Lock in rate on a pre paid card or wait

Sstarkey

Hi There. I was hoping for some advice. We are going to New Zealand in March, something we have been saving up for for a long time. I have already booked all of the accommodation. Most of the accommodation is to be paid for when we get there. Since booking the rooms Brexit happened and so the cost of everything has gone up due to the exchange rates. Should I think about getting a pre-paid travel card to lock in the current rate in case it drops any further and costs even more. I have been saving money in order to exchange it closer to the time, but fear it will cost so much more. Any advice would be appreciated. Thank you

PeacefulWaters

If anybody could answer your question with certainty they'd be trading on the currency markets and becoming very rich.

Voyager2002

Get a prepaid card that allows top-ups as and when... put some of your travel budget on to the card each month. That way you will gain some protection against extreme fluctuations.

Doshwaster

Yes, putting some money onto a currency card each month can be a good way of saving for a holiday. The card won't pay any interest but it will balance out swings in the exchange rate and stop you accidentally spending the money on other things.

maman

Voyager2002 wrote: »

Get a prepaid card that allows top-ups as and when... put some of your travel budget on to the card each month. That way you will gain some protection against extreme fluctuations.

Martin:money: was asked this question on the radio on Monday from someone travelling to South Africa in several month's time.


His advice was to split it and do some now and some just before you go.


So, as you say voyager, hedge your bets. If the rate improves you'll have some at the better rate and if it doesn't you have that too.