Spending money abroad cheapest exchange options

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 olddirtydoggy 17 May 2022

Greetings all,

   We're now starting to look at a trip to Croatia. In the past I've exchanged some cash and finished the trip off with ATM withdrawls. I've noticed bank charges and exchange rates are now pretty dire depending on what account or card you use.

   I just caught the back end of a chat on the radio about pre-loaded Visa cards. I understand that you put money onto the card before departing and spend with it at much better rates as they are designed for this purpose. I just wondered what members here use? We are looking for a card we can use with a few currencies for perhaps 2 trips per year. Many thanks.

 jimbo85 17 May 2022
In reply to olddirtydoggy:

Transferwise (or now just wise) works for me, but I think they may have just increased their rates so maybe others know of something else better out there?

 montyjohn 17 May 2022
In reply to olddirtydoggy:

I've not used it for a couple of years, but before the pandemic the Revolut card was excellent. You can exchange for free (i.e., at the exchange price that day) and use it like any other card.

But what's the catch, at least when I was using it, there wasn't one. Revolut, as far as I can tell made theor money form vendors with transaction fees, and so do the exchange part of it for free.

Maybe somebody with more recent use can confirm this is still the case.

 Ridge 17 May 2022
In reply to olddirtydoggy:

I used my Starling bank current account card a couple of times in Portugal recently and it was pretty much bang on the current exchange rate with no additional fees.

Halifax clarity credit card is the same. Both just convert the local currency to GBP at the current exchange rate with no fees. Only difference is Starling is debit and Clarity is a credit card.

You mentioned ATMs. Many ATMs abroad will charge a fee for withdrawal, that's nothing to do with which card you use.

Also ensure your card is debited in local currency in shops etc, don't let them convert to GBP as they'll sting you.

Friends tend to use Revolut to do the same.

I quite like Starling. You get messages as soon as a purchase is made, you can disable online, contactless/chip & pin or ATM transactions selectively, or disable the card if it's stolen or lost, (and enable it again if you find it) all from the app. You can also create 'spaces' within the current account that can't be accessed by the card. So if you have £400 in your current account to go on holiday with, you could stick £350 in a 'space' and only leave £50 accessible via the card, so if it's stolen and you don't realise you've only lost £50. You can move money from the 'space' as needed in the app. I think Monzo do similar.

Post edited at 15:14
 RobAJones 17 May 2022
In reply to olddirtydoggy:

Similar to Ridge's friends, we use a mixture of Halifax Clarity and Revolt.

I think the only thing I would add is that with Revolut you are limited to only being able to withdraw the equivalent of £200 cash, from an ATM a month, on each card, without fees. 

 Bojo 17 May 2022
In reply to olddirtydoggy:

I've not been abroard for three or four years but remain more than happy with Revolut. One thing I like about it is that you can load more money via the app if you're running out although I presume you can do likewise with other similar cards.

OP olddirtydoggy 17 May 2022
In reply to olddirtydoggy:

Thanks for the replies so far and the personal message from another member. This Revolut card seems to be popping up a lot. We were wondering if the card was something you could load with UK pounds that automatically converted to the local currency when making purchases. It seems the currency needs to be converted on the card before using it to get the maximum benefit.

Seems the days of using travel agents for wads of banknotes are becoming a thing of the past. Thanks everybody so far.

 Šljiva 17 May 2022
In reply to olddirtydoggy:

I have kunas and euros in Wise accounts (top up when rates are good) and also use Monzo which gives good on the spot exchange rates from pounds  (the cards clash a bit though). Wise limits free ATM withdrawals to a not particularly useful £200 / month. Monzo is unlimited in the EU so long as you meet the terms of the account. 

Post edited at 20:44
 Kalna_kaza 17 May 2022
In reply to olddirtydoggy:

I use Monzo all the time l, especially when abroad. When using it as a card the exchange rates are essentially the MasterCard rate. The basic account (free) allows you to withdraw £200 (or foreign equivalent) cash from an ATM per month without additional charges. Above that amount it's 3% fee. The app tells you the precise amounts in both currencies.

Since using Monzo I've not bothered with exchanging at the post office etc, just not worth it.

 LastBoyScout 17 May 2022
In reply to olddirtydoggy:

Always used Halifax Clarity - gives near-perfect exchange rate on transactions.

