considerably, so compare the full fee schedule before applying.
What is dynamic currency conversion and why should you avoid it?
Dynamic Currency Conversion (DCC) is when a foreign card terminal or cashpoint offers to convert your payment into pounds and charge your UK card in sterling rather than in the local currency. It sounds convenient, but the exchange rate applied by the merchant is almost always worse than the rate your bank or card provider would apply.
The premium on DCC transactions typically runs from 2 to 8 per cent above the interbank rate. On a hotel bill of 500 euros, that could mean paying £30 to £50 more than necessary. Always select "pay in local currency" when prompted, regardless of which card you are using.
When is the right time to buy holiday money?
Currency markets move daily and it is difficult to predict the best moment to buy. Buying your currency two to four weeks before travel is a reasonable approach for most people: it avoids the last-minute premium and gives you time to shop around without leaving it so close to departure that you feel pressured.
If you are taking a large sum abroad or travelling for an extended period, consider a forward contract through a foreign exchange broker such as MoneyCorp or Global Reach. A forward contract locks in today's exchange rate for a purchase you will complete at a future date, protecting you if the pound weakens before your trip.
What should you do with leftover foreign currency?
Return unused notes to the provider you bought them from if you still have your receipt. Many specialist providers, including the Post Office, will buy back currency without charging commission if you have proof of original purchase.
If you travel to the same destination regularly, keep the leftover currency for your next trip in a clearly labelled envelope. Currency does not expire, though some countries do occasionally redenominate their banknotes, so check that old notes are still legal tender before you travel.
Frequently Asked Questions
Is it better to use a credit card or debit card abroad?
A specialist travel debit card such as Starling or Wise is usually the best option. Standard credit and debit cards from high-street banks typically charge a foreign transaction fee of 2.75 to 2.99 per cent on every purchase, plus a cash withdrawal fee. Some travel credit cards, such as the Halifax Clarity card, do not charge foreign transaction fees and may offer additional purchase protection, but you need to pay the balance in full each month to avoid interest.
Can I get a better exchange rate by exchanging larger amounts?
Sometimes, yes. Some providers apply a better rate above certain thresholds, for example over £500 or £1,000. This is more common with specialist foreign exchange brokers than with high-street providers. For large transactions, it is worth ringing a broker such as MoneyCorp or Currency UK to ask about their rates before committing.
Should I tell my bank I am going abroad?
Yes. Most UK banks recommend notifying them of travel plans to prevent your card being blocked due to suspicious overseas transactions. You can usually do this through your bank's app or by calling the number on the back of your card. Starling and Monzo do not require travel notification as their systems automatically recognise foreign transactions.
Are travellers cheques still worth using? Travellers cheques are largely obsolete. Very few shops, hotels and restaurants outside major tourist areas still accept them, and the commission fees involved in buying and cashing them make them an expensive option. A specialist travel card provides the same security (you can freeze the card if it is lost or stolen) with far greater acceptance and better exchange rates.
What happens if I run out of money abroad?
If you have a Wise, Starling or Monzo account, you can top it up instantly via the app from your UK bank account. Alternatively, a friend or family member in the UK can send you money via bank transfer or PayPal. Western Union and MoneyGram also offer emergency cash transfer services, though their fees are higher than a standard bank transfer.