An estimated 920,000 summer packages have been sold to Irish holidaymakers this year, most of them to European destinations. Many more people will travel independently or on business and all will have to pay for goods and services in foreign currencies.

In the last-minute dash before going abroad, it's easy to overlook planning for spending money. If you find yourself working out how much you need in cash and travellers cheques at the foreign exchange counter in the bank, you'll probably pay for being disorganised.

Travellers who plan and manage their spending money properly for foreign trips can save a considerable amount on charges. It doesn't take too much effort, just a little thought in advance to make the best use of the options available.

From January 1st next year, travelling in the 12 countries of the euro zone will be made easier as we will all have the same notes and coins. In the meantime, the cost of exchanging euro currencies here remains high - with one exception so far. Indeed, Irish banks are among banks in up to seven countries whose foreign exchange charges are being investigated by the EU.

Last week, Ulster Bank reduced charges for customers for the exchange of euro zone bank notes to 1 per cent with no minimum fee. Most institutions charge between 2 and 4 per cent. Ulster Bank is going one step further by abolishing these euro currency charges from October 1st for amounts up to #1,250 (£984).

The Ulster Bank charges are unmatched by any other institution and will save customers handsomely over the next seven months. Why pay 3 or 4 per cent on the same transaction in a bank next door?

You may not have to - at least one other financial institution is understood to be examining its charges with a view to reducing them along the same lines.

Although it comes very late in the day before the euro changeover, the Ulster Bank move is a trigger for real competition and it's no coincidence that it happened as the European Commission nears the conclusion of its investigation into tariff fixing on currency exchange in seven EU states.

Exchange rates for euro-zone currencies have been irrevocably fixed since the introduction of the euro in January 1999, taking the risk costs out of exchange for financial houses. Banks and bureaux de change still charge commission and handling fees however.

At the beginning of this month, the Commission dropped charges against Ulster Bank and a number of Dutch and Belgian banks. In a statement, the Commission said its decision had been prompted by the banks individually deciding to lower their fees and provide the service free later this year.

The remaining six Irish banks under investigation since last July - Bank of Ireland, AIB, TSB Bank, Irish Life & Permanent, National Irish Bank and ACC Bank - are not off the hook yet.

"The Commission remains determined to pursue all anti-competitive practices in the financial sector even after the introduction of the euro," European Competition Commissioner Mr Mario Monti said recently.

In the meantime, there are holiday arrangements to be made. The European Consumer Centre (ECC) advises holidaymakers to look beyond cash for their spending-money needs. Lodging money into your credit card account before going on holiday in Europe is a safe and effective option, according to the ECC.

If the card is in credit, you will be able to withdraw cash from euro-zone ATMs without incurring a commission charge. It will usually be necessary to bring some cash to cover the costs for the first day or so until you get your bearings. The rate of credit card ownership is increasing in the Republic, but this payment tool is still only held by a minority of Irish consumers, slightly less than one in four. Not all credit card accounts are paid off every month and it's important to be aware of the cash-advance fees for each withdrawal when a card is not in credit.

ATM cards are more commonly held and you may be able to use your card at thousands of cash points abroad, at a price, depending on which ATM schemes your bank is a member. Remember to enquire before you go whether your card is widely accepted in the country you are visiting. AIB ATM cardholders have access to withdrawal facilities from 200,000 ATMs in Europe, some 133,000 of these are within the euro zone. The bank charges a flat fee of £3 per withdrawal in the euro zone and 1 per cent of the value of the transaction elsewhere, subject to a minimum of £1 and maximum charge of £5. It's worth bearing in mind that AIB offers customers over the age of 60 and students commission-free purchase and exchange on all foreign currency transactions.

Bank of Ireland ATM cards with the Cirrus logo can be used to withdraw cash from 600,000 machines in 90 countries. A customer may withdraw £200 per day or £500 per day subject to prior approval with the branch.

The charges are 3.5 per cent of the amount of the withdrawal, subject to a minimum of £2.50 and a maximum of £9.00.

Withdrawal facilities for Ulster Bank and National Irish Bank ATM cards are available in Britain only. There are no additional charges for this service, although the local bank may charge a fee. The customer can expect to be notified of this during the transaction. For those who prefer to stick to cash and are determined not to pay commission in the euro zone, the network of central banks in the participating countries is at their disposal. The central banks of states participating in the euro will exchange notes free up to daily limits. If you do not spend all your money on souvenirs and entertainment, ensure you check what the buyback policy is of your bank or building society. You really should not be paying commission both ways, so don't forget to keep your receipts.