Compare Travel Money: Best Ways to Spend Abroad in 2025
Whether you’re off to Europe for a weekend break or planning a long-haul adventure, understanding how to compare travel money can save you hundreds of pounds. With fluctuating exchange rates, hidden fees, and outdated advice still circulating, this guide helps UK travellers confidently choose the best way to spend abroad in 2025.
What Is “Travel Money” and Why It Matters
Travel money is simply the currency you’ll use while abroad—euros, dollars, baht, etc.—and how you access or exchange it. That might be physical cash, a debit or credit card, or a pre-paid card.
But not all options are equal. You could be charged:
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High exchange margins
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Non-sterling transaction fees (typically 2–3%)
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ATM withdrawal fees abroad
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Currency delivery or collection charges
Choosing the right method means more of your money goes towards your trip—and not into the pockets of banks or currency providers.
Best Travel Money Options for UK Travellers in 2025
Here’s a breakdown of the main options available today and how they compare.
| Option | Pros | Cons |
|---|---|---|
| Travel debit cards (e.g. Chase, Starling) | Fee-free, real exchange rates | May need to pre-open an account |
| Credit cards with no FX fees | Protection under Section 75 | Interest if not paid in full |
| Prepaid travel cards | Lock rates in advance, good budgeting | Fees for inactivity or withdrawal |
| Cash from high street | Convenient for small purchases | Poor rates unless booked online |
| Airport currency kiosks | Last-minute access | Worst exchange rates + high fees |
Top UK Banks and Providers Offering Fee-Free Travel Cards
Many digital-first banks now offer cards specifically suited for spending abroad. Here are the best performers in 2025:
1. Chase UK (by JPMorgan)
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Fees: £0 annual fee, no foreign exchange fees
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ATM withdrawals abroad: Free up to £1,500/month
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Extras: 1% cashback on all purchases (first 12 months)
Great for: Daily spending abroad, especially short trips in Europe.
2. Starling Bank
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Fees: No FX fees, no ATM withdrawal limits
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Mobile app: Excellent categorisation and freeze options
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UK-based: Covered by FSCS
Great for: Frequent travellers and business trips.
3. Halifax Clarity Credit Card
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Fees: No non-sterling transaction fees
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ATM: Interest charged from day one on withdrawals
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Credit: Apply online, needs decent credit history
Great for: Large one-off expenses abroad like hotel bills or car hire.
Should You Still Take Some Cash?
Yes—especially for markets, tips, taxis, or small businesses abroad. However, taking too much means carrying risk and often losing out on bad exchange rates.
Top tip: Order travel cash online from major supermarkets (like Tesco or Sainsbury’s) for better rates and collect in-store for free.
Best Places to Buy Foreign Currency in the UK (2025)
| Provider | Rate Competitiveness | Delivery Options | Fees |
|---|---|---|---|
| TravelMoneyClub | Excellent | Home or collection | £0–£4 delivery |
| Asda Travel Money | Competitive | Store pickup | £0 over £500 |
| Tesco Travel | Decent | Home or store | £3.95 delivery |
| Revolut | Mid-market on weekdays | Digital only | Weekend markup |
Avoid exchanging currency at the airport unless you have no other choice—it’s where you’ll get the worst rates.
Watch Out for These Hidden Travel Money Traps
1. Dynamic Currency Conversion (DCC)
At shops or ATMs abroad, you’ll often be asked: “Would you like to pay in GBP or local currency?”
Always choose local currency—choosing GBP lets the foreign bank set the rate, often adding 5–10% markup.
2. Weekend Mark-Ups on Some App-Based Cards
Apps like Revolut or Monzo may charge a small weekend surcharge (0.5–2%) for currency conversions outside trading hours. Always check their policies or exchange before Friday evening.
3. ATM Charges Abroad
Even if your bank doesn’t charge, the foreign ATM might. Spain, Thailand, and the US are known for ATM usage fees of up to £5 per withdrawal. Try to take out larger amounts less often.
Do UK Banks Offer Travel-Specific Accounts?
A few do—though not all are well advertised.
Barclays Travel Wallet
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Add euros or US dollars to your regular account
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No FX fees when spending from the wallet
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Instantly switch back to GBP
Virgin Money Travel Card
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Preload up to 12 currencies
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App lets you track exchange rates and balances
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Fees apply for inactivity and low balance
These options are useful for long stays or if you travel frequently to specific destinations.
Using Travel Money for Online Bookings Abroad
Booking foreign hotels or attractions in advance? Use a fee-free card in the local currency of the provider (e.g. euros for French bookings). You’ll get better rates and avoid double conversion fees.
Example: Booking a hotel in Italy in GBP through a UK travel site might cost more than booking the same hotel directly in EUR using a no-FX-fee card like Chase or Starling.
Tips for Getting the Best Value from Your Travel Money
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Check exchange rates daily via XE.com or Wise
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Sign up for alerts on app-based card rate changes
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Split funds between physical cash and digital options
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Travel in pairs? One uses debit, the other credit—for security
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Need large cash? Ask your bank about advance notice orders
Final Verdict: What’s the Best Travel Money Option in 2025?
For most UK travellers, a fee-free debit card like Chase or Starling, combined with pre-ordered cash, is the best combo. Avoid airport exchanges, always pay in local currency, and use cashback cards where you can.