Rate Guard

You’re days away from leaving on your holiday and it’s time to get those last few things sorted – packing your bags, getting your passport out and sorting your foreign exchange. You’ve been watching the rates for the last few weeks, and it’s been holding steady, so now is as good a time as any to get your foreign currency sorted out.

Except, the day after you purchase your foreign exchange, you happen to walk past the bank or foreign exchange bureau, and the rate has improved. If you had waited just one more day, you would have gotten more foreign currency for your Kiwi dollars. Huge bummer!

There is nothing worse than being caught out by a change in exchange rates – especially AFTER you have done your exchange. But, what can you do about it except maybe yell a little in frustration?

Generally, there is nothing you can do. Except if you purchase your foreign exchange from Travel Money NZ. Then you can Rate Guard your purchase! 

So, What is Rate Guard?

Essentially, it’s a 14 day exchange rate guarantee – if you purchase select foreign  currencies  (USD, GBP, EUR, AUD, IDR, FJD & THB) from one of our stores and the rate improves within 14 days of your purchase, we will pay you the difference*!

And how does it all work?

Well, let’s look into that in a bit more detail shall we?

Changing Exchange Rates

Before we go into detail on our Rate Guard offer, let’s take a look at why you might need it in the first place.

Exchange rates are constantly fluctuating up and down because most of the world’s currencies are bought and sold on the foreign exchange market based on a system of flexible (or floating) exchange rates. This means that their prices go up and down based on the supply and demand of the currency. A high demand for a currency or a shortage in its supply, will cause the price of that currency to go up. On the other hand, a low demand or an oversupply of a currency will cause its price to go down.

The supply and demand of a currency are tied to a number of factors, including a country’s economic and monetary policies, inflation, interest rates, political conditions and a whole host of other factors that are not in your control.

And while currency fluctuations in the foreign exchange market mainly affect the banks, big businesses and governments that trade the market, the impact of these changes eventually trickle down to travellers – you and me – and the exchange rates that are available to us when we want to buy foreign currency for our holiday. (If you’d like to understand more about how exchange rates work, read our blog post “Foreign Exchange Explained”.) 

Say you’re heading to the States on your holiday and you need US dollars (code: USD). You visit your nearest Travel Money NZ store today (6 March 2017) and want to exchange NZ$1000. The exchange rate available today is 1NZD = 0.68015USD, so you get US$680.1^ for your New Zealand dollars.

But, if you had done your foreign exchange just a few days before (1 March 2017), the exchange rate was 1NZD = 0.6975USD, so you would have received US$697.5^ for that same NZ$1000.

The difference in the amounts may seem negligible, but they can (and do) make a difference to how much travel money you have available for your holiday. So, if you could, wouldn’t you want to protect your travel money from exchange rate fluctuations?

That is where our Rate Guard offer comes in!

How Does Rate Guard Work?

Rate Guard is a way for you to protect yourself from any changes in exchange rates that would ultimately impact your travel money. If you purchase a Rate Guard currency (USD, GBP, EUR, AUD, IDR, FJD or THB) from any of our stores, and the rate improves within 14 days of that purchase, we will pay you the difference. At the time of making your purchase, you just need to agree to add Rate Guard to your transaction (its free, you just need to provide your personal details for the transaction). Then, if the rate improves, you just go back to the store you originally made your purchase from (bring your bank details with you), and submit your Rate Guard claim by showing your receipt with your Rate Guard reference number on it.

Your Travel Money NZ FXpert will process your claim for you, and the difference will be paid into your nominated bank account in New Zealand dollars within 5 business days.

It is that simple.

There are a few details you should keep in mind though:

  • Rate Guard is only available when you purchase the following currencies: US dollars, Euro, British Pounds, Australian dollars, Indonesian Rupiah, Fijian dollars and Thai Baht    
  • It is only available to foreign currency purchases done in store, and at the advertised rate
  • It is unfortunately not available to online transactions
  • If you have purchased multiple currencies, Rate Guard will apply to any or all of the eligible currencies you have purchased
  • It is FREE – there are no costs to add it to your transaction and no fees to process a claim

 

What Are the Benefits?

It’s a bit of a win-win situation really….

You buy a currency and the rate goes down the next day – you win because you already purchased your currency at the better rate. Yay you!

You buy a currency and rate goes up the next day – if you have Rate Guard, you get paid out the difference when you process your claim. Yay you again!

In all seriousness though, there are quite a few benefits to adding Rate Guard to your transaction, besides the ultimate gain of extra dollars in your bank account if the rates change:

  • You don’t have to leave your foreign exchange to the last minute just because you have been waiting to see what the rates will do – instead you can exchange your money ahead of time and still benefit from an improved rate should the rates change
  • You can protect your travel money from market movements that are otherwise out of your control – if the rate goes down, you’ve already purchased your money at the better rate. If the rate goes up, you see the upside of that change anyway
  • You get peace of mind knowing you have won’t miss out if rates improve – with Rate Guard there is no need to worry “what if”
  • And, you don’t need to give yourself a headache trying to read historical charts, watching the news and trying to predict if the exchange rates will go up or down

All in all, it sounds like less stress and ultimately more money for you if the rates improve within the 14 day timeframe. Like I said, win-win!

It can be hard to know when you should sort out your foreign exchange because we just want to make sure we get the best deal available. It can be confusing and frustrating – especially if the rates improve soon after you’ve sorted out your exchange. At Travel Money NZ, we are passionate about foreign exchange, but we also love travel – and we want you to have the best travel experiences possible.

So, that is where we come in with our Rate Guard offer – we can’t change market conditions and we can’t predict if exchange rates will go up or down any more than you can. But, we can try to help eliminate some of the confusion and frustration that comes with exchanging your travel money, and make it easier for you to get your foreign exchange sorted out. 

If you have any more questions about Rate Guard, or would just like some help deciding on what travel money options are best for you, our FXperts are available to help! Visit them instore

 

*Terms and Conditions apply. Please read the full Terms and Conditions here. ^Exchange rate data available on http://www.travelmoney.co.nz/foreign-currency on 6 March 2017. Historical rates were available for foreign exchange transactions on the Travel Money NZ website on 1 March 2017. Rates instore may have differed.

This blog is provided for information only and does not take into consideration your objectives, financial situation or needs.  You should consider whether the information and suggestions contained in any blog entry are appropriate for you, having regard to your own objectives, financial situation and needs.  While we take reasonable care in providing the blog, we give no warranties or representations that it is complete or accurate, or is appropriate for you.  We are not liable for any loss caused, whether due to negligence or otherwise, arising from use of, or reliance on, the information and/or suggestions contained in this blog.

Janelle Strickland

Janelle has 6 years of experience working in the travel industry as a digital marketer, with the last two specialising in Travel Money. Coming from a background of Journalism and English, Janelle enjoys writing copy for blogs, websites and social media, and has written guest posts for both Cruiseabout and Travel Money NZ.