How to hold on to your holiday money this half-term -Experts offer tips on saving money whether you’re at home or away –

• Airport exchange rates up to 34% lower than the market rate
• Only one in five (22%) holidaymakers review credit or debit card fees before they go abroad
• Buy back rates could leave those with cancelled holidays out of pocket
• Beware of dormant fees on prepaid currency cards
• FairFX shares 5 helpful tips to save money this half-term

Currency experts at FairFX are encouraging people to think carefully before organising their half-term travel money and to be aware of spending traps that could leave them out of pocket

Those with a trip abroad booked this half-term will be keeping a close eye on the ever-changing quarantine exemption list, as they look to make their final preparations.

FairFX is offering advice on how people can save money this half-term, including; what you should do about travel money if your holiday is cancelled, how to avoid spending traps if you are heading abroad this half-term, and how to save money if you’re staying closer to home.

Here are 5 helpful tips to consider before the half-term break:

1. Pick the right plastic abroad

If you are able to take a trip abroad this half-term, there are some key spending traps to watch out for. FairFX found that just one in five (22%) holidaymakers review the likes of credit or debit card fees before they go abroad, meaning 78% people could find themselves caught out by unexpected charges while away.

A previous FairFX investigation into overseas fees and charges for debit and credit cards from seven high-street banks found that UK-issued debit cards had an average ‘non-sterling’ transaction fee of 2.82%, plus an average ‘transaction fee’ of £0.54, whilst a credit card had an average ‘non-sterling’ transaction fee of 2.77%.

If using an ATM machine abroad, FairFX warns holidaymakers to beware of two fees typically associated with foreign cash withdrawals; the ‘non-sterling’ fee, and the ‘cash-fee’. FairFX found that debit cards had an average ‘cash’ fee of £1.68 per withdrawal in addition to the ‘non sterling’ fee of 2.82%.

Ian Strafford-Taylor says: “Make sure you’re aware of the charges for using your card abroad whether it’s a credit or debit card, as you will face both a transaction and non-sterling fee. Being aware of the fees will mean you’re not hit with any unexpected charges that could eat into your spending money.”

“You also need to be aware of fees for using an ATM machine while in a foreign country, as they soon add up.

1. Watch out for dormant fees

If you’re not travelling this year, FairFX is urging those who usually take a prepaid currency card abroad to make sure they’re not being charged any inactivity fees.

Some providers start charging card users fees if their cards haven’t been used for a while, sometimes in as little as 12 months. These fees tend to be in the region of £3 per month.

Ian Strafford Taylor, CEO of FairFX said: “Unfortunately, some prepaid card providers have started to introduce this fee since the outbreak of Covid-19 as a result of less people travelling abroad and using their cards. It’s completely unfair for providers to penalise customers who haven’t used their cards during such a difficult time when travel has not always been possible.”

“We have never charged our customers dormant fees and that remains the case with our recently launched FairFX Currency Card. That means, if our customers can’t or choose not to travel abroad this year, they won’t be hit with any unexpected costs. This is unlike customers of other providers who have recently introduced these fees.”

1. Beware poor buy back rates

If your holiday is cancelled at the last minute or thwarted by travel restrictions, FairFX suggests thinking carefully before you change your foreign currency back into pounds.

Ian Strafford-Taylor, CEO of FairFX explains: “If you prefer to take cash abroad with you, consider the buy-back rates you would get if your holiday was postponed, or worse still, cancelled completely. Buy back rates are considerably worse than the rate at which you buy currency, so if you’re looking to sell back exactly what you bought, you’ll end up with less money than you started with, even though you haven’t left home.

“If you do find yourself in this position, then shop around before changing your foreign currency back into pounds, as you might find a better rate in doing so and get back more for your money.”

“It’s also worth checking any prepaid currency cards you might have. On average people return from holiday with around £177 worth of leftover currency, and if that’s on a prepaid card it could cover the cost of an adventure closer to home, or a treat for missing out on your holiday.”

1. Avoid leaving it until the airport

If you are heading further afield this half-term, FairFX is warning holidaymakers not to leave it until the airport to get their holiday cash sorted.

Earlier this year FairFX found that exchange rates offered at some airports were as much as 34% lower than the market rate, leaving holidaymakers out of pocket to the tune of £172 worth of euros for every £500 exchange. On average, exchange rates offered at airports during February half-term were 17% lower than the market rate at the time.

Ian Strafford-Taylor, CEO of FairFX says: “Bureau de change desks offer notoriously poor rates to holidaymakers, leaving them substantially out of pocket and making it a high price to pay for those who leave their holiday money until the last minute. Whatever you do when it comes to getting your holiday money, avoid leaving it until you get to the airport if you can help it.”

1. Always look online first

If you’re staying closer to home this half-term, and have a daytrip planned, FairFX has found that checking online before you go can save you a lot of money.

A new investigation by FairFX into some popular day-trip attractions in the UK, found that booking tickets online could save you as much as £14 per person, or £56 for a group of four.

Ian Strafford-Taylor, CEO of FairFX says: “As with all trips – whether abroad or closer to home – it always pays to plan ahead wherever possible. Some of the savings that can be made by booking online first before you travel are not to be sniffed at, and soon add up, especially if you’re going as a family or want to squeeze more than one adventure in over half-term. Just be sure to check cancellation policies before you book.”