Halifax Clarity

rufus86

How is this a better deal than getting cash from a bureau de change?
I cant figure it out. From what I gather, there is no withdrawal fee abroad, but regardless of whether or not I pay back in full on time, I still get charged in interest in what I withdraw?

So doesnt that negate the effects of a business rate exchange rate from ATM?

Basically I'm looking to have around $600 dollars cash so want the best deal!

YorkshireBoy

rufus86 wrote: »

regardless of whether or not I pay back in full on time, I still get charged in interest in what I withdraw?

At the representative rate of 12.9% APR, how much interest, in percentage terms, do you think you'll pay if you clear the balance immediately on your return, say after 2 weeks?

How much worse is the bureau de change rate, than the inter bank rate, if you bought here?

And there's your answer.

rufus86

Sounds complex to save a few pounds! But every penny counts. I dont really understand credit interest! Do I divide 12.9% by 365 to get a daily rate??

YorkshireBoy

At 12.9% you'll pay just over 1% per month, so around 0.5% for a fortnight*.

The bureau de change rate here would be around 3% worse than the interbank rate.

On $600 it'll make very little difference indeed!


* Do remember to factor in any ATM fees levied by the bank (common in the USA?).

rufus86

YorkshireBoy wrote: »

At 12.9% you'll pay just over 1% per month, so around 0.5% for a fortnight*.

The bureau de change rate here would be around 3% worse than the interbank rate.

On $600 it'll make very little difference indeed!


* Do remember to factor in any ATM fees levied by the bank (common in the USA?).

great, thanks for that! saves the hassle of getting a credit card then!

guesswho2000

rufus86 wrote: »

great, thanks for that! saves the hassle of getting a credit card then!

Is it really any hassle though?

The credit card would be there for future trips, always getting the Mastercard exchange rate. If you make purchases instead of withdrawing cash, you'll get the standard interest free period, as with most credit cards, if paid in full.

Plus, you lose your credit card? No big deal, just call Halifax and cancel. Lose $600 in cash? Bye bye cash.

In all seriousness, unless you'll never travel abroad again, five minutes filling in the application form could save you a fair bit over time. Plus, your OP did state that you wanted the best deal, this is it .