Do you know what exchange rate the local currency exchange is giving you? Do you really know how much commission they are charging? In some cases it is 3% of the total value of your holiday spending money. If you change your money at the airport, they will charge you even more!!

The first question you have to ask yourself is do you really need hard cash the second you walk off the plane? In most cases, the answer will be no which is where your trusty debit card will come in handy (debit not credit as you will pay interest on credit cards from day 1). Find an ATM with the Visa or Maestro logo on it and withdraw your cash there. You will get a better rate than at most high street currency stores. The even better news is if you have a Nationwide Flexaccount with a Visa debit card. You can withdraw funds from any Visa ATM and not only will you not be charged commission, you get the commercial exchange rate and not the tourist rate. This can save you vast sums of money and put extra Euros in your pocket. It has to be said as well, that if you make a purchase overseas with a Nationwide credit card, the same principle applies.

Sound too good to be true? Be warned, it can be expensive if you get it wrong!! European banks are using exchange rate tricks to confuse holidaymakers and some ATM's will offer to fix the exchange rate for you there and then. For example. You enter your PIN and type in a €100 withdrawal. The next screen will ask if you want to withdraw €100 or be charge £90.00 in Sterling for the transaction. You are better off accepting the Euros figure as the exchange rate offered is usually worse than your own banks (they have to make money after all!!). The same goes with credit card purchases. Always make sure you are paying in Euros and not the converted Sterling rate they offer.