Cheap Travel Money

If you need travel money or want to buy off foreign websites, you can easily boost your spending power by £100s with the best exchange rates. This step by step guide finds your cheapest deal for every holiday. It may be the top specialist overseas credit or prepaid card or using the free Travel Money Maximiser tool for the best currency conversion wherever you go.

Plus a special warning for anyone with Halifax, RBS, NatWest, Abbey or Lloyds TSB Debit cards, these are the cards from hell. Use them abroad and you could waste a fortune.

• Currency Power Picker
• Best Buys: The Top Debit/Credit Cards
• Best Buys: Cheapest Foreign Cash
• Best Buys: Best Prepaid Cards
• The Cards From Hell
• Currency Q & A
• Size of The Saving

Everything you need, wherever you're going

Speedily find your cheapest solution

The cheapest way to spend abroad, depends on when and where you’re going, your credit rating and more. Our unique Currency Power Picker swiftly finds your cheapest path.

Are you going abroad in the next four weeks?

Yes

No

There's no time to get a new special credit card, so it's between using existing debit/credit cards, getting foreign currency, or using prepaid cards. To find out which, answer the next question...

. Do you bank with Nationwide, or have a N’wide, Post Office, Saga or Abbey Zero credit card?

Yes

No

Back

Reset

Congratulations. If you have a Nationwide Flexaccount (with a debit card) or one of these specific credit cards, you're already holstering one of the very cheapest ways to spend abroad.

Do be careful with the Abbey card though, you specifically need the Abbey Zero credit card, not any Abbey card. To find out why and how best to use it, read the Cheapest Cards for Overseas Spending section.

If your destination is unlikely to accept cards, or you would like a little cash just in case, read the Cheapest Travel Money section which includes a free tool to get the best deal

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Using your existing, non-specialised plastic could be very expensive. To find out your best route, answer the next question....

. Do you plan to use a Lloyds TSB, Halifax, RBS, IF, Abbey or NatWest Debit card abroad?

Yes

No

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Reset

Do not use these cards! Be very careful, these are the overseas spending CARDS FROM HELL. Not only do they charge everything a normal credit or debit card does, they add an extra spending penalty of around £1 each time you use them. Avoid them at all costs. For more on this read the overseas cards from hell section.

But don’t panic, there’s still a simple solution. You have three options, and the difference between them is relatively small...

• Get travel money before you go.
  
  Read the Cheapest Travel Money section which includes a free tool to compare the top exchange rates.



• Get a special prepaid card for added security.
  
  To avoid carrying wads of cash, Prepaid cards can be acquired much quicker than credit cards. You load cash on, then use it in shops and restaurants just like a debit or credit card. They also offer security advantages over cash; if the card is lost or stolen, the whole balance will be refunded safely to you, minus a fee of around £10. However, you can only spend in Euros or US Dollars on one. Read the Best Prepaid Cards section.



• Use your existing plastic.
  
  Using your existing debit card (barring those above) or a credit card, which is paid off in full at the end of the month so there's no interest, isn't particularly expensive.
  
  If you're going to do it, the best way is to pay for things on the card, rather than taking cash out of a machine and spending that, as then you avoid the fees both debit and credit cards charge for withdrawing cash abroad. If you are going to withdraw cash, then fewer, bigger transactions is cheaper than lots of little ones.

Back

Here you have three options, and the difference between them is relatively small...

• Get travel money before you go.
  
  Read the Cheapest Travel Money section which includes a free tool to compare the top exchange rates.



• Get a special prepaid card for added security.
  
  To avoid carrying wads of cash, Prepaid cards can be acquired much quicker than credit cards. You load cash on, then use it in shops and restaurants just like a debit or credit card. They also offer security advantages over cash; if the card is lost or stolen, the whole balance will be refunded safely to you, minus a fee of around £10. However, you can only spend in Euros or US Dollars on one. Read the Best Prepaid Cards section.



• Use your existing plastic.
  
  Using your existing debit card (barring those above) or a credit card, which is paid off in full at the end of the month so there's no interest, isn't particularly expensive.
  
  If you're going to do it, the best way is to pay for things on the card, rather than taking cash ouit of a machine and spending that, as then you avoid the fees both debit and credit cards charge for withdrawing cash abroad. If you are going to withdraw cash, then fewer, bigger transactions is cheaper than lots of little ones.

