How to buy travellers cheques or foreign currency

grumbler

southcoastsailor wrote:

...Although watch out for those card charges from your own bank which can add 1.5% - this requires Switch/Delta or cash to avoid.

As I pointed out in my post #49 in this thread using debit card usually does not protect you from paying extra 1.5%, though for some cards this fee is capped.

southcoastsailor wrote:

...But as mentioned many times in this thread, I have used my Nationwide credit card for business expenses in many countries without a hitch. However, cash withdrawal incurs interest fees from the day of withdrawal until all charges are paid off (ie including any hotel bills etc). So I prefer to sort out any cash requierments in the UK first - most countries take US Dollars or Euros for business trip type expenses these days.

You don't have this problem with Nationwide debit card - hence no need to 'sort out any cash requierments in the UK first'.

KD

Did a good sweep around banks / internet - all suggestions here. Ended up buying at Thompson travel agency - rate was more or less same as elsewhere, no commission buying or returning euros. If you buy over £500 you get a free £10 international telephone card. Overall worked out the best result for me as my bank charges ATM withdrawls abroad.

tuts1230

best rates are from travelex uk or online fx.streets ahead of the rest

imported_jac

Hi

I need to send a cheque for 5716 euros to the Tresor Public in Angouleme. Which would be the cheapest way to do this. We have got a bank account in France but their charges are quite high, would it be better to arrange a bankers draft from someone like travelex?
Any advice would be appreciated.
Thanks
Jackie

pin

imported_jac wrote:

Hi

I need to send a cheque for 5716 euros to the Tresor Public in Angouleme. Which would be the cheapest way to do this. We have got a bank account in France but their charges are quite high, would it be better to arrange a bankers draft from someone like travelex?
Any advice would be appreciated.
Thanks
Jackie

You might want to have a look at this article:

Sending Money Overseas: Moving money large or small

maureen_symonds

I have recently purchased £1,000 euros from Travelex on line via my Alliance and Leicester Debit Card. Although I was not charged anything by Travelex I have just received my statement from A&L showing that Visa have made a counter charge of £15.00 for the privilige of allowing me to use my money from my current account to buy Euros.

I have tried to obtain a refund from A&L or some sort of explanation but they just fob me off and say it is the "Norm" yet when I make other purchases on my debit card I am not charged a fee. I feel I have been robbed. Any ideas or suggestions please.

Molly

pthompson wrote:

Can anyone advise where best to buy £1000 worth of Euros (in cash)?

I was told that the Post Office is the cheapest as they charge 0% commission, however they're not very transparent on the buy/sell spread -- which is probably where they make their profit -- so it's difficult to compare them with high-street banks, bureaux de change and travel agents.

Thanks.

Answer From Martin

As this is now linked to from the official Regular Q&A section of the site' thought I'd put my answer here, up the top.

The cheapest way is use the right plastic

No matter how many times I say that, people always seem to question it. !However using the right debit or credit card is the cheapest way to spend and get foreign currency. !This is explained in full detail in an articlehere. !It includes comparisons with foreign exchange and travellers cheques.

Getting Foreign Exchange and Travellers Cheques

If you do want some cash to take with you - or are going to a place where cards aren't accepted. !Then the first thing to say about getting Forex & Travellers Cheques is 'commission free' is simply to be ignored in your 'what's best value' search.

Foreign exchange bureaus make their money two ways.

• Commission - adding a charge when you convert.
• Rates - by giving you worse rates than you get yourself

Only when looked at together can you decide properly. !And it is common that a place which is 'commission free' has much worse rates than one that isn't - therefore the ONLY way to judge is by saying

I have £XXX how many Euros/Dollars/Zeloty will you give me for them after all fees and commission. !Whoever gives you more is the one to go to. !There are no hard or fast rules, it really is a matter of comparisons but a good start point are Marks & Spencer and the Post Office, further discussions below will tell you who's currently cheapest.

For details on converting substantial amounts of money click here

Martin

pin

Its a known fact that several banks and building socieities charge for foreign exchange transactions. Have you looked at your terms and conditions?

grumbler

maureen_symonds wrote:

Molly

Why do you quote Martin? His advice is to use 'right plastic' abroad, but not to buy currency here. He advises to by foreign currency here only 'if you do want some cash to take with you - or are going to a place where cards aren't accepted'. Is 1000 euros 'some cash'? Where in Europe cards are not accepted?
Also, if you use the same 'right plastic' - Nationwide debit card - to buy currency here you are not charged too. It is not Visa, but your bank charge you as most of other banks do. Read my posts #49 and #62 in this thread and The cheapest way to spend overseas: save 6% Martin's article.

watcher_2

M&S rates are good but beware if you pay by visa debit card as there will be a 1.5% charge which does not show until you check your bank statement. M&S do not advertise this.

watcher_2

Foreign currency purchased at M&S also has the same problem although they do not advertise the fact. The only way to buy the currency with no charges seems to be with cash although I thought that a debit card was the equivalent of cash. We were lucky and A&L refunded the charge 'as a goodwill gesture'