Foreign Currency Account

GlasgowExpat2

I’m going on holiday to South Africa and will need to make a bank transfer of £1000 as payment for accommodation at the beginning of November. As the exchange rate is high at the moment is there any way to buy currency now to lock in the exchange rate?

penners324

Wise or Revolut can do this. & HSBC global money

friolento

You get no protection when paying by bank transfer. Any bonafide provider of accommodation should accept card payments, preferably credit card but debit card would do, too

GlasgowExpat2

friolento said:

You get no protection when paying by bank transfer. Any bonafide provider of accommodation should accept card payments, preferably credit card but debit card would do, too

I’m aware of that but my question was about taking advantage of the good current exchange rate. 

DullGreyGuy

Would mirror the recommendations above for Wise but be aware that they are not a bank and as such FSCS protection doesn't apply in the unlikely event that they went bust between now and you being due to pay. 

Nasqueron

GlasgowExpat2 said:

friolento said:

You get no protection when paying by bank transfer. Any bonafide provider of accommodation should accept card payments, preferably credit card but debit card would do, too

I’m aware of that but my question was about taking advantage of the good current exchange rate. 

There are credit card firms with good rates for this purpose. Saving £5 on exchange rates for a potential loss of £1000 is not MSE behaviour!

GlasgowExpat2

Nasqueron said:

GlasgowExpat2 said:

friolento said:

You get no protection when paying by bank transfer. Any bonafide provider of accommodation should accept card payments, preferably credit card but debit card would do, too

I’m aware of that but my question was about taking advantage of the good current exchange rate. 

There are credit card firms with good rates for this purpose. Saving £5 on exchange rates for a potential loss of £1000 is not MSE behaviour!

I think you’re misunderstanding my question. I don’t need to make the payment until November but at the moment as sterling is strong against the rand I would need to pay less for the accommodation. I’m trying to find a way to buy rand now to pay in November 

eDicky

GlasgowExpat2 said:

Nasqueron said:

GlasgowExpat2 said:

friolento said:

You get no protection when paying by bank transfer. Any bonafide provider of accommodation should accept card payments, preferably credit card but debit card would do, too

I’m aware of that but my question was about taking advantage of the good current exchange rate. 

There are credit card firms with good rates for this purpose. Saving £5 on exchange rates for a potential loss of £1000 is not MSE behaviour!

I think you’re misunderstanding my question. I don’t need to make the payment until November but at the moment as sterling is strong against the rand I would need to pay less for the accommodation. I’m trying to find a way to buy rand now to pay in November 

I admire your ability to foresee that the pound will not be as strong, or stronger, in November than it is now...

GlasgowExpat2

eDicky said:

GlasgowExpat2 said:

Nasqueron said:

GlasgowExpat2 said:

friolento said:

You get no protection when paying by bank transfer. Any bonafide provider of accommodation should accept card payments, preferably credit card but debit card would do, too

I’m aware of that but my question was about taking advantage of the good current exchange rate. 

There are credit card firms with good rates for this purpose. Saving £5 on exchange rates for a potential loss of £1000 is not MSE behaviour!

I think you’re misunderstanding my question. I don’t need to make the payment until November but at the moment as sterling is strong against the rand I would need to pay less for the accommodation. I’m trying to find a way to buy rand now to pay in November 

I admire your ability to foresee that the pound will not be as strong, or stronger, in November than it is now...

But it could be worse. A bird in the hand ……

DullGreyGuy

Nasqueron said:

GlasgowExpat2 said:

friolento said:

You get no protection when paying by bank transfer. Any bonafide provider of accommodation should accept card payments, preferably credit card but debit card would do, too

I’m aware of that but my question was about taking advantage of the good current exchange rate. 

There are credit card firms with good rates for this purpose. Saving £5 on exchange rates for a potential loss of £1000 is not MSE behaviour!

I disagree, its exceptionally MSE behaviour given some of the junk recommended by the site for insurance thats only plus point was its price but likely to cost you in the event of a claim because its such poor quality cover. 

Ultimately the OP can make their own risk/reward decision but plenty here recommend taking risks to save modest sums via "self insurance" (in most cases really no insurance) and some will come unstuck if they follow the advice. 

Nasqueron

DullGreyGuy said:

Nasqueron said:

GlasgowExpat2 said:

friolento said:

You get no protection when paying by bank transfer. Any bonafide provider of accommodation should accept card payments, preferably credit card but debit card would do, too

I’m aware of that but my question was about taking advantage of the good current exchange rate. 

There are credit card firms with good rates for this purpose. Saving £5 on exchange rates for a potential loss of £1000 is not MSE behaviour!

I disagree, its exceptionally MSE behaviour given some of the junk recommended by the site for insurance thats only plus point was its price but likely to cost you in the event of a claim because its such poor quality cover. 

Ultimately the OP can make their own risk/reward decision but plenty here recommend taking risks to save modest sums via "self insurance" (in most cases really no insurance) and some will come unstuck if they follow the advice. 

Did you reply to the wrong comment? OP is talking about paying for accommodation on site and would rather do an exchange rate conversion now and potentially lose the money rather than pay on a credit card