Back

Reset

You have enough time to apply for new, specialised plastic. To find if that’s the right option for you, answer the next question...

. Do you bank with Nationwide or have a N’wide, Post Office, Saga or Abbey Zero credit cards?

Yes

No

Back

Reset

Congratulations. If you have a Nationwide Flexaccount (with a debit card) or one of these specific credit cards, you're already holstering one of the very cheapest ways to spend abroad.

Do be careful with the Abbey card though, you specifically need the Abbey Zero credit card, not any Abbey card. To find out why and how best to use it, read the Cheapest Cards for Overseas Spending section.

If your destination is unlikely to accept cards, or you would like a little cash just in case, read the Cheapest Travel Money section which includes a free tool to get the best deal

Back

Reset

In that case, your existing plastic (if you have any!) can be improved upon, so answer the next question.

. Do you have a decent credit rating?

Yes

No

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Reset

If you don't usually have problems being accepted for new cards as you've a decent credit rating, then grab one of the best cards for spending overseas. This will substantially cut your costs every time you're abroad.

If you're going to a destination which is unlikely to accept cards, or you would like a little cash just in case, read the Cheapest Travel Money section which includes a free tool to get the best deal.

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Reset

If you've had applications for credit turned down in the past year (e.g. for credit cards/mortgage/mobile phone contracts) then it's likely you'll be rejected when applying for one of these cards (read more about credit ratings). To find your cheapest currency system, answer the next question...

. Do you plan to use a Lloyds TSB, Halifax, RBS, IF, Abbey or NatWest DEBIT card abroad?

Yes

No

Back

Reset

Do not use these cards! Be very careful, these are the overseas spending CARDS FROM HELL. Not only do they charge everything a normal credit or debit card does, they add an extra spending penalty of around £1 each time you use them. Avoid them at all costs. For more on this read the overseas cards from hell section.

But don’t panic, there’s still a simple solution. You have three options, and the difference between them is relatively small...

• Get travel money before you go.
  
  Read the Cheapest Travel Money section which includes a free tool to compare the top exchange rates.



• Specialist prepaid cards don't do a credit check.
  
  To avoid carrying wads of cash, Prepaid cards can be acquired much quicker than credit cards. You load cash on, then use it in shops and restaurants just like a debit or credit card. They also offer security advantages over cash; if the card is lost or stolen, the whole balance will be refunded safely to you, minus a fee of around £10. However, you can only spend in Euros or US Dollars on one. Read the Best Prepaid Cards section



• Use your existing plastic.
  
  Using your existing debit card (barring those above) or a credit card, which is paid off in full at the end of the month so there's no interest, isn't particularly expensive.
  
  If you're going to do it, the best way is to pay for things on the card, rather than taking cash ouit of a machine and spending that, as then you avoid the fees both debit and credit cards charge for withdrawing cash abroad. If you are going to withdraw cash, then fewer, bigger transactions is cheaper than lots of little ones.

Back

Reset

Here you have three options, and the difference between them is relatively small...

• Get travel money before you go.
  
  Read the Cheapest Travel Money section which includes a free tool to compare the top exchange rates.



• Specialist prepaid cards don't do a credit check.
  
  To avoid carrying wads of cash, Prepaid cards can be acquired much quicker than credit cards. You load cash on, then use it in shops and restaurants just like a debit or credit card. They also offer security advantages over cash; if the card is lost or stolen, the whole balance will be refunded safely to you, minus a fee of around £10. However, you can only spend in Euros or US Dollars on one. Read the Best Prepaid Cards section



• Use your existing plastic.
  
  Using your existing debit card (barring those above) or a credit card, which is paid off in full at the end of the month so there's no interest, isn't particularly expensive.
  
  If you're going to do it, the best way is to pay for things on the card, rather than taking cash ouit of a machine and spending that, as then you avoid the fees both debit and credit cards charge for withdrawing cash abroad. If you are going to withdraw cash, then fewer, bigger transactions is cheaper than lots of little ones.