The only catch is if you're using it to withdraw cash from an ATM, where they start charging a fee per day until it's repaid. You can avoid this by using a mobile banking app to pay off exactly what you've just withdrawn or set up a couple of delayed payments from your current account, if you can anticipate what you'll need and when. Definitely make sure the cash amounts are paid off as soon as you can.

And always pick the "pay in Euros/whatever" option, NOT "pay in £" - this means Halifax do the currency conversion, not the local vendor, who will be adding a HUGE markup.

 Ridge 17 May 2022
In reply to Kalna_kaza:

> I use Monzo all the time l, especially when abroad. When using it as a card the exchange rates are essentially the MasterCard rate. The basic account (free) allows you to withdraw £200 (or foreign equivalent) cash from an ATM per month without additional charges. Above that amount it's 3% fee. The app tells you the precise amounts in both currencies.

> Since using Monzo I've not bothered with exchanging at the post office etc, just not worth it.

Starling is very similar to Monzo, (but Monzo wouldn't give me an account for some undisclosed reason), but allows up to six ATM withdrawals per day, with a daily limit of £300 regardless of currency being withdrawn. No fees. Like Monzo they use the MasterCard exchange rate for foreign transactions.

 Rob Exile Ward 17 May 2022
In reply to Kalna_kaza:

Another vote for Monzo, the app is so good I'm using it here all the time as well as abroad.

 Martin W 18 May 2022
In reply to olddirtydoggy:

> Thanks for the replies so far and the personal message from another member. This Revolut card seems to be popping up a lot. We were wondering if the card was something you could load with UK pounds that automatically converted to the local currency when making purchases. It seems the currency needs to be converted on the card before using it to get the maximum benefit.

A new entrant in the market is Chase, which is offering a current account with a debit card that has no fees for foreign transactions, and which is paying 1% cashback for the first 12 months (with some exceptions).  You don't have to use it as your day-to-day current account, or switch your existing current account to it - you just open it and put £££ in.  No need to convert to another currency to use it abroad, just use it as normal (making sure not to accept the "pay in sterling" option, as noted by LastBoyScout) for payments and ATM withdrawals, and you get the exchange rate on the day with no fees.  Because it's a debit card there's no interest to accrue.

I've just signed up for an account for my upcoming holiday in Portugal: I'll likely use it mostly for ATM wirthdrawals, sticking to my Halifax Clarity card for retail transactions.

It is an app-only account i.e. no desktop web app or paper statements.  Some people aren't comfy with that.  In my very limited experience to date their telephone helpline is very responsive and very helpful.

There's also a linked easy access savings account that pays a decent interest rate.

https://www.chase.co.uk/gb/en/product/chase-account/

 Sam W 18 May 2022
In reply to olddirtydoggy:

I've used Revolut for a few years and like it.  One comment from our trip at April, they now charge an exchange fee of about 0.5% at weekends, but it's still free during the week.

>We were wondering if the card was something you could load with UK pounds that automatically converted to the local currency when making purchases. It seems the currency needs to be converted on the card before using it to get the maximum benefit.

The card is loaded through the app using one of your existing UK bank cards.  You then convert this to foreign currency in the app.

If you do go with Revolut get a referral code from someone before signing up, happy to send mine if you don't have one from somewhere else

OP olddirtydoggy 18 May 2022
In reply to olddirtydoggy:

Quite odd but I read on some websites that Revolut uses Visa yet I can't find any reference on their website to confirm this. My reason for asking is I don't want to try to pay for a room with the card and get told it's not an accepted card.

Monzo is uses Mastercard, I can see this clearly on the website.

Wondering if I'm having a thick moment here. Thanks again for all the help.

OP olddirtydoggy 18 May 2022
In reply to olddirtydoggy:

Another question on the Monzo. I get the impression it works a bit different to Revolut, the Monzo is more like a bank account and the currency doesn't need converting into the local one before travelling? It seems you just travel and pay and Monzo will exchange at Mastercards current wholesale rate.

I just compared the rates Revolut vs Monzo and the Monzo rate was fractionally better. I'm sure at times this will switch.

Just need to make sure I don't overthink this.

 DaveN 18 May 2022
In reply to olddirtydoggy:

I set up a monzo account a few years ago for this purpose (based on the recomendation of a friend who`s very canny with financial stuff).

Seems to work Ok for my purposed (though I`ve not used it abroad for a couple of years), from what I remember it was fairly straightforward to set up as well- all done through the app (photo of driving licence etc.

