Travel money tips

Cheap travel money tips
The cheapest ways to get foreign currency & spend overseas

Planning your holiday in advance can ensure a stress-free experience, but many people overlook the importance of organizing their payment methods for abroad. While it may seem like a minor detail, making the wrong choice could end up costing you £100s. This guide will help you explore the four primary payment options, so you can make the most of your money while traveling.

Travel money need-to-knows

Here are six tips to help you make the most of your holiday budget. If you don’t follow these suggestions, it could end up costing you significantly.

1 – Spending the wrong way can cost large

Spending incorrectly can make your holiday more expensive than necessary.

If you get this wrong, you could end up paying extra just to make payments.

Here’s how much spending €1,000 would cost in pounds using different methods. This example assumes five €100 cash withdrawals and 20 card transactions of €25 each:

• Best specialist credit/debit card (paid in full): £818
• Cash from the cheapest bureau (pick up in London): £821
• Cash from M&S on the high street: £829
• Using a debit card with spending fees: £872
• Changing money at the airport (without pre-ordering): £949

The best option is clear – apply for a specialist overseas card and use it whenever you travel.

Below, we’ve detailed the best travel credit cards, travel debit cards, and prepaid cards – and cash if that’s your preference.

2 – If asked ‘Pay in pounds or euros?’, say EUROS

When paying by card abroad, many hotels, shops, and ATMs give you a choice. If you opt for pounds, the retailer handles the currency conversion, but their rates are often less favorable than your card’s rates.

For those with a top travel-friendly card, always select the local currency, as your card’s exchange rate is typically unbeatable.

If you’re using a standard credit or debit card, the choice can be tricky. Sometimes, the card machine displays a ‘non-sterling transaction fee’. If this fee is below 2.5%, go with pounds; if it’s higher, choose the local currency instead.

3 – Find out what your existing cards are charging

Don’t use your current cards abroad without checking their fees first—explore better options before you travel.

Before using any card internationally, make sure to check the fees associated with your existing cards using the tool below. Compare those costs with our recommended travel cards that don’t charge extra fees. This way, you’ll be prepared to spend wisely with the most cost-effective card before you depart.

Beware using any of these cards overseas

Let’s be clear: avoid using the cards listed in this section for purchases abroad. Unless you’re making transactions in euros within the EU, Iceland, Liechtenstein, or Norway, these cards impose an additional fee of 50p-£1.50 on top of the standard exchange-rate charge.

For example, if you buy an item worth £5 in a store in the USA, with the most expensive of these cards, you could end up paying as much as £6.60 due to the fees and charges.

The cards with a spending charge

Debit card	Exchange load (mark-up)	ATM charge (1)	Spending charge (1)
TSB (2)	2.99%	1.5% (min £2, max £4.50)	£1
Bank of Scotland	2.99%	£1.50	50p
Lloyds Bank	2.99%	£1.50	50p (3)
Halifax	2.99%	£1.50	50p

(1) Except on payments in euros within the European Economic Area (EEA). (2) Excludes TSB’s Spend & Save Plus account which has no overseas fees. (3) Excludes Lloyds’ Platinum, Premier and Mayfair accounts which all have no overseas purchase fees.

4 – Don’t buy travel cash or load a prepaid card using a credit card – you’ll be charged interest

Using a credit card to purchase currency at a bureau de change or online through the TravelMoneyMax comparison tool can lead to unexpected costs.

This is because purchasing currency is often treated as a cash withdrawal, which may result in various fees. These can include cash withdrawal charges, interest, or even an additional fee from the currency exchange for using a credit card.

Additionally, some card issuers consider loading a prepaid card with a credit card as a cash withdrawal.

Therefore, if you’re buying currency or loading a prepaid card, it’s best to use a debit card, which doesn’t carry these fees, or withdraw cash and use that for payment instead.

5 – Hiring a car abroad? You’ll likely need a credit card

Most car rental companies require a credit card for vehicle pick-ups, rather than accepting debit or prepaid cards. Since you’ll often be handling payments or deposits in foreign currency, and these amounts can be significant, using a specialized overseas card is especially advantageous in such situations.

