Money

Time is money, and because Bermuda is less than 2 hours from most cities on the U.S. East Coast, the savings begin even before you land on the island. A 4-day, 3-night vacation in Bermuda can actually include 4 days of vacation for the price of 3 nights' accommodations. An 8:30am flight from New York gets you to Bermuda in time for lunch, with the whole afternoon to play.

The variety of accommodations -- luxury resort hotels, small hotels, intimate guesthouses, and cottage colonies -- allows visitors to indulge their preferences and tastes regardless of budget.

Hotel costs also depend on what time of year you travel. If you're seeking major discounts -- sometimes as much as 60% off high-season rates -- try visiting during the off season. Off-season rates, which we've listed in this guide, are a bonanza for cost-conscious travelers -- though you're not guaranteed that it'll be warm enough to truly enjoy the beach.

Travel agents sometimes offer special packages, which can represent a substantial savings over regular hotel rates for families, golfers, tennis players, honeymooners, and others.

Dining out is an expensive undertaking. In the top places, you can end up spending as much as $80 (£40) per person for a meal, excluding wine. Even moderate to expensive restaurants charge $25 to $50 (£13-£25) per person. Any dinner under $25 (£13) per person is considered inexpensive. You might want to investigate the package plans that most of the large resorts offer, which include meals. Other ways to reduce dining costs are to pack picnic lunches, or to have your main meal in the middle of the day, at a pub. To cut costs further, families and others planning to stay for a week or more might opt for a housekeeping unit (efficiencies and apartments are available), a cottage with a kitchenette, or even a condominium (some are rented like time-share units).

In figuring your budget, be sure to consider transportation costs. Getting around the island isn't always easy, and because rental cars are not available, you'll have to rely on local transportation. With the exception of taxis, which are very expensive, public transportation is efficient and inexpensive. Options include the simple and comprehensive bus system, ferries, and bicycle or motorbike rentals. Once you reach a particular parish, many attractions are accessible on foot.

In general, athletic and cultural activities -- such as tennis, riding, guided tours, museums, and attractions -- are good values. Golfers will find that greens fees are comparable to, or less than, fees at other destinations.

Costs are relative, of course. What is affordable for one visitor is a splurge for another. In general, prices in Bermuda are comparable to those in New York, but less expensive than those in London. If you live in rural Texas, the cost of even a so-called inexpensive restaurant in Bermuda will seem expensive to you because of the added import costs attached to most food items. There are no really cheap hotels in Bermuda.

Currency

Legal tender is the Bermuda dollar (BD$), which is divided into 100 cents. It's pegged through gold to the U.S. dollar on an equal basis -- BD$1 equals US$1. For up-to-the-minute currency conversions, visit www.xe.com/ucc.

U.S. currency is generally accepted in shops, restaurants, and hotels. Currency from the United Kingdom and other foreign countries is usually not accepted, but can be easily exchanged for Bermuda dollars at banks and hotels.

It's always advisable to bring money in a variety of forms on a vacation: a mix of cash, credit cards, and traveler's checks. You should also exchange enough petty cash to cover airport incidentals, tipping, and transportation to your hotel before you leave home, or withdraw money upon arrival at an airport ATM.

ATMs

The easiest and best way to get cash away from home is from an ATM. These machines are plentiful in Bermuda. The Cirrus (tel. 800/424-7787; www.mastercard.com) and PLUS (tel. 800/843-7587; www.visa.com) networks span the globe; look at the back of your bank card to see which network you're on, then call or check online for ATM locations at your destination. Be sure you know your personal identification number (PIN) and daily withdrawal limit before you depart. Note: Remember that many banks impose a fee every time you use a card at another bank's ATM, and that fee can be higher for international transactions (up to $5/£2.50 or more) than for domestic ones (where they're rarely more than $2/£1). In addition, the bank from which you withdraw cash may charge its own fee. For international withdrawal fees, ask your bank.

Credit Cards

Credit cards are another safe way to carry money, but their use has become more difficult, especially in Bermuda. They also provide a convenient record of all your expenses, and they generally offer relatively good exchange rates. You can usually withdraw cash advances from your credit cards at banks or ATMs, provided you know your PIN. Keep in mind that you'll pay interest from the moment of your withdrawal, even if you pay your monthly bills on time. Also, note that many banks now assess a 1% to 3% "transaction fee" on all charges you incur abroad (whether you're using the local currency or your native currency).

There is almost no difference in the acceptance of a debit or a standard credit card.

Note: The Discover Card (popular in the U.S.) is not accepted in Bermuda. MasterCard and Visa, however, are generally accepted.

Chip and PIN represents a change in the way that credit and debit cards are used. The program is designed to cut down on the fraudulent use of credit cards. More and more banks are issuing customers Chip and PIN versions of their debit or credit cards. In the future, more and more vendors will be asking for a four-digit personal identification or PIN number which will be entered into a keypad near the cash register. In some cases, a waiter will bring a hand-held model to your table to verify your credit card.

Warning: Some establishments in Bermuda might not accept your credit card unless you have a computer chip imbedded in it. The reason? As noted above: to cut down on credit card fraud.

More and more places in Bermuda are moving from the magnetic strip credit card to the new system of "Chip and PIN."

In the changeover in technology, some retailers have falsely concluded that they can no longer take swipe cards, or can't take signature cards that don't have PINs any more.

For the time being both the new and old cards are used in shops, hotels, and restaurants regardless of whether they have the old credit and debit cards machines or the new Chip and PIN machines installed. Expect a lot of confusion before you arrive in Bermuda or elsewhere.

Major Change in Credit Cards -- In the interim between traditional swipe credit cards and those with an embedded computer chip, here's what you can do to protect yourself: Get a 4-digit PIN number from your credit card's issuing bank before leaving home.

Traveler's Checks

You can buy traveler's checks, which are widely accepted in Bermuda, at most banks. They are offered in denominations of $20, $50, $100, $500, and sometimes $1,000. Generally, you'll pay a service charge ranging from 1% to 4%.

The most popular traveler's checks are offered by American Express (tel. 800/528-4800 or 800/221-7282 for cardholders -- this number accepts collect calls, offers service in several foreign languages, and exempts Amex gold and platinum cardholders from the 1% fee); Visa (tel. 800/732-1322) -- AAA members can obtain Visa checks for a $9.95 fee (for checks up to $1,500) at most AAA offices or by calling tel. 866/339-3378; and MasterCard (tel. 800/223-9920).

If you carry traveler's checks, keep a record of their serial numbers separate from your checks in the event that they are stolen or lost. You'll get a refund faster if you know the numbers.

American Express, Thomas Cook, Visa, and MasterCard offer foreign currency traveler's checks, which are useful if you're traveling to one country; they're accepted at locations where dollar checks may not be.

Another option is the new prepaid traveler's check cards, reloadable cards that work much like debit cards but aren't linked to your checking account. The American Express Travelers Cheque Card, for example, requires a minimum deposit, sets a maximum balance, and has a one-time issuance fee of $15 (£7.50). You can withdraw money from an ATM (for a fee of $2.50/£1.25 per transaction, not including bank fees), and the funds can be purchased in dollars, euros, or pounds. If you lose the card, your available funds will be refunded within 24 hours.

Daily Life in Bermuda

Here are some miscellaneous Bermuda survival tips: Know that ATMs dispense only Bermuda dollars, and that buses accept only coins. Also, don't get caught in the City of Hamilton's rush-hour traffic, which is Monday to Friday 8:30 to 9am and 5 to 6pm.