High street rate or exchange when we get there

Pete.g

Sorry but can I ask what sort of rate I would be paying if I were to draw euros straight from an ATM while away, how does it work out if I were to draw out €1000 how much £ would I have to pay back?

Sorry if I sound a bit thick just trying to get my head round it.

I have just rang Halifax and told them I'm going abroad.

Pete.

zagfles

Pete.g wrote: »

Sorry but can I ask what sort of rate I would be paying if I were to draw euros straight from an ATM while away, how does it work out if I were to draw out €1000 how much £ would I have to pay back?

Sorry if I sound a bit thick just trying to get my head round it.

I have just rang Halifax and told them I'm going abroad.

Pete.

The current rates are here: https://www.mastercard.com/global/currencyconversion/index.html

These vary daily but the rate is usually very close to the "spot"/interbank rate.

SW17

Pete.g wrote: »

Sorry but can I ask what sort of rate I would be paying if I were to draw euros straight from an ATM while away, how does it work out if I were to draw out €1000 how much £ would I have to pay back?

Sorry if I sound a bit thick just trying to get my head round it.

I have just rang Halifax and told them I'm going abroad.

Pete.

You will get the MasterCard daily rate without any additional fees or charges. You can see the previous day's rate using this tool (Put GBP as the base currency)

https://www.mastercard.com/global/currencyconversion/

The rate as of 28/03 is 1.267162, so if you withdrew EUR 1000, it would charge GBP 789.17 to your account. Interest would start being added from that point, but as mentioned above, it is small compared to fees on other cards.

For example, many other cards would add 2.75% foreign currency fee, which would increase the charge to GBP 811.49 in the above example. Some cards may add a fixed cash advance fee per withdrawal on top of this, so the total charge could easily get up to 4-5% for smaller amounts.

You avoid this with Halifax Clarity, and it also means you don't have to take out large amounts, as it doesn't penalise you for making multiple withdrawals (of course the exchange rate itself will change from day to day). Also as mentioned above, very important to select the "without conversion" option when making the withdrawal, to ensure it is Halifax and not the ATM owner that does the conversion.

Also use your Halifax Clarity for any purchases abroad (in fact use it as much as possible, minimise your cash expenditure), and of course you will get the normal interest-free period on those. Again, make sure you always pay in local currency when using the card.

[Edit -crossed posts with zagfles, great minds and all that...:)]

Pete.g

Ok that's great thank you, I appreciate the explanations.

Pete.

eDicky

Pete.g wrote: »

I do have a Halifax clarity credit card yes why?

Pete.g wrote: »

Ok that's great thank you, I appreciate the explanations.

I can't help being curious - can you also explain something?

Do you happen to have the ideal card for overseas travel, the Halifax Clarity, just by chance? Halifax issue several different credit cards. Was there some other reason why you chose to have this particular card?

Rednaxela

Hello - another person travelling to Tenerife this week, with a Halifax Clarity card.

I suppose I'm still in the antiquated way of thinking that withdrawing with a credit card is always a bad idea. I've read up on it now, and can see why it's probably my best option. The only reason I want cash is because not every bar/restaurant takes plastic.

One question remains for me (although I can assume the answer by the fact it's not mentioned in the guides). Doesn't withdrawing money on your credit card damage your credit rating?

Just wanted to double check.

Thanks!

PeacefulWaters

Doesn't withdrawing money on your credit card damage your credit rating?

If you are increasing the balance month on month lenders will be cautious.

If you clear the balance fully it's unlikely to have a negative impact.

Pete.g

eDicky wrote: »

I can't help being curious - can you also explain something?

Do you happen to have the ideal card for overseas travel, the Halifax Clarity, just by chance? Halifax issue several different credit cards. Was there some other reason why you chose to have this particular card?

I got the card when we went to Florida last year to purchase things with on shopping days. I didn't realise you could withdraw cash too without being penalised.

Pete.