Can I take money out abroad then convert it back to pounds?

TheNewGuy_2

This is probably a stupid question but here goes:

I live in Northern Ireland I can easily cross over into the Republic withdraw Euros with my Halifax Clarity and then convert the Euros into pounds and save the money.

Would this get around the cash withdraw hit on my credit report since it's in a foreign currency and worthwhile since the commission would be less than the interest rate on my savings?

Vortigern

Is the interest rate on your savings greater than the interest you will pay on the CC?

Your Euro withdrawal is a cash advance on which interest will be charged from the date of withdrawal until it's repaid.

glentoran99

yes it will be a cash withdrawal, but no you wont save money, the buy back rate will leave you worse off

zerog

There would be no difference to using the Clarity to withdraw GBP directly

If you managed to get a Supercard, it is a different matter, because cash withdrawals are treated as purchases, so you get your usual credit card rewards, and pay the Visa exchange rate which is usually 0.25% or so worse than interbank.

If you know where to convert foreign cash at interbank rate (in NI: buy old Irish punt and cash them in at the central bank in Dublin, but ask for GBP payment to your bank account rather than taking the euro cash), then you'll actually make a profit

TheNewGuy_2

Thanks!

Don't know where I read that withdrawing in a foreign currency wasn't counted as a cash withdraw, feel pretty silly now.

But buying old coins is an interesting idea. I also wonder if I can use my card for foreign currency purchases. E.g. from travelex.

Vortigern

TheNewGuy wrote: »

I also wonder if I can use my card for foreign currency purchases. E.g. from travelex.

You can, but it will still be treated as a Cash Advance and attract interest immediately. The same applies if you use the card to buy travellers cheques, gambling transactions, roulette chips etc.

You need to read the terms and conditions of your card.