 Sam W 18 May 2022
In reply to olddirtydoggy:

> Quite odd but I read on some websites that Revolut uses Visa yet I can't find any reference on their website to confirm this. 

Just checked my Revolut card, definitely Visa

 Šljiva 18 May 2022
In reply to Kalna_kaza:

If you pay in £500 a month (can move it straight back out) and set up one direct debit, Monzo’s ATM withdrawals are unlimited in EU. 

 Šljiva 18 May 2022
In reply to Kalna_kaza:

If you pay in £500 a month (can move it straight back out) and set up one direct debit, Monzo’s ATM withdrawals are unlimited in EU.  Caxton is also good re ATMs and more globally but the rates, which used to pretty much be the best,  aren’t quite as sweet as the new entrants manage. 

In reply to olddirtydoggy:

+1 for Halifax clarity, unless you really need to use paper cash.

I wouldn't rush to use it to withdraw cash; using credit cards for that can do interesting things to credit score. For cash I've always found it's best to pre-order at travelex or similar (via Quidco) and pickup at the airport, but MSE will know best. It's been a long time since I've used anything but a card.

Post edited at 20:08
 Ridge 18 May 2022
In reply to olddirtydoggy:

> Another question on the Monzo. I get the impression it works a bit different to Revolut, the Monzo is more like a bank account and the currency doesn't need converting into the local one before travelling?

 

The newer banks (Mozo, Starling etc) pretty much all work like that.

For example I recently went to Portugal, the money in my Starling account is all in GBP.

I bought a train ticket from the airport for 2.60 Euro, used my debit card and my account was debited by £2.22. When I look at my transactions it states that I made an international payment at a rate of 1.1712 euros to £1.

Edit. It's seamless, your bank recognises the foreign currency debit, it converts it to GBP and debits that amount from your account.

Post edited at 21:21
 Martin W 18 May 2022
In reply to Longsufferingropeholder:

> +1 for Halifax clarity, unless you really need to use paper cash.

> ...but MSE will know best.

And MSE currently rates Chase as the top debit card for use abroad:

https://www.moneysavingexpert.com/credit-cards/travel-credit-cards/#debit

They don't mention Monzo at all, probably because ATM withdrawals abroad over £250 in a 30 day period incur a 3% fee unless your Monzo account is your main bank account, or you pay extra for one of their premium accounts.

Starling Bank comes second on the MSE list after Chase, although it looks to me from MSE's summary table as if their ATM withdrawal limits are less restrictive than Chase's.

 nniff 19 May 2022
In reply to olddirtydoggy:

We use a Post Office card.  Works well and the rates are reasonable and you can top it up by mobile phone whenever you need.  No fees for paying or withdrawing cash.  £50 minimum top-up

Cuba - now that's a different story, although we did use it for paying for some stuff in dollars in a big hotel.  There, cash is king, in units of hard currency (dollar, sterling or euro, and all are mostly treated as equal).  Mind-numbing complexity, because you change your hard currency on the street rather than a bank.  A bank will give you 30 pesos/£1, but on the street you'll get between 80 and 115.  Sometimes, prices are converted from $ to pesos, at the official rate and so if you pay cash you get things at over a third of their list price if you did a good deal.  You can pay in $ on a card in large hotels, but not if it's an American card.  Some Government facilities (like national parks) only take payment on a card in hard currency.  Never counted our cash so frequently or carefully!

 Dave B 19 May 2022
In reply to olddirtydoggy:

Look at curve and see if it's useful to you at all 

 Trangia 19 May 2022
In reply to olddirtydoggy:

I use a Tesco Cash Card. You have to preload it the currency you need, otherwise you can use it just like a debit or credit card, for which there is no additional charge for using it in the foreign currency other than the exchange rate applied when you load it. 

 Chris Haslam 20 May 2022
In reply to olddirtydoggy:

Another Halifix Clarity user here. Keep it only for travel purposes. Works a treat in EU and USA for payments and cash withdrawal and, in fact i mostly use it via Google Pay. Got 2 cards so my wife has one. Pay it off ASAP to avoid interest, use minimal cash. 

I'd be lost without MSE for daily financial advice  

OP olddirtydoggy 21 May 2022
In reply to olddirtydoggy:

Thanks very much for all the help on here, there is no better way of getting advice than direct public feedback. We've gone for the Monzo card as it will have a second use other than the trips away. Many of the suggestions for other services were just as good. Ta ta.


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