Cheaper to change GBP to Euros in the UK or abroad

pollypenny

OH and I have always taken some cash, then drawn out from an ATM at no charge with HSBC.

Now they have introduced charges.

I've read many recommendations for the Haifax Clarity card and Saga card bring charge free. However, surely interest is charged on a cash withdrawal.

Have people found a way round this?

benjus

1trainer1 wrote: »

I have used cards for longer trips but for the short trips like this cash is King for me...

Fair enough, but wouldn't it be better to get this cash in a foreign ATM at the spot exchange rate rather than getting it before you go?

benjus

pollypenny wrote: »

OH and I have always taken some cash, then drawn out from an ATM at no charge with HSBC.

Now they have introduced charges.

I've read many recommendations for the Haifax Clarity card and Saga card bring charge free. However, surely interest is charged on a cash withdrawal.

Have people found a way round this?

Either:


1. Get a fee-free debit card (Metro Bank, Norwich & Peterborough BS Gold Classic/Light) and use this instead of the credit card for getting cash
2. Use online banking to pay the credit card off as quickly as possible.

Doshwaster

pollypenny wrote: »

I've read many recommendations for the Haifax Clarity card and Saga card bring charge free. However, surely interest is charged on a cash withdrawal.

Have people found a way round this?

Yes, interest is charged from the date of withdrawal but if you pay off the amount quickly then it will still be cheaper than using a standard debit card as there will be no exchange loading or withdrawal fee.

Alternatively, use a free debit card a ATMs and use the Clarity card for spending.

pompeyrich

As you seem determined to take cash and for a hassle free exchange, not having to find a bank in Germany etc. Probably easier to change it here, I have used various options, from the local PO, Tesco, a local exchange place that is always competetative. i have pre booked an exchange to collect at the airport.

Whatever you do don't just roll up at the airport and expect a good, or even ok rate. We went to Belgium at the weekend, Travelex at Dover port was offering €1.03/£, P&O 1.11/£ onboard. Managed to get €1.2, for goods, at the baccy shop over there.

zagfles

pollypenny wrote: »

OH and I have always taken some cash, then drawn out from an ATM at no charge with HSBC.

Now they have introduced charges.

I've read many recommendations for the Haifax Clarity card and Saga card bring charge free. However, surely interest is charged on a cash withdrawal.

Have people found a way round this?

For a short holiday, just pay it off when you get back. The interest will be trivial.

As an example, say you needed £1000 cash for a two week holiday. Options may be:

1) Change cash here at post office/M&S/bank/travel agent. Typical markup 5% (hidden in their "commission free" rate). Cost £50

2) Change cash at foreign destination. Maybe slightly cheaper, say 4% markup (though this varies a great deal by destination). Cost £40

3) Use a typical debit card which doesn't explicitly charge, but marks up the Mastercard/VISA rate 3%. Cost £30.

4) Use the Clarity. Say 2 £500 withdrawals, first when you get there and second after a week. Pay it off when you get back. Interest would be, assuming the 12.9% APR - daily interest is 0.0334%, £500 for 14 days and another £500 for 7, total interest = 14*500*0.000334 + 7*500*0.000334. Cost £3.50

5) Use Metrobank. No charge at all. Cost £0

So you can see the Clarity is much cheaper than using a debit card which marks the rate up (like the vast majority do) or changing cash. But the advantage of getting the totally fee free option such as Metrobank isn't really that great, except for long holidays or if you travel very frequently.

pollypenny

Thanks for the replies, especially the maths, Zagfles.

We have just got the Saga card and will be able to pay off immediately when we are in the USA at DS' place.

benjus

pollypenny wrote: »

Thanks for the replies, especially the maths, Zagfles.

We have just got the Saga card and will be able to pay off immediately when we are in the USA at DS' place.

Remember that the Saga card charges 2% or £2 per cash withdrawal (in addition to the interest), unlike the Clarity which does not charge for cash withdrawals, only cash withdrawal interest.

zerog

I take all my holiday spend in cash and only use cards in an emergency. My next few holidays in the eurozone will be at the rate of EUR 1.25 per pound rather than 1.15 or whatever people are paying now. I do forego the interest I could have earned on it. If the rate goes the other way I just buy more.

I change money in Bayswater or Paddington where e.g. the current interbank rate is £1 to EUR 1.16, I would be able to buy for 1.145 and sell for 1.17. Appreciate that people who don't live in London may not be able to get these rates.

benjus

zerog wrote: »

I take all my holiday spend in cash and only use cards in an emergency. My next few holidays in the eurozone will be at the rate of EUR 1.25 per pound rather than 1.15 or whatever people are paying now. I do forego the interest I could have earned on it. If the rate goes the other way I just buy more.

I change money in Bayswater or Paddington where e.g. the current interbank rate is £1 to EUR 1.16, I would be able to buy for 1.145 and sell for 1.17. Appreciate that people who don't live in London may not be able to get these rates.

If you want to do it that way, you could consider opening a Metro Bank account and withdrawing Euros from the any of London's Euro ATMs that actually put the transaction through in Euros rather than converting (e.g. the NatWest one on Bishopsgate) when the GBP/EUR rate hits a rate you like. Although you'd be limited to the card's daily withdrawal limit, which might be a problem.


Of course, you could also just open a Euro account...