Money
Getting the best deal
More bang for your buck
Dollars are cheaper today than they have been for 26 years, which means anyone planning a trip to the States might be toying with the idea of bagging their bucks now, writes Holly Thomas
As US currency falls against the pound, foreign exchange companies are reporting a surge in the number of people coming to buy dollars.
For those stockpiling for a trip next year, there is the issue of where to store the cash until you jet off.
Most people would feel uncomfortable keeping lots of money in the house, and home contents insurance policies typically only cover a few hundred pounds, so it could be risky buying up hundreds of dollars.
There are ways around this. Pre-paid cards, which carry the Visa symbol to be used as a credit card, can be loaded with dollars, and like any bank card pre-paid cards can be cancelled if lost or stolen.
Make sure you find one that is free from foreign transaction fees and costs nothing to load - such as Travelex's Cash Passport.
Alternatively, travellers' cheques offer security as they can only be cashed with a signature and on presentation of a passport. Some exchange places offer inferior rates for travellers' cheques so check this before you buy.
For those who might want to hang on and see if the dollar gets cheaper still, economists say the dollar will at some point return to normal levels.
Martin Gahbauer, economist at Nationwide, said: "Currency is one of the hardest markets to predict. But at some point the dollar will correct itself."
* Holly Thomas is an award-winning financial journalist and Deputy Personal Finance Editor at the Daily Express and Sunday Express. Holly's views represent her own opinions and are for general information only. Always seek independent financial advice.
