The pound has climbed against the euro and against the US dollar too. But, sterling is still around 25% lower than this time last year. So, it pays to look for ways to get more for your £.

Where to buy?

Exchanging money at the airport may be convenient-but often at a price! The rates of exchange are normally much poorer compared to those offered on the high street or online. The best currency exchange deals can be found online - and you can have the money delivered to your home address. Surveys have shown that exchanges can result in as much as 10% more by doing it online.

Commission-free the best?

Lots of places now offer commission-free exchanges. Sounds tempting. But, beware, foreign currency bureaus have to make their money somehow. And if they aren`t getting it through commission charges they`ll often make it via the exchange rate. Before you part with your money, simply work out buying your foreign currency a) with commission, and b) without commission. Bear in mind that quite often you get a better exchange rate if you are buying more than, say, £500.

Use your credit card?

Only if you really must! Yes, they can be a good idea as they can offer some free extra security under Section 75 Protection, which states that if you pay for something between £100 and £30,000 on a credit card, the card issuer is equally liable if something goes wrong. On the other hand the credit card issuer charges a hefty fee of 2.5% and 3.0% for you to use their card abroad.

There are still a few cards that don`t attract overseas usage fees, so it might be worth going for one of those.

Credit card for cash withdrawals?

one of the most expensive ways of getting your foreign currency. Avoid it like the plague. Most cards levy a loading fee, And you`ll probably also get charged a cash withdrawal fee often around 2% of the amount withdrawn.

A debit card is preferential if you must withdraw cash abroad, since at least you won`t be paying interest on cash withdrawals.

Travelers cheques

Every time you exchange travelers cheques for cash you get charged. Go for larger denomination cheques to keep the costs down per transaction.

Pay in local currency

If you're abroad and paying with your card, always pay in local currency if offered the choice of that or sterling. If not you`ll end up paying additional charges.

Pay in sterling on plane

Pay for your purchases in sterling. Use foreign currency and you`ll pay a crazy amount for the privilege. The airlines charge a currency exchange fee which means you end up paying much more than you should. And you`ll very rarely see what that fee is, just the price in that currency.

Like many things in life, good preparation is the key to making the most of your money when traveling abroad.

For more on money saving tips check Geoff's blog out at http://www.moneysava.blogspot.com, as well as his discount site at http://www.ourhometools.com