Spending Money in US - Not enough time to wait for Nationwide Card to Arrive

niftythrifty_2

Hi everyone!

I am new to MSE so please be gentle with me! From what I have gathered on here it's best to use Nationwide plastic in US than any other means...I have applied for the Classic Credit Card but there's no way it's going to be here in time for my holiday :think:

I basically need about £500 in spending money - am I best to use my HSBC debit card instead of buying foreign currency (from Travelex)? Has anyone done this recently? Credit card wise, how does Mastercard fare on purchases?

Sorry if this is all old news....

grumbler

niftythrifty wrote:

how does Mastercard fare on purchases?....

Information on tariffs on our current accounts
Information on tariffs for HSBC Premier Bank Account.
The rate used for currency conversion (and for calculating 2.75% and 1.5% fees) is close to the interbank rate (see http://www.oanda.com/).
Compare with Travelex yourself. See also last posts in How to buy travellers cheques or foreign currency thread.

I basically need about £500 in spending money

For $1000 you can try American Express Travellers Cheque Card. Rates are not good, but they offer $75 incentive now: American Express Travellers Cheque Card .

EDIT: oops ... for HSBC credit card see HSBC Bank Credit Card Summary Box (PDF, 34K) - the same 2.75% on purchases.

KTF

When is the holiday? Nationwide processed my application for their cashback card in under 2 weeks.

niftythrifty_2

Going in a few days! I applied to them last week and it was approved, but guess the follow-up stuff takes ages....

KTF

Ah... before I got the Nationwide card I always used Travelex for foreign currency as their rates seemed to be the best whenever I bought them and you can pick up the cash at the airport using their prebooking service.

niftythrifty_2

I am wondering if £500 is probably too much to get all in cash? It doesn't seem too safe an idea to take that all like that...perhaps £250 would be better.

KTF

Whenever I have gone on hols I have taken all the cash out in a lump sum and then left it in the safe in the hotel/room.

Each day I would then top up whatever was left in my wallet to say 50$ or 50€ or whatever I felt was a 'reasonable' amount to spend that day. Granted, its maybe not the 'safest' option but it hasnt failed me yet.

Since getting the Nationwide account I just go to the cashpoint everyday instead and top up as needed.

niftythrifty_2

I think I'll probably order money with Travelex and pick it up at the hotel.

newfoundglory

niftythrifty wrote:

I think I'll probably order money with Travelex and pick it up at the hotel.

Is it really worth taking all that in cash? what happens if you lose it?

The way i see it is this... if you have a nationwide card, all well and good. But for the sake of saving 13 or £14 in charges, is it worth taking it all in cash? Isn't it worth just taking SOME of it in cash, and use the card for the rest for safety (even though its going to cost you). Eg. 250 in cash, 250 using the card is gonna cost less than £7 at 2.75%... surely thats worth the safety it provides? At the end of the day you are paying for a service...

Rafter

The HSBC debit card shouldn't be too bad. Yes you will pay the 2.75% loading, but the rate used will often be better than Travelex and as long as you withdraw a reasonable sum, the £1.50 charge is spread fairly thin.

I have yet to go anywhere where the airport didn't have a cirrus/maestro/visa machine within 50 yards of arrivals to get money straight away.

£500 in say 2 withdrawls from HSBC is going to cost you £16.75 in charges from HSBC (13.75 added to the exchange rate and 2 x 1.50 withdrawl fees). At todays exchange rate of 1.76 you will get $850 after charges for your £500, if made in two withdrawls.

Travelex online are currently quoting 1.702 which will give you $851 for the same amount - a $1 difference.

Personally I would get $250 at the airport from travelex and then do your spending on debit or credit cards when you get there. The effective rate on a credit or debit card is 1.711 after the 2.75% fee versus 1.702 for travelex - so you can just beat the cash rate. Just watch out for current accounts that are adding £1.50 charges to all foreign transactions - not just cash though.

Have a great trip.

R.

niftythrifty_2

Thanks so much Rafter and newfoundglory - you've allowed me to put the whole situation into context! The HSBC cash withdrawal fee is £1.75, not £1.50 - but that's not much difference...