6 – Make sure your ‘overseas wallet’ is fully stocked – here’s what to take

Do you belong to the ‘overseas wallet or purse’ club? We were the first to introduce this concept, and it’s a smart strategy to ensure you’re well-prepared for your travels. His reasoning is that some items are specifically needed when you’re abroad:

• Specialist overseas credit cards: These cards may not be very useful in the UK, so keep them in your overseas wallet until your trip.
• Free GHIC/EHIC card: Essential for emergency medical care in Europe. Refer to our guide on how to obtain or renew your GHIC/EHIC card.
• Driving licence & international driving permit: Make sure you know when and why you need these by reviewing our comprehensive Driving Licence Renewal Guide.
• ESTA number for travel to the US: Consult our ESTA application guide for details.
• Leftover foreign currency: Handy from previous travels, especially if you can’t access an ATM immediately.

The best travel money options

The type of travel money you choose largely hinges on your personal preferences, as each option offers its own set of benefits and drawbacks. You have five primary payment methods to consider:

• Travel credit cards – offer excellent exchange rates and protection for purchases.
• Travel debit cards – provide competitive exchange rates without requiring a ‘hard’ credit check.
• Prepaid travel cards – allow you to secure a rate before you travel.
• Cash – serves as a reliable backup for places that don’t accept cards.

Option 1: Travel credit cards

When using a credit card internationally, your card issuer typically receives near-optimal exchange rates. However, they often impose a ‘non-sterling exchange fee’ of around 3%. This means that spending £100 on euros or dollars will actually cost you £103, and some cards may include additional fees on top of that.

There are specialized credit cards designed to avoid this fee, allowing you to benefit from the same exchange rate the bank gets. However, it’s crucial to use these cards only if you can set up a direct debit to pay off the balance in full each month. Failing to do so could lead to interest charges that outweigh the benefits of avoiding the exchange fee. As with any credit card, obtaining a travel credit card requires passing a credit check.

Travel credit cards are good if…	Travel credit cards may not be right if…
✔️ You want near-perfect exchange rates	⚠️ You’ve a poor credit score
✔️ You want Section 75 protection	⚠️You won’t repay IN FULL every month

 

See our Top cards for travelling abroad guide for more options, though our two top picks are…

Warning: Cash Withdrawals on Credit Cards Can Impact Your Credit Report

Using a credit card to withdraw cash, particularly with specialized international credit cards, might seem economical. However, this action is recorded on your credit report and could have unforeseen implications. While not necessarily detrimental on its own, if you apply for a loan or other credit shortly afterward, potential lenders may interpret the cash withdrawal as a sign of financial distress, indicating that you might be willing to incur high-interest costs for quick funds.

While a single cash withdrawal is unlikely to be the sole reason for a loan rejection, it can contribute to a negative impression when combined with other unfavorable items on your credit report. To protect your chances, especially if you are planning a significant credit application, such as for a mortgage, it is wise to avoid using your credit card for cash withdrawals in the months leading up to your application.

For detailed information on cash withdrawals using a credit card, refer to the full guide.

Option 2: Travel debit cards

You can obtain debit cards that do not impose ‘non-sterling transaction fees.’ Typically, this requires opening a new bank account. However, unlike the credit cards mentioned earlier, our recommended options only perform a ‘soft’ credit check, ensuring that your credit application won’t impact your future credit opportunities.

Once approved, you can use these debit cards as an additional account without changing your current bank. Keep in mind, though, that unlike with credit cards, you’ll need to deposit funds into the account before you can use it, which some people might find inconvenient.

Travel debit cards are good if…	Travel debit cards may not be right if…
✔️ You’re happy to open a (new) bank account to get one	⚠️ You switch from a better account to get one
✔️ You frequently withdraw cash, as there are no charges	⚠️You want Section 75 protection (though they do allow chargebacks)

 

For more debit card options, see Top cards for travelling abroad. Our top picks are…

