Wondering how to use travel cards and currency to get more out of your budget? Our top tips will help to keep your holiday spending in check
Keeping track of your spending can be stressful as it is, never mind when you’re travelling. With exchange rates, bank fees and shared spending to consider, it’s easy to feel like you’re losing control of your holiday budget. Worry no more. With our top travel card and currency tips, you’ll be able to stay on top of spending – and save money, too.
1. Keep an eye on exchange rates
If you don’t want to overpay while using travel cards and currency, you need to know the exchange rate. If mental arithmetic isn’t your strong suit, there are plenty of apps to choose from. One of the most popular is XE.com. It’s free, and shows exchange rates based on real-time data. If you don’t want to download an app, you can also type your exchange into Google. The search giant’s built-in currency calculator is also super accurate, and easy to use. Bear in mind you’ll need Wi-Fi or mobile data to access search, so an app that works offline is better to avoid extra data charges.
2. Use pre-paid multi-currency travel cards
Prepaid cards – like Revolut, Wise and the Travelex money card – are a great way to keep on top of your budget. They also help you to avoid pesky overseas transaction fees that some banks and card providers charge. You simply top them up with money before you go, and that’s it. There’s no overdraft so there’s no risk of accidentally going into debt, and you can simply top them up when you need to.
3. Use reward debit and credit cards to pay for essentials
Some debit and credit cards, such as Chase and Amex, offer cashback on purchases. Using one of these cards to book your flights, car hire and hotels can give your holiday budget a nice little boost. Bear in mind that credit card fees apply if you don’t pay the balance off in full, so transfer money as early as possible to avoid being stung by the interest rates.
4. Check your bank fees
One of the biggest additional costs from travel cards and currency is foreign transaction fees levied by your bank. Before taking your card on holiday with you, have a read through the small print. Look for ‘no foreign transaction fees’ on credit cards, and ‘low or no foreign transaction fees’ or ‘no ATM fees’ on debit cards. If your bank does charge, it might be worth opening a new account just for travelling. At the time of writing, Starling Bank, Chase, Revolut and Monese are among the banks offering free overseas cash withdrawals and card transactions.
5. Pay in the local currency – even when using a card
Once you’re on holiday and pop your card into the reader or ATM, you’ll be asked which currency you want. Rather than trying to work out the exchange rate, we recommend always going the local currency – euros in Spain, or dollars in the USA. Research shows that this almost always works out cheaper because Visa or Mastercard set the exchange rate. This is usually more favourable than using the rate set by the merchant or local bank.
6. Avoid airport exchange rate kiosks
It might be handy to convert your money at the airport, but the exchange rates are among the worst. Either plan ahead and order your travel money a few weeks in advance, or just wait until you get to your destination and head to an ATM. Just make sure your card provider doesn’t charge an ATM fee for overseas withdrawal, and select the local currency rather than sterling.
7. Avoid private ATMs
While we’re on the topic of ATMs – avoid the privately owned ones! These are usually brightly coloured and placed in handy locations, like inside shops or in busy areas. They also tend to charge a few quid for withdrawals. To avoid paying this extra fee, look for local banks. They have their own ATMs that don’t usually charge a fee for taking out your money. It may mean walking an extra few minutes, but it’s definitely worth it.
8. Exchange larger amounts at once
Some travel money providers offer better deals if you’re converting more cash. Rather than exchanging a random number, it’s worth sitting down and writing a budget. Think about how much you’re realistically going to spend. As well as meals and souvenirs, factor in little expenses like taxis and trips to the local supermarket. This way you won’t have to keep nipping to the cash machine or bureau de change during your trip, and you’ll get a better deal. If you’re travelling with a group of friends, you can get the best deals by teaming up and exchanging all of your money together.
BONUS TIP: donate foreign coins to charity before flying home
You can only exchange notes back to sterling, so rather than having a wallet full of foreign shrapnel, give it to charity. It may not be a money-saving tip, but it’ll make a difference and give you a little boost for doing something nice. Most airports have donation boxes, but keep an eye out during your holiday for places you can give to.
Read more in our Travel Hacks Hub
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