FM40 - Holiday Cash

You may think 'commission-free' means you are getting the best possible deal on your foreign currency. In fact, the exchange rate is also crucial. Essentially, the 'best' exchange rate will allow you to get the most foreign currency for your sterling. And very often, commission-free outlets offer poor exchange rates to make up their cut.

So - if you want the best deal, you need to pin down a combination of the best exchange rate and the lowest rate of commission.

Having said that, keep an eye out for the currency dealers who still charge high rates of commission on particular transactions. Many still charge a commission fee for Sterling travellers cheques - which typically adds 1% to 1.5% to their price.

As a pointer, Travelex Online (www.travelex.co.uk) usually tops the 'best value foreign currency' tables. The Travelex Online 'promise' guarantees it will offer the best overall price for your foreign currency - or refund the difference. Marks & Spencer and the Post Office often occupy second and third place - so it's definitely worth including these three in your currency hunt.

However, the rates, deals and fees associated with holiday money are constantly changing - so it's a good idea to spread your net a little wider as well and do some research.