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 -- there are 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. (For more information, see "When to Go"). 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 per person for a meal, excluding wine. Even moderate to expensive restaurants charge $25 to $50 per person. Any dinner under $25 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 even more, 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 timeshare 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.

If you find the idea of unknown or extra costs intimidating, you might consider a package tour, where everything will be arranged for you. That way, you'll know the cost of your vacation before leaving home.

Small Change--When you change money, ask for some small bills or loose change. Petty cash will come in handy for tipping and public transportation. Consider keeping the change separate from your larger bills, so that it's readily accessible and you'll be less of a target for theft.

Dear Visa: I'm Off to Bermuda!--Some credit card companies recommend that you notify them of any impending trip abroad so that they don't become suspicious when the card is used numerous times in a foreign destination and block your charges. Even if you don't call your credit card company in advance, you can always call the card's toll-free emergency number if a charge is refused -- a good reason to carry the phone number with you. But perhaps the most important lesson here is to carry more than one card with you on your trip; a card might not work for any number of reasons, so having a backup is the smart way to go.

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.

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 a good idea to exchange at least some money -- just enough to cover airport incidentals and transportation to your hotel -- before you leave home, so you can avoid lines at airport ATMs (automated teller machines). You can exchange money at your local American Express or Thomas Cook office or your bank. If you're far away from a bank with currency-exchange services, American Express offers traveler's checks and foreign currency, although with a $15 order fee and additional shipping costs, at www.americanexpress.com or tel. 800/807-6233.

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) before you leave home, and be sure to find out your daily withdrawal limit before you depart. Also keep in mind that many banks impose a fee every time a card is used at a different bank's ATM, and that fee can be higher for international transactions (up to $5 or more) than for domestic ones (where they're rarely more than $1.50). On top of this, the bank from which you withdraw cash may charge its own fee. To compare banks' ATM fees within the U.S., use www.bankrate.com. For international withdrawal fees, ask your bank.

You can also get cash advances on your credit card at an ATM. Keep in mind that credit card companies try to protect themselves from theft by limiting the funds someone can withdraw outside their home country, so call your credit card company before you leave home to let them know of your travel plans.

Traveler's Checks

Traveler's checks are something of an anachronism from the days before the ATM made cash accessible at any time. Traveler's checks used to be the only sound alternative to traveling with dangerously large amounts of cash. They were as reliable as currency, but, unlike cash, could be replaced if lost or stolen.

These days, traveler's checks are less necessary because most cities have 24-hour ATMs that allow you to withdraw small amounts of cash as needed. However, keep in mind that you will likely be charged an ATM withdrawal fee if the bank is not your own, so if you're withdrawing money every day, you might be better off with traveler's checks -- provided that you don't mind showing identification every time you want to cash one.

You can get traveler's checks at almost any bank. American Express offers denominations of $20, $50, $100, $500, and (for cardholders only) $1,000. You'll pay a service charge ranging from 1% to 4%. You can also get American Express traveler's checks over the phone by calling tel. 800/221-7282; Amex gold and platinum cardholders who use this number are exempt from the 1% fee.

Visa offers traveler's checks at Citibank locations nationwide, as well as at several other banks. The service charge ranges between 1.5% and 2%; checks come in denominations of $20, $50, $100, $500, and $1,000. Call tel. 800/732-1322 for information. MasterCard also offers traveler's checks. Call tel. 800/223-9920 for a location near you. AAA members can obtain traveler's checks without a fee at most AAA offices or by calling tel. 866/339-3378.

If you choose to carry traveler's checks, be sure to 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.

Credit Cards

Credit cards are a safe way to carry money, they provide a convenient record of all your expenses, and they generally offer good exchange rates. You can also take cash advances from your credit cards at banks or ATMs, provided you know your PIN. If you've forgotten yours, or didn't even know you had one, call the number on the back of your credit card and ask the bank to send it to you. It usually takes 5 to 7 business days, though some banks will provide the number over the phone if you tell them your mother's maiden name or some other personal information. Your credit card company will likely charge a commission (1% or 2%) on every foreign purchase you make, but don't sweat this small stuff; for most purchases, you'll still get the best deal with credit cards when you factor in things like ATM fees and higher traveler's check exchange rates.

All major U.S. credit cards, including American Express, Diners Club, Discover, MasterCard, and Visa, are commonly accepted in Bermuda.

Moneygrams

Sponsored by American Express, Moneygram (tel. 800/926-9400; www.moneygram.com) is the fastest growing money-wiring service in the world. Funds can be transferred from one individual to another in less than 10 minutes, throughout the world.

An American Express phone representative will give you the names of four or five offices near you. (You don't necessarily have to go to an American Express office; in small communities, wiring locations are often pharmacies or convenience stores.) Acceptable forms of payment include cash, Visa, MasterCard, or Discover, and occasionally, a personal check. Service charges collected by American Express are $40 for the first $500 sent, with a sliding scale of commissions for larger sums. Included in the transfer is a 10-word telex-style message. The deal also includes a free 3-minute phone call to the recipient. Funds are transferred within 10 minutes, and they can then be retrieved by the beneficiary at the most convenient location when proper ID, and in some cases, a security code established by whomever provides the funds, is presented.