Foreign Currency: To buy or not to buy?

Kingsgraphic

Just a note to anyone going 'abroad' and wondering if they should get local currency for the trip. My tip is don't get too much. Use your credit card wherever possible.
OK, it varies a bit from currency to currency, but my investigations find that, while the CC will charge you 3%ish for using the card abroad, most foreign exchange outlets, for example M&S money and The Post Office, are selling at around 10% down on the current forex rate (while boasting that they don't charge commission!).
The credit card exchange rates are based on the forex rate minus the 3%. Much better!

callum9999

Kingsgraphic wrote: »

Just a note to anyone going 'abroad' and wondering if they should get local currency for the trip. My tip is don't get too much. Use your credit card wherever possible.
OK, it varies a bit from currency to currency, but my investigations find that, while the CC will charge you 3%ish for using the card abroad, most foreign exchange outlets, for example M&S money and The Post Office, are selling at around 10% down on the current forex rate (while boasting that they don't charge commission!).
The credit card exchange rates are based on the forex rate minus the 3%. Much better!

Though of course the logical option is to just get a card that charges the forex rate minus 0% - which are pretty easy to get hold of now. (Most of the credit cards require a decent-ish credit history - but not so much for the debit cards).

Kingsgraphic

callum9999 wrote: »

Though of course the logical option is to just get a card that charges the forex rate minus 0% - which are pretty easy to get hold of now. (Most of the credit cards require a decent-ish credit history - but not so much for the debit cards).

Well yes and no. Zero cards, as they tend to label themselves, make up the difference elsewhere in the credit chain. Like they say, there's no such thing as a free lunch....I am just highlighting the difference in CC and cash, not individual cards, which are down to personal preference depending on your usual spend pattern.

Kimber1

I have to say I ordered foreign exchange on my mastercard (LloydsTSB) and was aware that I would get a cash advance fee charged but in addition I got two months worth of interest charged even though I paid the statement in full for both months. I phoned but the contact centre person replied that I should know that "every bank" charges interest and when I asked if I could have an email address for their customer relations team apparently they do not have email - amazing response. Does anyone know of another bank who do not charge you interest - I always pay my statements on time (actually within a day of the statement being issued) and although I do this and pay in full I still get charged interest for two months. Very unfair and I suppose I will get charged interest next month as well - a never ending amount being paid. A warning do not get cash travel exchange out from your bank without checking all the small print and how long they will charge you interest for.

jonesMUFCforever

It's not in the small print - just take a look on the reverse of your statement - all the information is there for you.

Kingsgraphic

Kimber1 wrote: »

I have to say I ordered foreign exchange on my mastercard (LloydsTSB) and was aware that I would get a cash advance fee charged but in addition I got two months worth of interest charged even though I paid the statement in full for both months. I phoned but the contact centre person replied that I should know that "every bank" charges interest and when I asked if I could have an email address for their customer relations team apparently they do not have email - amazing response. Does anyone know of another bank who do not charge you interest - I always pay my statements on time (actually within a day of the statement being issued) and although I do this and pay in full I still get charged interest for two months. Very unfair and I suppose I will get charged interest next month as well - a never ending amount being paid. A warning do not get cash travel exchange out from your bank without checking all the small print and how long they will charge you interest for.

I have MBNA (Visa), pay in full every month, and I've never had any interest charged for anything. As I mentioned earlier foreign currency transactions attract a 2.99% charge.

dzug1

Kimber1 wrote: »

Does anyone know of another bank who do not charge you interest -

I don't not know of ANY bank that does not charge interest on credit card cash advances whatever currency they are in. There may be the odd one but they are few and far between

YorkshireBoy

dzug1 wrote: »

I don't not know of ANY bank that does not charge interest on credit card cash advances whatever currency they are in. There may be the odd one but they are few and far between

The one that stands out to me is Saga.

callum9999

Kingsgraphic wrote: »

Well yes and no. Zero cards, as they tend to label themselves, make up the difference elsewhere in the credit chain. Like they say, there's no such thing as a free lunch....I am just highlighting the difference in CC and cash, not individual cards, which are down to personal preference depending on your usual spend pattern.

Like where? I don't spend a penny extra on my "Zero" credit/debit cards than I do with my normal banks. I guess maybe some of them don't have the most competitive APRs but I personally never keep a balance on them, and as I said before, there are fee-free current accounts as well.

I know you were just comparing cash and generic CCs, but if you are interested in saving money, the logical thing is not to just compromise half way when you can scrap all the charges all together. It isn't hugely down to personal preference (unless you prefer to pay more in fees?) as you don't need to use your "fees free" cards for everyday spending. I don't personally ever use my Norwich and Peterborough debit card or Halifax Clarity card while in the UK.

travelhealthquote

hi,
Thanks for the information, foreign currency are very much useful, they are better useful when we visit other country for long time visit.

chattychappy

dzug1 wrote: »

I don't not know of ANY bank that does not charge interest on credit card cash advances whatever currency they are in. There may be the odd one but they are few and far between

I believe Sainsbury's Gold is one: http://www.sainsburysbank.co.uk/credit_cards/cca_gold_card_keybenefits_tab.shtml

There is a £5/month fee, but it comes with travel insurance.