Back

Reset

The top cards for overseas spending

Use your plastic overseas and you could be hit by a thwack of hidden charges. This includes:

• Adding a 'load' on the exchange rate so £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 specialist overseas credit cards

Four credit cards avoid most hidden charges and market themselves as specialist overseas plastic. Their hope is you’ll also use them in the UK where they’re not so competitive, yet simply get one only for overseas spending and you beat the system (see my Overseas Wallet blog). 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 cheaper to spend on them than withdraw cash and spend it.

• Overall Winner: Santander Zero. Worldwide 0% exchange rate load & ATM withdrawals.

  The Santander Zero (formerly Abbey) card has no foreign exchange loading anywhere, so you get the best possible exchange rate, and uniquely it doesn't charge a fee for withdrawing cash.
  
  The only negative is its high 27.9% cash withdrawal interest rate, which you pay even if you clear the card in full. Yet as that’s roughly £2 for a month per £100, it's still cheaper than paying interest PLUS the cash withdrawal fees on other cards.
  
  This card also has a decent balance transfer offer; 0% for twelve months with a 3% fee. However, if you're using it for spending abroad, don't do a balance transfer too, as this can end up costing you big.

  Quick Stats. European Load: 0%. Worldwide Load: 0%. Cash withdrawal fee: £0. APR: 18.9%. Interest charged on cash withdrawals even if paid off in full: Yes, 27.9%.
  

• Next Best: Post Office. 0% load worldwide.

  The Post Office* credit card has no foreign exchange loading anywhere, so you get the best possible exchange rate at all times.
  
  It does charge a 2.5% fee (minimum £3) for cash machine withdrawals though, so Santander Zero beats it if you'll be taking cash out while abroad..

  Quick Stats. European Load: 0%. Worldwide Load: 0%. Cash withdrawal fee: 2.5% (min £3). APR: 16.9% Interest charged on cash withdrawals even if paid off in full: Yes, 20.83%

• Alternatives: Nationwide & Saga. 0% load, but only in Europe, and ATM fees.

  There are two other good credit cards that, if you haven't already, probably aren't worth ditching for Santander Zero or Post Office.
  
  If you're over 50, Saga has no loading in Europe but charges 1% elsewhere, and has an ATM fee of 2% (min £2); though a big plus here is that it charges no interest on cash withdrawals if you do repay in full. Nationwide is fees-free in Europe, but charges 1% for worldwide purchases, and charges a 2.5% cash withdrawal fee everywhere.

  Saga Quick Stats. European Load: 0%. Worldwide Load: 1%. Cash withdrawal fee: 2% (min £2). APR: 11.9% Interest charged on cash withdrawals even if paid off in full: No. Cash withdrawal interest: 19.6%

  Nationwide Quick Stats. European Load: 0%. Worldwide Load: 1%. Cash withdrawal fee: 2.5% (min £3). APR: 16.9% Interest charged on cash withdrawals even if paid off in full: Yes, 27.9%

The Top Debit Card

The only card of note is Nationwide's Flexaccount Visa Debit card. For European spending, this beats every card out there, even pipping the specialist credit cards.

It doesn't charge a load fee in Europe, but does charge 1% worldwide. There's no charge for using ATMs (apart from the load fee mentioned above) and withdrawing cash is interest free (unless you’re overdrawn). However, to get the debit card you need Nationwide's bank account, and while it isn't bad, it's not the best buy (see the Bank Accounts guide).

Nationwide wants you use this as your main current account, yet you can sneakily avoid this by setting up a free savings account at the same time as opening the Flexaccount; its e-savings plus account can be opened with just £1. Then you can just pre–load the Flexaccount for spending before travelling abroad.

Then again, there is one other reason to stick with a credit card rather than debit card overseas, thanks to Section 75 consumer protection. Read the full article on Section 75 protection.

Quick Stats. European Load: 0%. Worldwide Load: 1%. Cash withdrawal fee: None. Interest charged on cash withdrawals even if paid off in full: N/A. Cash withdrawal interest: None unless overdrawn when its 18.9%

Getting the cheapest foreign cash

Don’t ever think that commission free automatically makes it a winner, 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 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, incorporating commission charges and rates for every country.

TravelMoneyMax.com can only search companies with an online presence, luckily though 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 West London.

If you live near these it's worth checking them out; if they do start websites and delivering currency, they'll be added to TravelMoneyMax.com.

