An Post had good news for people travelling overseas last week when it began selling commission-free sterling and dollars at more than 200 post offices.
Cash has increasingly been replaced by cards, especially when travelling outside of the eurozone. But customers of AIB have learnt the pitfalls of plastic after it imposed a limit of €100 a day on cash withdrawals in America and some other places outside of Europe. We search for the best deals in foreign exchange.
WHAT IS AN POST OFFERING?
Sterling and dollars without commission, saving you the 1% charged by the banks. At last Tuesday’s exchange rate, £500 would have cost €598, while the price for $500 was €369.
Foreign exchange is another step in An Post’s ambitions to become a one-stop holiday shop. More than 80% of passport applications and renewals take place at post offices.
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You can also ask the post office to halt deliveries while you are away. The mail minder service costs €35 for up to four weeks, €57 for up to eight weeks and €85 for up to 12 weeks.
HOW DO BANKS COMPARE?
Some have better exchange rates than An Post, but they lose their attraction when commission is added.
AIB and Bank of Ireland quoted identical prices last Tuesday — €603 for £500 and €373 for $500. Ulster Bank was slightly cheaper for sterling, €602 for £500. Permanent TSB was best for dollars — €370 for $500.
Credit unions give better value and come close to matching An Post, even though they charge commission. Rathfarnham credit union in Dublin, for example, quoted €598 for £500 and €371 for $500. They may not carry as much foreign currency as banks, however, so you may have to order sterling or dollars in advance.
WHAT ABOUT CASH OVERSEAS?
Most bank cards can be used at ATMs abroad, allowing you to withdraw cash as and when you want. European law prohibits banks from charging you more for ATM withdrawals in other eurozone countries than you would pay for the same transaction at home. Expect to pay more to access your account elsewhere, including in Britain.
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HOW MUCH?
AIB is the most expensive, charging a conversion fee of up to 3% depending on the currency, plus 1% commission on the total.
Bank of Ireland and Permanent TSB charge 3.5%. Ulster Bank also charges 3.5%, although not for cash withdrawals in Britain. AIB has temporarily reduced its cash limit to €100 a day in some countries, taking customers by surprise if they were visiting America or other countries affected. The bank says that the move is necessary because of attacks by ATM fraudsters and it is unable to say when the normal limit of €250 a day will be restored.
TOP TIP
Don’t leave your holiday money until the last minute. The International Currency Exchange desk at Dublin airport quoted €639 for £500 last Tuesday and €393 for $500. This is €41 more than the best sterling price and €24 extra for dollars. The airport prices include commission of 2.35% on top of exchange rates that are less favourable than those available from banks, credit unions or the post office. Bear in mind that banks will scrutinise transactions more closely for fraud when you use your card abroad. The National Consumer Agency said: “It’s a good idea to let your credit card company know that you will be using your card on holiday, so that any overseas spending won’t set off alarm bells.”