Accessing Money (fee free) from Australia

Cat_76

Hi, I'm pretty new so apologies if this is posted in the wrong section

I'm basically going travelling around Australia at the end of the year & need advice on the best way to look after my hard earned spendies!

I don't want to be carrying large sums of cash (or travellers cheques) around with me so ideally would like to be able to withdraw cash as & when I need it

I will most probably be charged everytime I do this from my current account (& could lose out on the exchange rate too) So what I had thought of was buying a load of aussie travellers cheques here before I go, then opening a current account while over in Oz & depositing them there. However, I am not sure whether I will be charged for depositing the travellers cheques. Then there's the problems of having to wait for the card & pin no to arrive etc

Really at a loss as what is the safest/cheapest & most convenient way to deal with your money abroad

Any help or suggestions would be really appreciated

Thanks in advance, Cat

AP

Use a debit or credit card from Nationwide Building Society. They are the only financial institution which does not charge a 2.75% conversion fee on foreign currency transactions. Open a current account or apply for a credit card with them if you have not already got one. It is definitely worth it even if you simply use them just for foreign currency transactions.

Cat_76

Thanks AP, good stuff

Just leaves the matter of conversion rates... how could I tell what rate they're using? (is this how they claw back on being fee free!?)

KTF

Nationwide use the interbank fee (similar to the rates on xe.com). This is the best rate you can get and they do not tweak the rate to compensate for the no fees.

Chadsman

The exchange rates are those set by VISA rather than Nationwide who use the wholesale money market rates. There are many sites that have the current wholesale exchange rates eg: http://corporate.visa.com/pd/consumer_services/consumer_ex_rates.jsp
:beer:

Rafter

Cat,

The difference between a bank and a building society is that the first wants to make profit out of you whereas the second is actually owned by you as one of its members.

Sure, Nationwide needs to cover its costs, but it chooses not to charge its customers any 'spread' on foreign exchange rates or any charges for using their cards overseas.

No catches - for a change! I suppose you could say that the rate on their current account isn't the most competitive available, so they get it back that way. However, their rate is still miles better than most of the non-introductory offers out there.

R.

Cat_76

Thanks for your replies folks, it seems Nationwide is the way to go

Am I right in thinking using a debit card would be cheaper than using a credit card (is there a fee for 'cash advances' on credit cards?)

Also, any idea if I would I be able to open a current account soley for this purpose? I know some institutions can be selective, esp if your salary won't be paid in!

Thanks again, this has been a great help!

KTF

Yes, debit cards are fee free, taking money out on a credit card counts as a cash advance and attracts a fee.

Yes, you can open a current account just for going on holiday. There is no funding requirement nor to you have to switch to them.

Cat_76

Brilliant. So it seems a Nationwide debit visa card is the cheapest way for me to withdraw my money is Australia

Just to confirm the whole 'visa' thing... Do debit visa cards not attracted any fees at all on cash withdrawals?

dzug

Cat_76 wrote: »

Brilliant. So it seems a Nationwide debit visa card is the cheapest way for me to withdraw my money is Australia

Just to confirm the whole 'visa' thing... Do debit visa cards not attracted any fees at all on cash withdrawals?

It depends who issues the visa debit cards.

Nationwide do not charge any fee or make any exchange rate loading on cash withdrawals.

Other issuers of the cards do either or both.

Labman_2

What you are looking for is a Nationwide Flexaccount.