Beware when paying on credit OR debit cards!

Sadly, buying currency from a bureau de change in the UK on a credit or debit card isn’t always treated as a UK transaction. All credit cards and some debit cards charge an additional fee on top of what you pay the bureau de change. See a full list of cards that charge.

The cards that charge...

• All Credit Cards. All credit cards charge a fee of around 2.5% (minimum £3) when you buy foreign currency; it's treated like withdrawing cash from an ATM. In addition, you could be charged interest from the day you make the purchase, even if it's repaid in full at the end of the month. See a full table of charges
  
  
• Visa Debit cards. If you have one of the following debit cards, you'll be charged a 2%-ish fee. The banks that charge issue 'Visa Debit' (previously Delta) cards, though that doesn’t mean every Visa Debit card charges.
  
  

Debit cards that DO charge a fee	Debit cards that DON'T charge a fee
Abbey	Coventry BS
Alliance & Leicester	First Direct
Barclays	Halifax
Cahoot	HSBC
Co-op	Intelligent Finance
Lloyds TSB	Nationwide
Smile	Natwest
	RBS

Got a card that charges?

There are a number of options...

• Use a different card if possible. This is the simple option.
  
  
• With debit cards withdraw cash and pay with that. Take the money out of a UK cash machin with a debit card and use that to pay at a high street bureau de change and you'll avoid the fee, though check the gain isn't defeated by a worse rate.
  
  
• Spend on the card itself. With most of the cards you're likely to be better off by just spending on it while overseas, than buying foreign cash with it.
  
  The big exceptions are Lloyds and Abbey debit cards, which if you spend on them abroad will slap ANOTHER charge on top every time you spend in a shop, as well as the normal foreign currency fees - these are the DOUBLE cards from hell.

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

The worst place to exchange money is the airport. Don’t assume you’ll get the same rate there as at a bureau de change’s high street branch or online quote, it's usually much worse.

The best thing to do if you want the convenience of airport pick–up, is order it online first and then ask to collect it at the airport, you get a much better rate.

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.

Their big advantage over cash is if you lose your card, for a fee of around £10 most providers will replace it, with all the funds in tact. 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. The cheapest overall, plus free £5 bonus.

  The FairFX* prepaid card, which must be applied for online, charges no spending or foreign 'loading' fees, and can be topped up for free by debit card or bank transfer. Apply via its own website and there's a £9.95 application fee, but the link above takes you through comparison site Moneysupermarket, meaning the fee is waived provided you load more than €10/$20.
  
  Currently if you top-up at least £500 when opening, it'll boost the amount you load by £5. This bonus means the overall exchange rate challenges the top credit cards for overseas spending. When we compared the rates, the method that gave the most bang for your buck changed daily.
  
  However, with FairFx it's the rate on the day you load up, not spend that counts. So if the pound strengthens after you load the card, you will lose out. Though conversely if it weakens you'd gain.

  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).

  FairFX Quick Stats. European Load: 0%. Worldwide Load: 0%. Exchange Rate: FairFX's own rate, determined daily. Cash withdrawal fee: €1.50/$2. Currencies: Euros/Dollars. Topping up: Free via Debit card online.

• CaxtonFX. The next cheapest

  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.
  
  The minimum amount of foreign currency you can load up the card with is €150/$200, and there's no ATM withdrawal charge outside the UK.

  Caxton Quick Stats. European Load: 0%. Worldwide Load: 0%. Exchange Rate: Caxton's own rate, determined daily. Cash withdrawal fee: None outside UK, €2/$3 in the UK. Currencies: Euros/Dollars/Sterling. Topping up: Free via Debit card online/phone.

• Travelex Cash Passport. Extra currencies or if you need a card quick

  Not far behind is the foreign exchange giant Travelex’s Cash Passport, which also offers a few more currencies, namely Euros, US Dollars, South African Rand and Australian, Canadian and New Zealand Dollars.
  
  There's no fee for spending abroad, but it does charge 2% when you top up online, by phone or in stores. 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.

  The big boon over the above cards is it's available at Travelex branches, plus Thomas Cook and Co-op Travel agents, meaning you can get one mega quick if your holiday is soon, though buy there and you can only then top-up in branches (not online), and you'll be charged that shop's commission.

