7 Travel Money Tips For Your Next Holiday
Travelling for leisure is an exciting investment, one which we like to anticipate and plan thoroughly. However, scheduling your museum visits, best dining spots, intriguing historical hotspots and all the touristy activities that come to mind, all lead to an interesting issue: how to handle your travel money when you are abroad.
Should you use cash or cards? Who gives the best exchange rates and where can you see the latest currency rates? Plenty of other questions may arise when planning a trip and the sooner you have an overview of the best practices, the further you may be able to stretch those travel funds.
This blog will provide you with some universal tips on how to avoid unnecessary expenditure and how to keep your money safe when abroad.
The first rule is proactivity! Don’t wait until you are sitting comfortably in the plane to decide how you are going to approach the matter. Find the time before your trip to go over the features of your various cards and choose to use the one with lowest fees. You don’t want to be caught by surprise when you see those international transaction fees when you get home. The cash advance fee is another type that might occur and take away from your vacation money that you worked so hard for. These are fees that apply when you withdraw money from your credit card at ATMs. In these situations, the interest becomes effective immediately and you do not have an interest-free period.
Check the expiration date of your cards before you leave your home country as it could be very difficult to get a replacement when you are abroad.
Now, forget everything that we said about cards and simply use your smartphone. This is one of the safest ways to avoid jeopardising your card safety and data. You can use digital wallet such as Apple Pay or Google Pay.
One of the main concerns travellers have is fraud exposure. Thus the popularity of prepaid travel cards is increasing as it protects your primary bank account. Prepaid cards have low withdrawal limits though, so you might get stuck without enough money at the end of your exciting day. Furthermore, travel cards may have a reload delay of up to 3 days if they are even reloadable to begin with. This could, of cours cause very uncomfortable situations during your trip.
Something as simple as installing internet banking can save you a lot of trouble if you run out of money and you have no way of transferring funds to your card. But be careful how you use it. Avoid public Wi-Fi networks to decrease the risk of your data being stolen.
When it comes to cash, foreign exchange rates are a tricky subject. Do your homework beforehand and do some research on the destination you are going to visit. You can check the exchange rates online and plan on your budget accordingly.
If you are coming form a country with a well-established currency such as Euros or US dollars, exchange rates are usually better outside of your home country. And of course, do not even consider exchanging cash at the airport as your funds will suffer very unfavourable rates.
Even though cash comes with a lot of concerns and possible issues, it is good to have local currency on hand, as there are destinations where this might be the predominant method of payment.
When it comes to withdrawing money from ATMs, never accept conversion of currencies as the exchange rate would definitely not be beneficial for you.
You might also want to read our blog on Challenger Banks: Niche is the New Black