A guide to getting your money when your overseas
Now you would think getting access to your own money whilst travelling would be a relatively simple thing to do in this modern, linked up world. Well the good news is that it is easy, the bad news is that the banks have decided that you need to pay an excruciatingly large sum of money for this pleasure. Happily there are several ways to beat these banks fees and ensure you get the best bang for your buck.
Pre-paid credit cards - the perfect travel card
Prepaid travel cards are now the most cost effective way to have easy access to your money whilst travelling. They work exactly like a credit card but you load it with your own money to start with, so theres no paying interest on what your spending. Easy to top up online, they have a fixed limit if stolen (only what you have loaded the card with, although in most cases they will refund the balance on the card to you) and very low or no fees on withdrawal. The best cards I've used are the FairFX and Caxton and if your planning to travel only in the US or Europe then you may consider the US$ or EUR cards (both FairFX and Caxton have these) but otherwise I recommend the Anywhere (FairFX) or Global Traveller card (Caxton) because you can use them anywhere and the money remains in pounds (£) on the card until you withdraw and when you withdraw you are given the exchange rate on the day between the pound and the currency you are withdrawing.
As a bonus, Ryanair will not charge you a card fee if you use any of the pre-paid credit cards (currently £5 per person per way) - so definitely worth getting a card just to avoid paying unnecessary Ryanair booking fees if not for any other reason!
As a bonus, Ryanair will not charge you a card fee if you use any of the pre-paid credit cards (currently £5 per person per way) - so definitely worth getting a card just to avoid paying unnecessary Ryanair booking fees if not for any other reason!
Anywhere Card - The FairFX Anywhere Card is the latest addition to the FairFX Prepaid MasterCard® family. Just as the name suggests, use it anywhere - in any country, in any currency and with any vendor displaying the MasterCard® acceptance mark! It's essentially a FairFX Prepaid MasterCard® in Pounds Sterling, with funds being converted to the appropriate currency at the point of sale. Unlike some of their competitors, FairFX don't mark up the prevailing interbank exchange rate!
The standard card fee if you go directly to the FairFX site is £9.95 for initial loads under £500 (if you click through from here they will waive this fee)
A 1.4% charge is made on international or UK point of sale transactions. International ATM withdrawals also incur a £1 charge. UK ATM withdrawals incur a flat £1.50 charge (no additional 1.4%).
Even better, if you click through this link, then the good people at Fair Fx will waive the £9.95 fee* - what are you waiting for!
* Subject to a minimum load of just €10 or $20 which is added to the card balance
The standard card fee if you go directly to the FairFX site is £9.95 for initial loads under £500 (if you click through from here they will waive this fee)
A 1.4% charge is made on international or UK point of sale transactions. International ATM withdrawals also incur a £1 charge. UK ATM withdrawals incur a flat £1.50 charge (no additional 1.4%).
Even better, if you click through this link, then the good people at Fair Fx will waive the £9.95 fee* - what are you waiting for!
* Subject to a minimum load of just €10 or $20 which is added to the card balance
Caxton
GLOBAL CARD
If you're travelling outside of the Euro and USD zones, or even to multiple destinations including Europe and the US, this could be the card for you. A truly global card, it can be used in any country, with any currency, and with any vendor displaying the MasterCard Acceptance Mark. There are no ATM charges when overseas and no fees, commission, or extra charges on your transactions, meaning all costs and charges are included in the exchange rate supplied
Simply load the card using your UK debit card either online, over the phone, or via text. The balance remains in Sterling at all times. Funds are converted live to the appropriate currency at the point of a sale, including ATM's, giving you the flexibility to use it globally.
And again, because it is a MasterCard card it can be used anywhere you see the MasterCard Acceptance Mark, whether in a store, online or at an ATM. The exchange rate applied is fixed at 2.5% from the prevailing interbank rate and it is chip and PIN Secure.
