Cash in Switzerland

zagfles

Dephead2004 wrote: »

Thanks that's great advice from caz2003uk and bigadaj. caz2003uk wins so far with my 2500CHF challenge as the PO card weighs in at 5 transactions at 2.50CHF each= 12.50CHF = 8.33GBP cf Clarity card 1% for 2500CHF = 25CHF = 16.66GBP. But that means 5 trips to the Bank. Thanks guys

To correct the maths. The PO card has an exchange rate 3.75% worse than MasterCard, as above. The Clarity charges 1% per month approx (if you have 12.9% APR) which is 0.0334% per day.

Based on current rates, 2500CHF will cost £1738.04 with the PO card, plus the 8.33 withdrawal fee, ie £1746.37. With the Clarity, 2500CHF will cost £1672.80, plus 0.0334% per day from withdrawal till paid. Assuming you pay it off within a week of each withdrawal, the interest will be less than £4. So about £1676.

So you're about £70 better off with the Clarity.

Plus you don't need to predict in advance how much you're going to need with the Clarity. If you load too much onto the PO card, it'll cost you even more getting the money back.

gglaze

Just curious, what are you actually trying to accomplish here? I can't imagine why anyone would get such huge sums of foreign currency over a credit card - unless you basically are looking to have foreign cash to spend beyond you available cash funds in the bank, and actually want to put this into debt? If so, sounds like excessive spending, but I'm certainly in no position to judge

Personally for any amount this large I would use a cash (not debt) transaction through an FX service, such as CurrencyFair (my current favourite) or XE.com, and put the CHF into a CHF bank account, ready to withdraw in native CHF currency by debit card. FYI, Citibank offers a CHF savings account (or at least they used to) which you can have linked to your debit card for when you go to Switzerland, which would make the whole process seamless and still based in the UK.

If your goal is to get the best value from your transaction, surely this sort of cash transfer is better than any credit card rate? I had assumed people who use credit cards for foreign currency usually do so for small, convenient transactions - but not for huge cash withdrawls!

edit:
And I guess the other point here is you are trying to avoid actually just carrying the cash over with you?

edit:
FYI, just checked, the current rate for 2500CHF on CurrencyFair is £1695.17, which includes the £3 transfer fee. Is the Clarity credit card rate truly better than that? If so that's amazing..

zagfles

gglaze wrote: »

edit:
FYI, just checked, the current rate for 2500CHF on CurrencyFair is £1695.17, which includes the £3 transfer fee. Is the Clarity credit card rate truly better than that? If so that's amazing..

Yes. The Clarity card uses the MasterCard rate, which is pretty much interbank. It would be almost impossible to get a better rate unless you are transferring millions.

The only charge is the 0.0334% interest per day (if on the 12.9% APR). You can minimise that by paying the withdrawal off as soon as possible, as above.

Fruit_and_Nut_Case

rougebanks11 wrote: »

You can not withdraw GBP from an ATM. you should have translated that into CHF and then withdraw.

Thanks

Already taken care of. It pays to read through the whole thread before replying.

dzug1

agrinnall wrote: »

Well if it is you'll need to tell us how you managed it, because as the OP says, everyone else had it stopped and replaced by free travel insurance. It is still one of the better cards to use because charges are lower than many other mainstream card issuers, but it's not free any more.



http://www.moneysavingexpert.com/travel/cheap-travel-money#howgood

You are right - I was confusing it with the Select credit card

Should have looked it up rather than relying on memory.....

gglaze

zagfles wrote: »

Yes. The Clarity card uses the MasterCard rate, which is pretty much interbank. It would be almost impossible to get a better rate unless you are transferring millions.

The only charge is the 0.0334% interest per day (if on the 12.9% APR). You can minimise that by paying the withdrawal off as soon as possible, as above.

Thanks, you've opened my eyes to new possibilities!

I also checked my XE.com online rate, it was giving me an even worse rate than CurrencyFair.