Chase Mastercard	Fee-free spending and cash withdrawals worldwide, plus 1% cashback for at least a year. Unlike the credit cards above, Chase only runs a ‘soft’ credit check when you apply – so there’s no permanent mark on your credit report. To use Chase, you’ll need a device with at least iOS 14.1 or Android 8.1.   You get 1% cashback on most debit card spending for at least a year (max £15/month), though there are some exclusions. There’s no minimum pay-in required in the first year, but you’ll have to pay in £1,500+/month after that to continue getting cashback.   If you’re thinking of switching to Chase, or using it as your main bank account, read our Chase review.
	– No fees on spending or at ATMs – ATM limits: £500/day, max £1,500/month overseas- 1% cashback on most spend for at least a year – Soft credit check	Apply*
First Direct Mastercard	Fee-free spending and cash withdrawals worldwide, TOP service, 7% regular saver and £250 0% overdraft for many. First Direct has been top or near top of every customer service poll we’ve ever done, and comes with a linked 7% regular saver which you can put up to £300/month in, and gives many an ongoing £250 0% overdraft. Unlike with Chase above, here there’s a full credit check.   Full info, including crucial eligibility criteria, in our First Direct review.
	– No fees on spending or at ATMs – ATM limits: £500/day- TOP service – Full credit check	Apply

 

Top alternative debit cards

If the options above don’t fit your needs, we have additional recommendations that are also solid choices. All of them are free to use abroad, though some might have interest charges or ATM fees and limits.

• New users of the Currensea Mastercard debit card can earn £10 cashback by spending £100 or more in any foreign currency within the first six months. Unlike other credit and debit cards featured here, the Currensea card operates differently. It connects to your current bank account through Open Banking. When you make a purchase or withdraw cash using the Currensea card, it deducts the amount from your linked current account in pounds (via direct debit), thereby avoiding the non-sterling transaction fees and ATM charges that many banks impose.

While the exchange rates for common currencies like euros and US dollars might be slightly less favorable compared to the other cards mentioned, the difference is minimal. Plus, if you like the idea of a card connected to your existing account, the cashback offer is an added benefit. For more details, check out our full Currensea review.

• Starling’s Mastercard debit card offers the advantage of no fees or interest on international purchases and ATM withdrawals (with a daily limit of six withdrawals or £300). Similar to Chase, it only necessitates an ID verification rather than a comprehensive credit check. For more details, check out our Starling review.
• Kroo, a digital-only bank, offers a Visa debit card with no fees for international purchases. However, for withdrawals from overseas ATMs, you can access up to £200 per month without incurring fees; anything beyond this threshold will be subject to a 3% charge. Starting from 31 October, ATM withdrawal fees will be introduced. Additionally, Kroo provides a competitive savings interest rate of 4.1% AER on balances up to £500,000 and requires just an ID verification to open an account. Check out our comprehensive review of Kroo for more details.

Option 3: Prepaid travel cards

With a prepaid card, you first load it with funds before traveling, and then use it similarly to a debit card. If the card is lost, you can contact the provider to block it and safeguard your money.

One significant benefit of prepaid cards is the ability to pre-load cash at a fixed exchange rate, rather than dealing with fluctuating rates when spending, as you would with a credit or debit card. This allows you to know precisely how much you have available in the local currency for your trip, though you will still be affected by currency fluctuations.

However, keep in mind that some locations do not accept prepaid cards. Notably, car rental companies and pay-at-the-pump gas stations are among those that often do not accept them, so be mindful of these exceptions.

Prepaid travel cards are good if…	Prepaid travel cards may not be right if…
✔️  You want to lock in a rate	⚠️ You want the absolute best rates
✔️ You want to stick to a budget	⚠️You need to pay by credit card (for example, you need to hire a car)
✔️ You lose it/it’s stolen (unlike cash, your balance is protected if you report it immediately)	⚠️ You want Section 75 protection (though they do allow chargebacks)

 

Our top pick is below, though see our full review and more options in Prepaid travel cards.

Top prepaid travel card

Revolut* (standard plan)	Perfect interbank rates (marginally higher than Mastercard/Visa rates) during the week, though watch out at weekends. You can spend up to £1,000 per 30-day period with no charges on weekdays (UK time) – it charges 1% above this and at weekends. You can lock in a rate with 29 currencies by exchanging in advance, just make sure to do this on a weekday. The card usually costs £4.99, plus you pay ATM fees on more than £200/month.
	– £4.99 card delivery fee – Uses interbank exchange rate Mon to Fri (i) – First five/£200 of overseas ATM withdrawals fee-free per rolling month, 2% after (min £1) – Can exchange 29 currencies in advance – App-only	Apply*
Wise*	Perfect interbank rates, though there’s a small exchange fee. The fee depends on the currency – for example, exchanging pounds to euros has a 0.35% fee – but would beat Revolut at weekends if you’d prefer not to exchange a set amount in advance. It also has two fee-free cash withdrawals up to £200 each month, above that there’s a charge of 1.75% + 50p.
	– £7 card delivey fee – Uses interbank exchange rate plus min 0.39% fee – Two ATM withdrawals per month free up to £200/mth, 1.75% + 50p above – Can exchange 40 currencies in advance – App and online	Apply*

(i) If you spend at weekends (UK time) it adds a 1% fee to its rates, unless you’ve locked in a rate on a weekday. There’s an additional anytime 1% fee on amounts more than £1,000 in a single month, and on Thai baht.

