MSE News: Is it worth buying travellers' cheques?

damo24

I have a poor credit rating and as such I can't get a card with cheap rates. When I have gone on holiday in America I have alway taken TC. Over there, they are accepted as cash (if I pay using TC I get cash in change with no commission charged). I find that along with the security options a comforting bet.

I have looked into pre-pay cards and "cash passport" cards which offer better rates when converting here but they all come with a hefty cash withdrawal fee over there meaning any savings made here are lost.

If anyone can make any suggestions on how people with poor credit ratings can access cheaper rates I would love to hear them.

Roger1

callum9999 wrote: »

Is that really a Chinese problem ...

Yes.

There's been much discussion on boards like www.flyertalk.com.

Quizzer

I didn't want all my eggs in one basket so bought a mix of US dollars and T/c's through the MSE link to best rates. By buying both from one site, Thomas Cook, I got a decent rate as they offered the same rate on both. Some sites offered a great cash rate but a rubbish T/c rate. If I had bought them from different sites I would have had higher charges to pay and although my bank charged me for the transaction on my card it was less than I would have paid for fuel & parking to go to town and buy them. There is more to weigh up than just exchange rates and fees.

grump

I visit the US for longish holidays at least twice a year and find travellers cheques in US dollars invaluable. These can be used just like cash in most stores, restaurants etc. They can also be exchanged for cash in any bank without charge. They never expire either. Americans, themselves use them alot on holiday too. They can also be used on American cruise ships and be exchanged for cash thus avoiding the need to carry alot of cash with you for use in port.

Recently my husband mislaid his commission free credit card just before our holiday departure and the company could only send a replacement to our address in the UK and could not guarantee it would arrive before our departure. We just went out to a local travel agency and got a good rate on travellers cheques in US dollars. We just keep a note of the numbers separately and note which ones we have encashed. I just hope they are not discontinued as there are some shops in the US eg. Aldi which only accept cash or debit cards (which prove too expensive for us to use with their fees for overseas use.)

NFH

grump wrote: »

We just went out to a local travel agency and got a good rate on travellers cheques in US dollars.

What do you call a "good rate"? How far from the wholesale/interbank rate?

zagfles

We have joint Halifax Clarity cards, joint Nationwide Select cards, joint Nationwide debit cards and joint First Direct cards. Total of 8 cards, 6 of which are far better value than TCs and more convenient for both spending and cash withdrawals. And the other 2 are probably about the same as TCs in terms of charges.

No messing around in advance of any holiday getting TCs or cash, we never even think about foreign currency these days before going on holiday - we just go and get cash out locally.

Never known an airport not to have an ATM, though we do usually take a little in GBP cash just in case.

thaiwarrior

I holiday regularly in Thailand and by far the best option for travel money is to take high denomination American Express TC`s in UK sterling.Almost all Thai ATM`s now charge a 150 baht (£3) fee for cash withdrawals and that`s on top of what your UK card issuer charges.I buy them in denominations of £200 as the exchange booths charge a flat fee of 33 baht (about 66p) for each TC exchanged no matter if it is £20 or £200.So the fewer you have to change the better obviously.The 33 baht fee is more then offset by the higher rate they offer for TC`s over cash.You need to take some cash for when you get near the end of your holiday to avoid having to change another TC and being left with a lot of unused baht.
Amex TC`s offer you total security and can be replaced in 24 hours worldwide if lost or stolen.They never expire and Marks and Spencer travel money who i use will exchange any unused ones for face value.M & S charge a fee of 1% when you purchase,a small price i feel for the security TC`s offer in far flung areas of the world.
Naturally other options are cheaper in Europe but for Thailand the humble TC remains the cheapest and best option.

Littledosh

TakeThis wrote: »

Large denominations of American Express Sterling TCs are still one of the best options for Thailand if you can get them commission free.

I agree with the above comment. First Direct have an excellent service whereby one can order up to £2500 (?) worth of T/Cs in sterling and have them delivered NEXT DAY to one's home for FREE. When I exchange them in the Thai banks the rate is always better than cash, they're secure and there's no waiting to check one's on-line statement to see how much you've been ripped-off. I think the article is poorly researched, not everywhere is Europe.

fifeken

thaiwarrior wrote: »

I holiday regularly in Thailand and by far the best option for travel money is to take high denomination American Express TC`s in UK sterling.

Not the best but almost the best. Aeon bank ATM withdrawals (to avoid the 150 baht charge) and an account with no overseas transaction charges would be better.

thaiwarrior wrote: »

M & S charge a fee of 1% when you purchase,a small price i feel for the security TC`s offer in far flung areas of the world.

Another 1% wasted as fees free TCs are available.

DDuck58

I will never use traveller's cheques again. I had Visa TC's in Euros that I could not cash onboard Celebrity Silhouette and walked around to 5 banks in the next port. One bank called Visa who indicated that the TC's were too old (2007) and that the clearing house had been closed. Finally found a small exchange office, but didn't cash them all in - Big mistake! Back home, the local exchange office would not touch them since they were in Euros - should have cashed them in Europe! and my bank was very very reluctant to cash them since they were Visa vs AmEx... but if you look at Visa - everything appears okay. I'm cashing in all of my AmEx ones shortly too - just in case!. I never want to be in the position of not having money that I thought I had! Use credit cards and debit cards!