How to buy travellers cheques or foreign currency

MarkyMarkD

How is it a rip-off not to offer commission-free buy back? The companies which DO offer this charge "rip-off" prices in the first place and/or charge a HUGE bid-offer spread on the exchange rates which negates the "commission free" buy back deal.

Just don't take too much cash! Use a credit card over there to withdraw the last few £ if you can't predict how much you'll need.

niff_noff

Having just re-read Martins Guide, it seems to me that the cheapest way to spend and to withdrawal cash has got to be the Liverpool Victoria Credit Card (assuming you don't want to change current a/c to Nationwide to get their debit card).
For cash, although they charge 1.5% withdrawal fee, this is more than offset by the better cc exchange rates (Martin's 'spot-check' in the article gave a 5% better rate). The key, though, is that LVic do not charge interest on cash withdrawals if paid off in full, thus potentially saving interest @ 15% or more on this amount.
This even make the LVic cc better than the NW cc for worldwide cash withdrawals as you would pay 2.75% withdrawal fee with LVic vs 15.3% (min) interest with NW - and still better than other cash sources due to the better exchange rate, assuming Martin's 5% better rate is typical.
One more point - make minimum cash withdrawal £150 so that £1.50 minimum charge is covered
Please comment if I have missed something here....

grumbler

niff_noff wrote:

...assuming you don't want to change current a/c to Nationwide to get their debit card....

You do not need to change account. The article is already corrected.

...This even make the LVic cc better than the NW cc for worldwide cash withdrawals as you would pay 2.75% withdrawal fee with LVic vs 15.3% (min) interest with NW ...

How can you compare one-off fee with annual interest rate? :mad:

...and still better than other cash sources due to the better exchange rate, assuming Martin's 5% better rate is typical....

Worse than NW debit or cash card. Worse than NW credit card outside Europe

...One more point - make minimum cash withdrawal £150 so that £1.50 minimum charge is covered...

One more point - withdraw any amount with NW debit and cash card without any charge.

niff_noff

Thanks Grumbler - I thought I must have overlooked something - hence my closing line.
However, I did start my post with an assumption about not wanting to change to NW current a/c. I incorrectly assumed I would have to change to qualify for the card, rather than just opening one as a secondary account.
Of course my other mistake was the APR of 15.3% (only 1.27% per month).
So to summarise (hopefully correctly this time) :
1) Of course the NW debit card is the best bar none

....but for those who don't want an NW bank a/c...

2) The LVic cc is the best cc for Europe
3) If you are over 50, the SAGA cc is the best cc for ex-Europe use (1% withdrawal fee vs 1 month interest @ 1.27% for NW cc)
4) Otherwise the NW cc is the best for ex-Europe use

grumbler

niff_noff wrote:

2) The LVic cc is the best cc for Europe

I just checked and it looks like LV do not offer CC anymore...
EDIT: after some searching I found information (posts #27-29 HERE that LV do not have 'on-line banking arrangements for the credit card'. Only telephone.

3) If you are over 50, the SAGA cc is the best cc for ex-Europe use (1% withdrawal fee vs 1 month interest @ 1.27% for NW cc)

YES. Some correction:
NW CC rates are now 14.9% and 15.9%. For 14.9% monthly rate is 1.16%. If you pay balance in full every month you will pay interest for 1 - 56 days depending on time of withdrawal. If you 'preload' CC you do not pay interest.

....but for those who don't want an NW bank a/c...

Are there any reasons not to want this account? I never withdraw cash from CC.

J_Tous

I don't know if anyone is still reading this discussion, but if you do have to buy currency rather than use cards and live in London, I have found somewhere with a very good exchange rate.

I am going to Croatia this week and needed to buy some Euros to pay for the accommodation when we arrive as they don't accept credit cards. I checked out the Post Office and my own bank (Lloyds TSB) exchange rates which were very similar. I was about to go with Lloyds (as you can order it through your online account, commission free, and they deliver it to your local branch), but then noticed a large queue outside a foreign exhange shop. I checked their exchange rates and they were the highest I had seen anywhere. Also they don't charge commission.

The branch is called Thomas Exchange Global, their branch is at 141 Victoria Street, London very near Victoria train station. Their website is https://www.thomasexchangeglobal.co.uk (sorry I don't know how to do links) if you want to check the rates.

For example, today their exhange rate for selling Euros was 1.486 and the Post Office rate was 1.44. I saved about £30 on the 1000 Euros I was buying. They also had unusual currencies so I was able to buy a few Croatian kuna to last me until I can withdraw cash from a cashpoint when we get there.

I had to queue up for about 10 minutes because it was lunchtime, but it was well worth it!

pin

I've touted that place on several occasions. It without a doubt has the best rates around I have seen.

pin

http://travel.independent.co.uk/low_res/story.jsp?story=647488&host=2&dir=3

lydiag_3

I've found that Travelex consistently offers the best exchange rate - approx. +3% above the median daily exchange rate. Compare this to my bank, LLoyds TSB which typically offers +4.5% and you would think the the choice is simple, especially since Travelex provides an easy airport pick-up option and their customer services is second to none.

However, LLoyds has been charging/penalising me +1.5% for purchasing my foreign currency somewhere other than at their bank (with no upper limit) - thereby removing all competitive advantages offered by Travelex.

I've had conversations with Lloyds about this, giving them the opportunity to offer me a more competitive rate, but to no avail. I think it is outrageous that they should be allowed to penalise me for finding a better rate elsewhere!

I've also since found out that LLoyds has extended this charge to any purchases (cash or otherwise) made in this country using a debit card - i.e. another £1 on top of the charges levied.

Obviously, putting all payments on my credit card would seem the optimum solution when abroad, but this is just not possible in places such as Italy and Holland where they remain suspicious of card transactions.

grumbler

lydiag wrote:

... I think it is outrageous that they should be allowed to penalise me for finding a better rate elsewhere!

Unfortunately all (?) banks besides Nationwide do this. Read my post #49 on page 5 of this thread.
Also posts #8,#17,#30,#32-33,#35,#37-39 in 'Alliance and Leicester Savings Product Changes' thread.

Obviously, putting all payments on my credit card would seem the optimum solution when abroad, but this is just not possible in places such as Italy and Holland where they remain suspicious of card transactions.

Yes, this is optimum solution - but only if you use Nationwide credit card. If you have some problems with CC acceptance you can always withdraw cash with Nationwide debit or cash card.

'The cheapest way to spend overseas...' article.

IMHO only when you travel to very exotic countries you need to buy foreign currency here in UK before travel.