HSBC GMA - How to use..

Camboudica

Hello everyone, 
I need a little advice please. I've opened a HSBC GMA account, solely for holiday use, to avoid debit card charges or ATM fees whilst away. 
It says (if I understand correctly), that I can either transfer GBP into the account and leave it as GBP and when I use the debit card the funds will be deducted in the local currency, or I can transfer in GBP and then convert this to the local currency and hold this in the account, from which transactions will be deducted.
What I can't work out, is why bother converting to local currency, what is the benefit of doing this over just keeping a GBP balance in there? I'm assuming it's to do with FX fees, but can't find any reference to this anywhere. 
Sorry if this seems obvious, I've tried reading the blurb on the website which just gives the basic overview, and various threads on here, but they mostly seem to be about the switch bonuses rather than how the account works.
Thanks. 

NorwichMan

If you want to make a transfer and hold a balance in a currency then you can do that, it is an option. Perhaps you think the exchange rate is favourable and so it makes sense to change a chunk of money now. This is like buying an amount of physical currency in advance to take on holiday. Alternatively, just keep a GBP balance and when you spend in another currency the exchange rate at the time of purchase will be used. That's all, there is no clear and general advantage/disadvantage to doing it either way.

NorwichMan

Also worth considering that, if you are just keeping a £ balance and converting as and when you spend, in my experience the GMA exchange rates are not quite as good as using Chase, Monzo or Barclaycard rewards. Even Zing!, which I believe is owned by HSBC, gives me a better rate than GMA.

PRAISETHESUN

Camboudica said:

Hello everyone, 
I need a little advice please. I've opened a HSBC GMA account, solely for holiday use, to avoid debit card charges or ATM fees whilst away. 
It says (if I understand correctly), that I can either transfer GBP into the account and leave it as GBP and when I use the debit card the funds will be deducted in the local currency, or I can transfer in GBP and then convert this to the local currency and hold this in the account, from which transactions will be deducted.
What I can't work out, is why bother converting to local currency, what is the benefit of doing this over just keeping a GBP balance in there? I'm assuming it's to do with FX fees, but can't find any reference to this anywhere. 
Sorry if this seems obvious, I've tried reading the blurb on the website which just gives the basic overview, and various threads on here, but they mostly seem to be about the switch bonuses rather than how the account works.
Thanks. 

Generally speaking you're correct - there's minimal advantage in converting currencies ahead of time, unless you are predicting a change in exchange rate or have another reason to specifically hold other currencies. The currency conversion fees will be due regardless - either when you convert the currency ahead of time, or at the point of sale. 

Camboudica

Thank you. I think I'll just transfer some GBP into it for my trip this weekend and just leave it in there as is, that way if I don't use it all I can just transfer it back again without the faff of converting it both ways.