Will your holiday money Costa lot this summer?

There’s a world of difference in exchange rates.

Brits heading off on holiday face a currency postcode lottery. High street chains are offering different exchange rates, depending on their location.

Our probe found huge regional variations with holidaymakers having to pay through the nose if their town has little or no competition among bureaux de changes. Some disparities were so large the amount saved could pay for a family meal out.

Helen Saxon, of consumer website Money Saving Expert, said: “The size of the difference is surprising. It highlights what people going on holiday should do shop around.

“Rates in bureaux de change vary hugely. That’s driven by local competition and company policy.”

We looked at the exchange rate offered in six towns and cities in Scotland and the north of England last week. We asked to buy £500 worth of euros and dollars.

But out of the four suppliers we looked at, Thomas Cook, the Cheque Centre, the Post Office and Marks & Spencer, only one offered the same rate at all their stores.

All of Marks & Spencer’s outlets in Dundee, Glasgow, Perth, Aberdeen, Carlisle and Newcastle offered €1.1262 and $1.4787 to the pound.

That meant our £500 netted €563 and $739.

The other stores offered a mishmash of tariffs which appeared to be driven by the proximity of their competitors.

The best and worst rates were offered by the same chain Thomas Cook.

In their Northumberland Street store in Newcastle, we were offered a paltry exchange rate of just €1.0656 to the pound. That gave us just €533 for our £500.

But in City Square, Dundee, in the heart of fierce competition, we got a rate of €1.15 to the pound, so we pocketed €575. That’s a difference of €42.

Similar variations were found in their dollar rate.

In Dundee, £500 got $748 but in Newcastle it got us $693. In Post Offices we were offered €555 in Newcastle, Carlisle, Dundee and Perth for £500 but in Glasgow and Aberdeen we got €567.

For dollars it was the same story $720 everywhere except Glasgow and Aberdeen which was $739.

In Cheque Centres we were offered a different rate in every shop, but it only worked out a few euros and dollars of a difference. It ranged from €573 to €571 and $740 to $745.

Our findings found the best overall city for euros was Glasgow where £500 got you, on average, €568.5. That was followed by Dundee (€566.5), Aberdeen (€566.25), Perth (€566), Carlisle (€565) and finally Newcastle (€556)

For dollars it was Glasgow ($740.75), Aberdeen ($740), Dundee ($738), Perth ($736.5), Carlisle ($731.75) and Newcastle ($723).

A spokesperson for Thomas Cook said, “To ensure we give our customers some of the very best rates, the foreign exchange bureaux in our stores offer local rates so they can compete with other high street currency providers.

“For our best rate, we recommend reserving online for home delivery or collection in one of our high street stores.”

A spokesman for the Cheque Centre said: “We’re one of the largest providers of foreign currency on the high street.

“We find that customers are smarter about buying their travel money before they reach the airport, and aren’t willing to just accept their bank’s rate.

“We track our rivals daily in order to deliver the best price. That means rates will vary from store to store.”

Top Tips

Shop around online. Use comparison sites. Some calculate the rates of up to 40 different outlets to find the best rate.

Go to places where you know there is a lot of local rivalry. A competitive High Street spells better returns.

Avoid airports bureaux de change like the plague their rates are hopeless. If you have no other option phone up and book ahead ensuring you get a better rate.

Some providers like M&S and Thomas Cook provide better rates for existing customers. If you have store cards or have booked your holiday through them see if that entitles you to a better deal.