Cheap Travel Money Top cards for spending abroad

Going abroad, or spending on foreign websites? You can save £100s by using specialist travel spending cards for the best possible exchange rates.

This step-by-step guide includes best buy credit, debit and prepaid cards, plus how to compare currencies with our free TravelMoneyMax tool.

Also see 50 Overseas Travel Tips for more tricks to save

Five facts everyone should know

How good is your current plastic?

Use your plastic overseas and you could be hit by a thwack of hidden charges (for full details, read the hidden holiday spending charges note). These charges include:

• Adding a 'load' on the exchange rate so spending £100 of foreign currency actually costs you £103
• Cash withdrawal fees on both credit and debit cards
• Interest charges even if you pay off in full
• Some even charge a penalty each time you spend.

The overall best cards are detailed below. First, find out how much cards already in your arsenal charge abroad - as you may not need to switch, or have time to apply before your hols.

To help, we've built a quick checker to find out what you'll pay when using any cards in your wallet abroad.

If you think any extra cards should be added to the tool, please email us and we'll see what we can do.

Avoid the debit cards from hell

The top cards for overseas spending

If you're looking for cards offering more than overseas spending, see our credit card guides page.

The credit cards below avoid most hidden charges and push themselves as specialist overseas plastic, hoping you’ll also use them in the UK where they’re not so competitive. Simply get one only for overseas spending and you beat the system (do you have an overseas wallet?).

However, even on these cards, there's a trap, so always follow the golden rule:

Set up a direct debit to repay in full every month,
or the interest charges dwarf the cheap currency gains.

On these cards, it's far cheaper to spend on them than withdraw cash and spend it.

Halifax ClarityWorldwide 0% load & no cash withdrawal fee

• Loading (exchange rate fee). Europe: 0% | Worldwide: 0%
• Cash withdrawals. Fee: FREE | Interest: Yes even if repaid in full
• Representative APRs. Spending: 12.9% | Cash: 12.9% (see official rate example)
• Card issuer: Mastercard

Best card to use for spending and ATM withdrawals, as it gives a 'perfect' exchange rate and few other fees

The Halifax Clarity* credit card has no foreign exchange fee anywhere in the world (you can use our pre-apply eligibility check for this card), so you can get the best rate possible. Plus there's no fee for cash withdrawals, though you will be charged interest on them even if repaid in full.

The rate for cash withdrawals is a fairly low 12.9% representative APR (if you don't get this rate, you'll be charged up to 21.9%). This works out around £1/month per £100 withdrawn.

Cost of £100 worth of..	Spending	Cash withdrawals	Total
Worldwide	£0	approx £1/month	£1

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As an extra bonus, if you have a Halifax Reward current account and apply for the Reward Clarity, in branch or by phone, you'll get £5 each month you spend over £300 in the UK or abroad on the credit card (ensure you repay in full every month). Read Best Bank Accounts guide for how it measures up.

If you've already got one of the cards below, it's probably not worth switching to this one as they're nearly as good.

Over 50's: Saga*Interest free cash w/drawals (if repaid) & 0% load worldwide

• Loading (exchange rate fee). Europe: 0% | Worldwide: 0%
• Cash withdrawals. Fee: FREE | Interest: None if repaid in full
• Representative APRs. Spending: 11.9% | Cash: 19.6% (see official rate example)
• Card issuer: Visa

For over-50s, the Saga* credit card has no foreign exchange fee. This means you get the best possible rate worldwide (you can use our pre-application eligibility check for this card) and, unlike the other cards here, you won't be charged interest on cash withdrawals.

If you withdraw cash on the card, you'll be charged a 2% (min £2) fee. There's no interest charge if you pay your balance off in full, but if you don't, your cash withdrawal will have interest charged of 19.6% representative APR.

Cost of £100 worth of..	Spending	Cash withdrawals	Total
Worldwide	£0	£2	£2

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It also offers 0% for nine months on balance transfers and 0% on spending, but this can be beaten - see the guides for full info.

Nationwide current account custs ONLY0% load worldwide. Plus 0.5% cashback & other perks

• Loading (exchange rate fee). Europe: 0% | Worldwide: 0%
• Cash withdrawals. Fee: 2.5% (min £3) | Interest: Yes even if repaid in full
• Representative APRs. Spending: 12.9% | Cash: 27.9% (see official rate example)
• Card issuer: Visa

While this card isn't quite as good as the Halifax card above, it offers a range of benefits that make it a decent all-rounder card. However it's ONLY available to new or existing FlexAccount*, FlexDirect* or FlexPlus* current account customers (see Best Bank Accounts and Best Premier Accounts for how they compare).

The Nationwide* Select credit card has no foreign exchange fee anywhere in the world, so you get the best possible rate. But it does charge a 2.5% fee for cash withdrawals and you'll be charged 27.9% representative APR interest, even if you repay in full.

