Perfect storm for holidaymakers’ cash: Brexit and bank charges

Brexit-fuelled weakness of the pound and scandalous bank charges are putting the squeeze on holidaymakers’ cash – but the negative impact of both can be mitigated.

This is the message from the founder and CEO of deVere Group, one of the world’s largest independent financial advisory organisations.

His observation comes as recent polls show that sterling’s weakness is deterring Brits from summer holidays within the eurozone.

Nigel Green comments: “The pound against the euro remains under significant pressure as the Brexit chaos intensifies following the resignation of Prime Minister Theresa May and as a number of members of the Conservative Party jostle for position to become the next leader – many of whom, including current frontrunner Boris Johnson, are pushing for a hard Brexit, which would further hit the pound.

“With the unprecedented uncertainty, there are legitimate and understandable concerns from holidaymakers about how their holiday money will, in real terms, be reduced and how this will affect their summer getaway.”

He continues: “Against this backdrop of turbulence in the currency exchange markets, it can be expected that as we head towards summer, a growing number of holidaymakers will order prepaid currency cards.

“Prepaid currency cards such as deVere Vault will help them lock in exchange rates, when doing so is in their favour, and avoiding future uncertainty – and no-one knows what the future holds when it comes to Brexit.  There is a distinct possibility the pound could sink further against the euro over the summer as twists and turns over the UK leaving the EU escalate.”

Added to holidaymakers’ money concerns are excessive bank charges.

Mr Green says: “When you use your debit or credit card abroad in anything other than your destination’s local currency, you could be paying excessive exchange fees.

“Typically, an extra 6 per cent is added on top, but these fees can be up to 10 per cent.  All too often the customer is completely unaware of these costs.

“This is simply not on. In an increasingly globalised world, people have the right to expect hassle-free, borderless access to and use of their money, without excessive exchange rates.

“deVere Vault, an innovative global currency app as well as a single, multi-currency prepaid card addresses these issues.”

It automatically pays in Sterling in the UK, U.S. Dollars in the States, Euros in the eurozone, and Swiss Francs in Switzerland.

Users can convert foreign exchange in up to 27 different currencies within the app with the swipe of their finger and make a bank payment in any of these currencies, anywhere within the global banking system from within the app.

The multi-currency account also allows you to withdraw and spend money anywhere in the world where Mastercard is accepted.

In a survey carried out by deVere in 2017, 91 per cent of respondents said that the fees for using their traditional bank debit/credit card overseas were “unacceptably high.”

The deVere CEO concludes: “Brexit chaos and bank charges are creating a perfect storm for British holidaymakers’ cash.  But there are established solutions to mitigate the clouds so as still to enjoy the European sunshine.”