How to get the best foreign currency deal

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With the children's holidays approaching and the UK predicted to have an average summer, many of us will be jetting off overseas in the next couple of months.

With so many things to get ready, like shopping for your new bikini, sun tan cream and flip flops, these will all take preference to shopping for the best deal on your foreign money.

But they shouldn't. With some of us spending possibly thousands of pounds on a summer jaunt, the savings you make by getting the best possible currency deal could pay for many pairs of flip-flops!

This year travellers will find an abundance of commission free currency deals, with only a handful of branch and telephone services now charging an upfront commission fee.

This is great news, as travellers will avoid paying these fees, which previously ranged between two and three percent of the order.

However, this now makes the exchange rate the key factor in determining the best deal.

It's something that's not easily searchable without trawling individual providers' websites or, even more time-consuming, making phone calls or visits to the branch.

Here are Moneyfacts.co.uk, the online comparison site, top five tips for getting the best deal:

• Look beyond your own bank or travel agent and take the time to shop around at least a few providers.

• Don't leave it to the last minute: purchasing at the airport will normally include a premium for the convenience.

• Watch out for delivery charges - these can be as much as £5.50 in some cases.

• Many providers will still charge a commission fee for sterling travellers cheques, which typically ranges between 1% and 1.5%. So check out the commission rates too.

• If you pay with your credit card you will be charged a cash handling fee, which will more than wipe out any savings made by getting the best exchange rate.

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