How To Get The Best Deal on Your Exchange Rate
15th OF September 2012
Going somewhere? To avoid the exchange rate consumer traps and potholes, don’t leave your currency exchange until just before you’re about to hop on that plane!
By Anna McDougall, Money Maven
With our highflying Aussie dollar, Australians are following suit, taking advantage of a healthy exchange rate in most foreign countries.
But beware the “cream-off”. According to SMH the cream-off is the difference in what consumers pay and the rates that are quoted in the media, which are the mid-market or wholesale rates. We are being urged to buy before we fly as leaving your transaction ‘til the last minute will cost us the big bucks.
The big banks have been found to be around for four to five per cent more expensive than mid-market rates for cash and travel cards, not including fees.
Check out these top ways to keep your exchange range rate expenses in check without getting caught out while you’re up and away!
Know the current exchange rate
Sounds simple right? You have to research the exchange rate between the two currencies to be able to know the current rate and determine whether it is fair or not. Use a website that shows current exchange rate without any markups and commissions. While abroad, make sure you also know market rate to know how much of a mark-up the country you are visiting is using.
Use the Reserve bank of Australia website as a starting point.
Travel cards are a good way to beating consumer traps as they overcome the currency exchange rate risk, as they are able to be loaded with a maximum number of foreign currencies at the prevailing exchange rates. Also be careful to not miscalculate how much you will need.
Compare Travel Money Cards with www.creditcardfinder.com.au
Create a Travel Budget
You just can’t go past good planning and organization to save you money abroad. Once you know exactly how much money you need to take with you, everything else will run smoothly! Plan your currency exchanges in a large city as it will be much in a small town. If you don’t plan, you will end up overpaying when you arrive at your destination.
The Art of Negotiation
Like to haggle? If you end up exchanging money at a kiosk or some other street vendor while you are overseas, try to negotiate a better deal. Kiosks and street vendors are usually located near local markets and bazaars where haggling is a way of life - in some countries people negotiate everywhere! Don’t be shy to try it, especially if you have a chance at saving money!
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