Option 4: Foreign currency

Personally, when I need cash, I use my specialized card and usually withdraw it from an airport ATM upon arrival. However, if we only consider bureau de change services…

It’s generally wiser to get cash before your trip, as you can research and find the best rates (check out TravelMoneyMax). Once abroad, you’re at a disadvantage since you can’t compare rates as easily, and tourist spots often have poor exchange rates due to limited competition.

This isn’t to say that overseas exchange services can’t offer better rates than those in the UK. They would need to be exceptionally cheap to surpass the UK’s best rates, which is unlikely to happen by chance. However, if you have a go-to exchange service that you know offers great rates, such as one you use regularly, it might be worth waiting until you get there.

Our TravelMoneyMax tool evaluates exchange rates from approximately 16 online currency exchange services and ranks them based on the amount of money you’ll receive after accounting for all fees and charges.

However, be cautious: if you use a UK bureau and pay with a credit card, it will be treated as a cash withdrawal. This incurs both fees and interest, even if you pay off the balance in full. To avoid these extra costs, it’s advisable to use a debit card or pay in cash.

Getting cash is good if…	Getting cash is bad if…
✔️  You want to lock in a rate	⚠️ You want the absolute best rates
✔️ You want to stick to a budget	⚠️You need to pay by credit card and/or want Section 75 protection
✔️ You have a secure place to keep it	⚠️ It’s stolen

 

What should I do if I have leftover currency after a trip?

If you find yourself with leftover coins or notes after a trip, you have several options:

1. Save for Future Travels: If the currency is from a country you plan to visit again, simply store it securely at home. This way, you’ll have it ready for your next trip.
2. Offer to Friends or Contacts: If you won’t be returning to the same destination but know someone who is, consider offering your leftover currency to them. Check the ‘spot rate’ (the current exchange rate) on sites like XE.com, and agree on a rate that reflects this. This can be beneficial for both parties.
3. Sell Back to a Currency Exchange: Some currency exchange services offer buyback options if you originally purchased the currency from them. Be sure to check the Buyback tab on our TravelMoneyMax currency tool to ensure you’re getting a fair deal.

Note that this advice applies primarily to current or relatively recent currencies. If you have older or defunct currency (such as French francs), these options might not be applicable.

Should I buy holiday currency in advance?

Without a crystal ball, predicting whether the pound will strengthen or weaken in the future is impossible. Anyone claiming certainty about this is simply guessing.

If you’re worried about fluctuations in currency rates before your trip, consider purchasing half of your currency now and the other half later. This strategy can help mitigate the impact of exchange rate volatility.

Regardless of when you make your purchase, the most important factor is to secure the best rate available at that time.

Can’t I just change cash at the airport?

Opting for an airport bureau might seem convenient, but it often results in a poor deal. Airport and ferry port exchange rates are typically unfavorable since these locations capitalize on the fact that travelers have no other choice.

It’s much wiser to use TravelMoneyMax before your trip. If you’re running out of time, at least order your currency online in advance for airport pickup to secure better rates.

Won’t I get a better deal if I change cash at a local bureau de change on my trip?

Typically, exchanging your pounds for euros, dollars, lire, or dong while abroad doesn’t offer a better rate than what you can get before you leave. However, it’s worth noting that there may be a few exceptional local bureaux overseas that provide excellent rates.

The challenge is that you won’t know which ones these are until you’re on the ground, and given that rates fluctuate daily, it’s difficult to compare them with the rates you could have secured back home.

For this reason, it’s advisable to arrange your currency exchange before you travel, if possible—though some currencies, like the Lao kip, might only be available within their respective countries. A significant benefit of this approach is that you can use TravelMoneyMax to compare rates from about 16 bureaux.

Securing a favorable rate here generally surpasses the uncertainty of dealing with an unknown rate from a single local bureau once you’ve arrived.