Cost of £100 worth of..	Spending	Cash withdrawals	Total
Worldwide	£0	approx £2.30/month + £3	£5.30

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It also has other perks:

• 20 mths 0% on shifted debts. You can shift existing debts from other cards to this at 20 months 0%, for a 1.55% fee of the amount switched. If you do this AND 0% spending, pay off ALL debts in 20 months to ensure you pay no interest.
• 0.5% cashback on spending. The card pays 0.5% cashback on spending in the UK (50p per £100). You can earn more (up to 5%) on the Top Cashback Cards, so if you don't need the other Nationwide perks, try those.

• 0% on purchases. The card also gives 12 months 0% on new spending, although you can get better. See full 0% Spending Credit Cards guide for how it compares.
  
  If cutting existing debt costs is your focus, you can get up to 22 months 0% - see Balance Transfer Cards.

While the card offers 0% on spending, you still must pay at least the minimum repayment each month, otherwise you'll lose the deal. After the 0% ends, the rate jumps to 12.9% representative APR.

Think before adding the 'insurance'

Payment protection insurance is commonly sold with credit cards - the idea is it'll make some payments for you, usually for a year, if you are unable to (eg, if you lose your job).

There has been a myriad of cases where it has been mis-sold. Many, borrowers didn't realise they were signing up for it, or that it was actually totally unsuitable for them. Some big lenders have been fined.

The protection isn't always bad, though policies sold with cards are often overpriced (you pay a monthly amount depending on the size of your balance). If you want it, compare the lender's cover with standalone providers such as Paymentcare or Best Insurance.

Always be vigilant to check you aren't getting more than you bargained for when you fill in the application, then check your statement each month to check you aren't inadvertently paying for extras if you didn't ask for them.

Do you want a debit card instead?

It’s also possible to get load free debit cards – but to do that you’ll need to genuinely shift bank account. It’s questionable whether its worth it just for this (as you’re forgoing other bank account perks – see best bank accounts) which is why we favour just getting a credit card used right.

But if you can't get a credit card due to a weaker credit rating you have a few options.:

• Norwich & Peterborough BS current accounts have 0% overseas spending fees and no cash withdrawal fee worldwide. However to avoid all charges you must meet some requirements. The Gold Classic card charges a £5 fee unless you pay in £500 per month (approx £6,100 salary) and The Gold Light card charges £5 if you make fewer than five transactions a month.

• Load-free debit card (London area only). New high street player Metro Bank charges no foreign exchange loading or cash withdrawal fees on the card that comes with its current account. However, you have to go to one of its branches, all in and around London, to get one (it's opening more in future, but all in south-east England).

Getting the cheapest foreign cash

If you want to get the best deal for spending overseas, it involves a combination of the best exchange rate and the lowest commission (read more on commission versus rate).

To cut through this, we’ve built a special daily (often hourly) updated free website at TravelMoneyMax.com. It whizzes to all the main online bureaux de change to compare who'll give you the most foreign cash, after all charges and exchange rates.

Though do remember if your money is held by a currency provider - if you're buying in advance, for example - it's not protected if it goes bust, so be careful.

TravelMoneyMax.com can only search companies with an online presence, though luckily these usually undercut their high street competitors. It’s occasionally possible to get a better rate at some local specialist dealers.

Yet this is rare and they’re only located in areas with large amounts of overseas visitors where competition on rates is very high, such as Bayswater in central London.

Beware when paying on credit cards!

Pick it up at the airport, but always pre-order

Prepaid cards for added security

Prepaid cards do exactly what they say on the tin. You load cash onto one, and then it can be used in shops and restaurants just like a debit or credit card.

While not quite as cheap as the specialist credit or debit cards, the vast majority are accepted by most shops which take the Maestro network (the substantial bulk) both in the UK and abroad.

Effectively, loading the card works in a similar way to cash. It's the day you load the card/buy the cash that counts. If the pound weakens afterwards, you've gained. If it strengthens, you'll lose out.

Their big gain over cash is if you lose your card, you can get it replaced with all funds intact, for a fee of around £10. Lose a wallet of dollar bills in Times Square, and it's gone for good.

Prepaid cards have a variety of different charges, but the two top cards keep these to a minimum. More info: Prepaid Card Fees

FairFX*Top pick card, no spending or 'load' fees

• Cash withdrawals: €1.50 / $2
• Loading (exchange rate fee): 0%
• Currencies: Euros/dollars
• Top up: Free via debit card online
• Exchange rate: FairFX's own rate, determined daily

The FairFX prepaid card charges no spending or foreign 'loading' fees, and can be topped up for free by debit card or bank transfer. You can get the card in euros, dollars or sterling to use anywhere, although the sterling one has much higher fees.