  It charges a £2 monthly charge if the card goes unused for twelve months. If you’re heading towards that situation, simply cancel the card as it’s rarely worth it.

  Travelex Quick Stats. European Load: 0%. Worldwide Load: 0%. Exchange Rate: Travelex's own rate, determined daily. Cash withdrawal fee: £0. Currencies: Euros, US Dollars, South African Rand and Australian, Canadian and New Zealand Dollars.. Low Usage Charge: £2/month if unused for 12 months. Topping up: 2% (min £3).

The Debit and Credit cards from hell

While the right card is absolutely the best way to spend abroad, the wrong one is absolutely the worst way.

Use most plastic overseas and you could be hit by a thwack of hidden charges. This includes a load on the exchange rate so £100 of foreign currency costs you £103; cash withdrawal fees on both credit and debit cards; as well interest charges even if you pay off in full. More info: Read the full hidden holiday spending charges note.

These are bad enough, yet six specific debit cards have yet another fee, so they're my cards from hell. Let's make this plain – do not use the following cards for spending overseas; any of the methods above beat them.

When it comes to credit cards, the ones from hell are simple

Any credit card which you’re not paying off in full, is a nightmare and will cost you serious cash.

If you can’t pay it off in full, choose based on the lowest interest rate for spending, not the cheapest overseas card.

Currency Q&A

Q. When’s the best time to buy currency?

A. There’s no right answer to this, which is why this guide focuses on how to get the best rate at any moment. If the pound is strong and the Euro or Dollar weak, many people think, "I’m not going away for a few months, but I’ll grab my cash now.". If the pound's weak, many want to hold off.

There’s nothing wrong with doing this, but you need to understand it's currency speculation and you’re effectively gambling on exchange rate moves.

The fact the pound is strong at any time doesn’t mean it won’t get stronger and therefore buying your currency early can lose you money. Conversely, the fact it's weak doesn't mean it won't get weaker. Playing the currency market is something highly paid traders in the City can’t always get right. Those that do make a fortune; those that don’t, lose it.

Q. Do the same rules apply when buying off overseas websites?

A. Absolutely, you’ll tend to pay the same costs on foreign websites as if you were actually abroad and spending there. If you’re paying in a foreign currency all the usual charges apply – the same cheap cards are cheap, the same expensive ones costly.

Q. If I’m abroad spending on plastic & they offer to let me pay in pounds, is it worth it?

A. No. This is called dynamic currency exchange, and should be avoided. Often the rate you get will be appalling and someone’s making big money out of it. If you’ve got one of the specialist overseas cards you’ll get a much better rate paying in the foreign currency not pounds. And even if you’re using a normal card as you’ve no idea of the relative exchange rates they could be playing you for a fool; so it's always best to stick with paying in the foreign currency.

If you're travelling to Spain, be especially careful. Some Spanish banks, particularly giant Santander, have started to ask UK cardholders if you want to have your money converted into Sterling when withdrawing Euros from ATMs. Always say No; the rate you'll get is often much worse than the rate you’d be given by your own plastic provider when it converts Euro withdrawals, although the exact rates depend on which plastic you're holstering.

Q. Should I get my travel money out in the UK or wait till I’m overseas?

A. If you’re going to get the cash out on a specialist overseas card, then it's better to wait until you’re there.

However, if you’re just planning to use a normal card or convert pounds when you’re out there, there’s no guarantee you’ll get a better rate – and certainly changing in most hotels is normally a bad idea as they give poor rates. Overall it's safer to use the Travel Money Maximiser and get the cheapest rate while you’re here.

Q. My card was blocked while I was abroad, is there anything I can do to prevent this?

A. To prevent fraud, most card companies track ‘unusual transactions’ and if there’s evidence they slam the breaks on and stop the card being accepted. The best thing to do, unless you’re a regular traveller who spends overseas a lot, is call up the card company to let it know you’re going abroad. Usually, though sadly not always, this stops any problems. If it happens to you while you’re away call up the card company as soon as possible.

Spend £1,000 in a year and withdraw £750 worth in cash using a Halifax debit card and the total fees/charges are over £120. With Santander's credit card it's just £16 while Nationwide's debit card doesn't charge in Europe and is £8.40 elsewhere.