Holiday money

brednall

Hi

Having not been on a family holiday abroad for a few years, I'm just wondering what's the best way to take our spending money with us - GBP, euros, a prepaid card or just take the hit of fees by spending on my debit card? 

Is it worth opening a separate current account to just use for the holiday? 

Thanks

eskbanker

https://www.moneysavingexpert.com/travel/cheap-travel-money/ outlines the MSE approach to this question....

TadleyBaggie

I always use my Sterling debit card for cash via ATMs and in shop/restaurants, no fees and always the best conversion rate. 

NoodleDoodleMan

"Is it worth opening a separate current account to just use for the holiday?"

Straightforward answer = yes............as long as you open one of the "best buys" outlined in the response to your question.

It's also beneficial to check out the ATM scenario in the country you are visiting - because the machine may well take a fee separately, regardless of which card you have.

So, if you have the "wrong" card you'll suffer a double hit whammy withdrawing currency.

zagfles

Thing to be aware of is when changing cash, even at places that pretend to be "commission free", there will be a large commission hidden in the rate, could be anywhere between 3 and 10% or more off the interbank rate.

When you use a card, either paying for stuff or at a foreign ATM, the rate you get will be the VISA/Mastercard rate which only has a small commission (probably about 0.5%). Most bank cards charge an extra amount on top - but in most cases it'll be better than the rate you'd get changing cash. But there are several cards with no forex fee, see above link, well worth getting one if you go abroad.

Just avoid "dynamic currency conversion" - always pay in the local currency if they offer you a GBP rate.

TadleyBaggie

NoodleDoodleMan said:

t's also beneficial to check out the ATM scenario in the country you are visiting - because the machine may well take a fee separately, regardless of which card you have.

Recent was in Portugal and found that the ATM at the local Santander branch did not charge any fee. However one morning I was in a hurry and used a much closer "CashZone" ATM, got charged 3.95 Euros.

NoodleDoodleMan

I believe Euronet charge the highest fee ?

Mind you Santander are not far behind - unless you have a Santander card of course.

twopenny

Is that a Santander credit card or debit card please Mr Noodle?

CKhalvashi

TadleyBaggie said:

NoodleDoodleMan said:

t's also beneficial to check out the ATM scenario in the country you are visiting - because the machine may well take a fee separately, regardless of which card you have.

Recent was in Portugal and found that the ATM at the local Santander branch did not charge any fee. However one morning I was in a hurry and used a much closer "CashZone" ATM, got charged 3.95 Euros.

It depends on the bank and often can depend on the relationship your bank has with other banks in that country.

UK banks seem to be the worst for international relationships, but I tend to find BNP Paribas Group to be with no charge for any of my UK cards.

Any ATM operator can charge fees within the scheme rules.

The best advice for most places is 'just use a card', rejecting currency conversion of course.

NoodleDoodleMan

twopenny said:

Is that a Santander credit card or debit card please Mr Noodle?

A Santander UK debit card used at a Santander branded ATM in Spain (including Balearics and Canaries) is fee free.

The list of countries that enjoy this benefit has now been extended, relatively recently.

"We won't charge you when you use your personal debit card to make withdrawals at Santander cash machines abroad. You'll find our cash machines in Spain, Germany, Poland, Portugal, Argentina, Brazil, Chile, Mexico, Puerto Rico, Uruguay, and the USA."

The Santander Zero credit card is also fee free at their branded ATMs - however no longer on offer to new applicants, only  existing card holders, I was lucky enough to open one before it was pulled.

There is a similar(ish) All-In-One credit card, however it's £3 a month to maintain.......you'd need to check details.

A Santander Everday Current Account is ideal for the countries listed above - no strings attached (ie direct debit requirements) - and there was a £200 (?) switch deal on the go recently, not sure if still on offer.

There is one caution - do not use Euro Automatic Cash ATMs, they have an agreement for Spanish account holders with Banco Santander which does not extend to external Santander cards.