So by this logic, as I can see it, it is always better to use the Clarity card and do a local cash withdrawl, than to use an online FX service to transfer the cash first? Is that true? Seems amazing.

Any way to extend this approach to work within the UK to get foreign currency somehow out of the Clarity? For example, let's say I need to send some CHF to Switzerland. Is there some way (within the UK) to get CHF from the card, and then deposit that to my CHF account, and then transfer it over to Switzerland directly? Just an example.. Or is it safe to say this approach can only ever work if you are in the local country where you can withdraw that currency directly from the cashpoint?

How about using the Clarity at one of the few Euro dispensing cashpoints around London, such as the Natwest one on Bishopsgate? Does that work?

I guess I need to go do my research and find out how to get a Clarity card. This is the Halifax one right? Presumably easier if you get a Halifax bank account first?

zagfles

gglaze wrote: »

Thanks, you've opened my eyes to new possibilities!

I also checked my XE.com online rate, it was giving me an even worse rate than CurrencyFair.

So by this logic, as I can see it, it is always better to use the Clarity card and do a local cash withdrawl, than to use an online FX service to transfer the cash first? Is that true? Seems amazing.

Yes. It's not only the Clarity - there's also MetroBank and a few others who offer MasterCards with no exchange rate markup. I believe MetroBank do it with the debit card too, then you can even avoid the interest. Though they only have branches in London and you have to visit to open an account.

MasterCard seem to have a markup of 0.02% on the interbank mid rate, you'd struggle to improve on that! See https://forums.moneysavingexpert.com/discussion/4189433

Any way to extend this approach to work within the UK to get foreign currency somehow out of the Clarity? For example, let's say I need to send some CHF to Switzerland. Is there some way (within the UK) to get CHF from the card, and then deposit that to my CHF account, and then transfer it over to Switzerland directly? Just an example.. Or is it safe to say this approach can only ever work if you are in the local country where you can withdraw that currency directly from the cashpoint?

I think so. Obviously if whoever you are paying takes MasterCard you can use that, or if it's an individual you could add them as an additional cardholder and send them the card, if you trust them completely! (though don't know if it's safe to send cards in the post and what would happen if it were stolen).

How about using the Clarity at one of the few Euro dispensing cashpoints around London, such as the Natwest one on Bishopsgate? Does that work?

In general the foreign currency cashpoints in the UK will convert the currency at some rubbish rate and charge your card in GBP (a bit like DCC, but compulsory rather than optional). Certainly the ones at UK airports do that. I've heard there are some exceptions but not sure where.

I guess I need to go do my research and find out how to get a Clarity card. This is the Halifax one right? Presumably easier if you get a Halifax bank account first?

No, I got one without having any Halifax account at all, and with a big credit limit. It'll depend on your credit record more than anything else.

dzug1

You can get CHF in the UK with a Clarity card, yes - but not at Clarity rates - it would be the rate (and CC fee) of whatever BdeC you bought them from.

And unless your CHF bank has an office in London you can't deposit them in it. If it does, and accepts them, you don't need to transfer them to Switzerland - they are already there.

As to the euro machines in London I would imagine (but am not certain) that the machine would set the rate, not Clarity.

Dephead2004

agrinnall wrote: »

Well if it is you'll need to tell us how you managed it, because as the OP says, everyone else had it stopped and replaced by free travel insurance. It is still one of the better cards to use because charges are lower than many other mainstream card issuers, but it's not free any more.

OP, why don't you just follow the advice in the MSE Travel Money guide? [Although for some reason it no longer mentions the Metro Bank debit card, which has no charges for foreign withdrawals]


Thanks for this but it tells me how good my existing cards are but not the very best way of using any method at all or any card at all or even taking cash. This forum has been brilliant as humans beat computers

Dephead2004

How do I make a "special arrangement"? I've banked with them for 25 years+