The cheapest ways to take money abroad.
You probably would be the type that travels abroad either for Vacation, business, visit or permanent relocation. And the question could arise as this, What is the cheapest way to take money abroad?
In this write up I will talk about the major ways to take money abroad. This is through credit cards, debit cards, and cash. And I will look at the costs of each and whether or not they’re the best options for you.
1. Credit Cards
Often regarded as the best way to pay abroad, credit cards can be conveniently used in a foreign country in just the same way as you would in your home country at a (sometimes) almost relatively low cost.
This is due to the fact that in almost all countries your Visa or Mastercard credit card will be supported at card machines and ATMs in practically the same way as it would while you’re at home that is the truth.
And while this can make your credit card a convenient way to take money on holiday. It’s for you to be aware that it can sometimes come at an expensive cost, as the card issuer, merchants, and your bank, might all levy various fees charges. Many of this would be bypassed by using a travel card.
Now, for example, when using a Visa credit card abroad, you’ll be subject to Visa’s exchange rate margin for converting currency, which usually ranges between 1.00% and 3.50% of the transfer value. And this depends on the currency pair.
Mastercard’s margins are similar, ranging from 1.00% to 3.00% depending on the currency pair too. This comes as the base conversion rate, with banks and merchants often levying their own fees on top of this conversion adding to the cost.
To tell you that credit cards are one of the best options to take money abroad. More especially if your bank doesn’t charge additional fees for use abroad or if you’ve gotten a lot of rewards, cashback, or travel miles associated with your card.
2. Using a Debit Card
When compared to credit cards, debit cards offer a convenient way to take money abroad and spend it overseas.
However, the problem is that they’re not always supported everywhere, and whether or not they’re cheaper than a credit card can differ quite considerably from debit card to debit card.
I don’t recommend using a debit card for overseas spending unless the card is specifically geared toward that purpose. This is because debit cards tend to be more limited while using it abroad. It allows only card purchases and ATM withdrawals. You see, this can make them tricky when it comes to car rental, when compared to credit cards.
3. A Travel Card
A Travel card can be any debit card, credit card, or prepaid card offering that’s geared specifically toward international travel. A Travel Card is meant for international travel. With this fintechs and challenger banks typically offer the most competitive offerings in this category.
They usually include no maintenance fees, no foreign ATM withdrawal fees, no payment fees, and no fees for online transactions. Some even include fully-fledged multicurrency account features to it use.
Below are a few of the top travel card recommendations by region and destination;
From the UK, travelling to France: We recommend the Wise Multi-Currency Account if you plan to withdraw often at an ATM and Revolut if you plan to spend mostly using card payments. If you plan to spend only using your card and not withdraw from a foreign ATM, then Monese is your best bet.
From Germany, travelling to the UK: We recommend Dutch neobank Bunq if you plan to spend only in cash through foreign ATM withdrawals and German challenger bank N26 if you plan to spend only using card payments. If you plan to spend through a mix of ATM withdrawals and card payments, then Monese is a good option.
4. Buying Foreign Banknotes
Picking up a stack of foreign banknotes before a trip abroad is often an exciting first step in any overseas holiday. While many people exchange money at airports and at bureaux de change at foreign cities Both of which tend to come along with poor exchange rates — others prefer to collect money from their bank or currency exchange provider.
5. Withdrawing at Foreign ATMs
ATM withdrawals internationally can be pricey and expensive. It leaves travellers short for every unit of their home currency withdrawn abroad. Withdrawal fees typically range from US$2.00 to US$5.00 per withdrawal in addition to the fees that banks already usually charge for the services.
Finally for the people that has the intention of travelling abroad either for one reason or the other the above are the cheapest ways to Take money abroad.