If you're travelling outside of the Euro and USD zones, or even to multiple destinations including Europe and the US, this could be the card for you. A truly global card, it can be used in any country, with any currency, and with any vendor displaying the MasterCard Acceptance Mark. There are no ATM charges when overseas and no fees, commission, or extra charges on your transactions, meaning all costs and charges are included in the exchange rate supplied
Simply load the card using your UK debit card either online, over the phone, or via text. The balance remains in Sterling at all times. Funds are converted live to the appropriate currency at the point of a sale, including ATM's, giving you the flexibility to use it globally.
And again, because it is a MasterCard card it can be used anywhere you see the MasterCard Acceptance Mark, whether in a store, online or at an ATM. The exchange rate applied is fixed at 2.5% from the prevailing interbank rate and it is chip and PIN Secure.
Debit & Credit Cards
Unless you use a very special atm debit card or credit card to access your cash, the banks rub their hands in glee ever time you go near a cash machine or make a purchase. For the first few trips I took I had an Royal Bank of Scotland (UK) card and got hit with the ERTF Exchange Rate Transaction Fee) + 2% - .where the ERTF is the prevailing exchange rate plus a transaction fee of 2.75%. This comes to close on 5% not taking into account that you probably got a poor exchange rate in the first place. This is a very expensive way of getting to your own money!
These charges to change from bank to bank. Nationwide used to waive all charges for foreign transactions but last year changed their fee structure, and now only have fee free transactions in Europe, though they claim to only pass on any charges they incurred from the foreign bank in providing you with the cash.
These charges to change from bank to bank. Nationwide used to waive all charges for foreign transactions but last year changed their fee structure, and now only have fee free transactions in Europe, though they claim to only pass on any charges they incurred from the foreign bank in providing you with the cash.
Cash - Exchange money
Cash is king, however in this day and age, the king is dead. Long live the new king, prepaid plastic. You can still get foreign currency at a money exchange in the local high st and some of these companies give quite reasonable rates. Pre-ordering for collection is often cheaper than just turning up:
The Post Office
| • | 0% commission with competitive exchange rates (today's exchange rate £1 = 1.114EUR) |
| • | Buy from your local branch (12,000 locations across the country) or order online (minimum order value of £500) and collect from your local branch or arrange home delivery (for free!) |
| • | No cash advance fee or handling fee when you use a Post office credit card to buy |
Best Foreign Exchange
| • | 0% commission with even more competitive rates (todays exchange rate £1 = 1.138EUR) |
| • | Order online to get the most competitive rate and then pick up from four London locations (Strand, Victoria, Hammersmith or Liverpool St) |
Tesco
| • | Again 0% commission and a competitive rate (todays exchange rate £1 = 1.122EUR) |
| • | Order online to get the best rate, free delivery for orders over £500 (£1.99 or £3.99 delivery charge for smaller orders) or pick up in-store at 130 Tesco locations |
| • | Next day delivery for orders placed before 2pm Mon-Thurs |
| • | Tesco will match any better exchange rate found within 5 miles of an in-store Travel Money Bureaux |
| • | No cash advance or handling fee if bought with a Tesco Credit Card |
Cash is fine if your going to Paris for the weekend, but I for one wouldn't want to be carrying a $1000 of Mexican pesos in a dark alley in Ciudad Juarez. I'm not that brave..nor can I run that fast. To me it would seem just a good way to make an involuntary donation to a local criminal fraternity. And remember you may be charged a cash advance fee when purchasing foreign currency online using a credit card apart from those exceptions as stated. Check with your credit card provider.
Travellers Cheques
The dinosaurs of the travel money. Hard to change, incur fees and guaranteeing one of the worse conversion rates, recommended only for those who like to live in the past, think cameras still need film and the world was a better place in 1972. If you are still set on buying travellers cheques then the Post Office, Best Foreign Exchange and Tesco above will all do travellers cheques but charges do apply.
Transfer Money to or from an international bank account
If your planning on staying somewhere a long time then it may make sense to open an account where you are. Then you may want to transfer money to a new account, or back to your main account. But whatever you do, don't use your bank to transfer money to or from your overseas bank account. Not only will they charge you a fee of something around £25 but they will also sting you on a poor exchange rate. There a number of service that will transfer you money directly to or from your UK bank account much cheaper.
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