What currency should you take to the Costa Blanca ?
Euros ... changing all your currency in advance could be risky, especially if you fall victim to theft or loss. There may be insurance limitations on the maximum amount of cash covered by your travel policy, whether lost from your own person or from your personal safe.
Euro Travellers Cheques ... generally sold commission free in the UK, but at a rate of exchange which is a few cents lower than what you would find in overseas holiday resorts. So during the purchase transaction alone, you may lose around 3%. Then when you cash them overseas, you may be charged another 2% or 3%, although we have heard of cases of up to 10% being charged. If you bring any unused Euro cheques back home with you, the vendor will most probably cash them for you commission free, but at a buy-back rate which could be as much as 15% lower than the selling rate, so it really is a massive loss. I personally would never recommend Euro Travellers Cheques, as any benefits are usually stacked in favour of those businesses which sell and exchange them, rather than those holidaymakers using them.
Sterling Travellers Cheques ... sold in the UK usually with a fee of around 1% or 2%, although some places such as Lloyds TSB are currently selling them commission free. In major overseas resorts, although it may vary from country to country, holidaymakers can usually cash them commission free, taking advantage of the better exchange rates which are available outside the UK. If you bring any unused Sterling cheques back home with you, the vendor will most probably cash them for you commission free, at face value, and so without the prospect of any additional loss.
ATMs ... exchange rates, commission, service charges, etc vary from bank to bank. Please check with your own card provider for details. The Nationwide Flex Account is frequently recommended throughout the forums, as it currently allows overseas use free of any commission or service charges. I know that many prefer ATMs, my fear is always what might happen if there is a technical problem, or the machine swallows your card when you are desperately short of funds. There is also a problem in some holiday resorts (just as there is here in the UK) of some groups of criminals using the Lebanese Loop method and hidden camera, etc to steal your card and your pin number, and then clear your account as soon as you walk away from the machine. These are not problems which can easily be resolved when you are away from home.
Travel Agent/Cheque Provider's usual recommendation - take Euro Travellers Cheques. Why ? Because it offers them the best deal.
My personal recommendation - take just enough Euro currency to use until the first working day when you can reach a bank or exchange bureau, then use Sterling Travellers Cheques. Why ? Because it offers you the best deal. A few cents here and a few per cent there may seem negligible, but if you base it on your overall holiday spends for a typical family's two week holiday, then the potential differences between the value of Euro and Sterling Travellers Cheques can be shocking. Alternatively, a Nationwide Flex Account card will currently allow free overseas transactions, bearing in mind the potential problems with ATM machines if you have only one available card.
David
I'm an older folk and I don't use the indoor market.! People use the indoor market because Shelia's is recommended to them by the reps because they know people won't get ripped off...why ????? when there are others who are just as safe and giving the same rate like the Eurotabacos and the Barrel, so why don't reps plug these places too......it's a sheep thing.!