There are two offers available via comparison site MoneySupermarket, the links take you there. With both, the £9.95 application fee will be waived if you top up more than €60/$75. Plus, get the FairFX Euro* card and when you load more than £500 on it you'll get a £10 bonus. Or you can get a £5 bonus when loading over £500 onto the FairFX Dollar* card.

If you spend in a different currency to the one you selected, you'll be hit with a 1.4% charge for every transaction.

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With FairFX, it's the rate on each day you load up (not the day you spend) that counts. So if the pound strengthens after you load the card, you will lose out. Conversely, if it weakens you'd gain. You get a different rate each time you load the card.

The only cost is €1.50/$2 to withdraw cash from an ATM, less than most credit or debit cards. You get FairFX's own exchange rate, which changes daily but generally beats the other prepaid cards and cash rates (compare it with TravelMoneyMax.com's best).

The next cheapest: CaxtonFX*No fees, but slightly worse exchange rate

• Cash withdrawals: Free outside UK
• Loading (exchange rate fee): 0%
• Currencies: Euros/dollars/sterling
• Top up: Free via debit card online / phone
• Exchange rate: Caxton's own rate, determined daily

Next best is Caxton FX*, again available online, which also has no spending or foreign load fees and can be topped up online or over the phone for free by debit card. You get Caxton's exchange rate, which is usually worse than FairFX but beats the best you’d get for cash.

No fees, but not as good exchange rate

The euro and dollar versions of this card will charge less than the Global Traveller card, which can be used worldwide, and they are the ones described here.

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Remember, it's the rate on each day you load up (not the day you spend) that counts. If the pound strengthens after you load the card, you will lose out. Conversely, if it weakens you'd gain. You get a different rate each time you load the card.

The minimum amount of foreign currency you can load up the card with is £100/€150/$200. There's no ATM withdrawal charge outside the UK, although the provider of the machine you use may levy charges so check first.

Travelex Cash PassportIf you need a card quick

• Cash withdrawals: FREE
• Loading (exchange rate fee): 0%
• Top up: Free (2% for sterling card)
• Currencies: NZ $/AUS $/SA rand/euros/US/dollars/sterling
• Exchange rate: Travelex's own rate, determined daily

Not far behind is foreign exchange giant Travelex’s Cash Passport. There's no fee for spending abroad or to top up online, by phone or in stores.

No fees for foreign currencies

You’ll get the prevailing Travelex exchange rate, generally not as good as FairFX/Caxton, and the exchange rates you get on the best credit and debit cards.

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But remember, it's the rate on each day you load up (not the day you spend) that counts. If the pound strengthens after you load the card, you will lose out. Conversely, if it weakens you'd gain. You get a different rate each time you load the card.

The big boon over the above cards is it's available at Travelex branches, plus Sainsbury's travel money stores, meaning you can get one mega-quick if your holiday is soon, though buy there and you can only then top-up in branches (where you'll be charged that shop's commission) or by bank transfer.

It charges £2/€3/$3.50 each month if the card goes unused for 12 months. If you’re heading towards that situation, simply cancel the card as it’s rarely worth the extra cost.

ICE Travellers CashcardFee-free, but slightly lower rates

• Cash withdrawals: FREE
• Loading (exchange rate fee): 0% for euros/dollars
• Top up: Free
• Currencies: Euros/US dollars/sterling
• Exchange rate: ICE's own rate, determined daily

The next best pick is foreign exchange bureaux ICE’s Travellers Cashcard. There are no fees at all on the Euro or US dollar cards, and you'll get 1% cashback on all foreign transactions made on the card before Dec 2013.

No fees and 1% cashback

The rate isn't as good as branch or online rates, but as there are no other fees, plus cashback, it works out as a good option. You'll be able to see the rate before you apply too.

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Remember, it's the rate on each day you load up (not the day you spend) that counts. If the pound strengthens after you load the card, you will lose out. Conversely, if it weakens you'd gain. You get a different rate each time you load the card.

You can order the card online and it'll be delivered in around five days. Plus you'll get a backup card to use if the original gets lost or stolen. You'll just need to call it so ICE can transfer the balance.

There is a sterling card available, but you'll be charged a 1.85% load fee.

What happens if the prepaid card company goes bust?

All prepaid cards listed are backed by a bank or building society. If the prepaid card company goes bust, then the bank or building society issuing the cards will be liable for your cash.

However if the bank or building society who provides the card goes bust, your cash is NOT protected. While with some institutions the money can be ring-fenced in separate accounts (though it may be with the bank themselves) there is always a very minor risk as the money is not counted as a deposit, so it is not covered by the Financial Services Compensation Scheme.

So as a precaution, consider it only a card to have enough cash on for immediate spending requirements rather than as a place to store your cash.

Currency Q&A