Jump to content

Best way to draw cash abroad?


StuartO

Recommended Posts

I may have skimmed the surface of researching this but a Starling Bank Debit Card seems to offer unlimited zero-charge ATM withdrawals abroad although as alway the ATM owner may charge something.

 

Starling Bank is a new smartphone-only UK bank and it takes only a few minutes on your phone to open an account. Because it's a UK bank your money up to £85,000 is secured under legislation - but of course I won't be putting that much in there. You can top up (or transfer money out) quickly using an app on your smartphone.

 

Last year I used a Monzo Card for cash withdrawals but they now charge fees after the first £200 per month.

 

Nowadays I take relatively little cash with me, buy in the shops using my Post Office CC (no fees) whenever possible and carry a Starling Debit card as a fallback, to get cash if necessary.

 

Anyone got a better idea?

Link to comment
Share on other sites

Based on advice from various forums for the first time last year I took cash out abroad using my Nationwide credit card and intended paying the full amount on same day. Onto internet only to discover that as I didn't have a Nationwide bank account I couldn't do it online. No problem phone them but I hadn't used telephone banking for years so had no answers to the security questions but with patience I managed to pay. I was charged £3 cash charge but I got the bank exchange rate at time of processing . My own opinion is no matter how you get your euros, either abroad or at home before you go, there will be a charge somewhere. You just have to decide on your preferred method and go with it

John

 

Link to comment
Share on other sites

i use a nationwide credit card which gives me free use worldwide, and a nattionwide debit card for free worldwide cash withdrawals. there is a charge for this account, but it pays interest on the balance (which lessens the fee) and also free health insurance, free phone insurance and free european breakdown/recovery.
Link to comment
Share on other sites

I have used Starling in the Uk, rep of Ireland, France and Spain without any issues. It seems to me to be the perfect debit card for use abroad. No charges on cash withdrawals or purchases. A perfect exchange rate on the day of use and interest paid on balances.

 

I particularly like the ability to turn on or off the Atm, card present or internet purchases or indeed the whole card. I tend to load a few hundred pounds on the card at a time and use it as a preloaded card further reducing possible losses if stolen.

 

Needless to say I also have a post office credit card with no commission charges, my debit card (last resort) and an old Fx card which predates my Starling account. I also carry a bundle of cash.

 

Davy

Link to comment
Share on other sites

For me - Probably not the most effective method but I know I will get hit somewhere with charges. - I rate practicality, comfort and safety (with access to cash you are pretty much protected from many possible problems) above worrying about the last penny. Also I spread the risk so if my card got stolen or blocked, my wallet nicked, - or if my cash got stolen, none would be ideal and I wouldn't be happy but I'm not "stuffed"

 

I take a MasterCard for all the larger expenses, generally use it for Diesel and tolls, - gives me a very accurate breakdown of what I'm spending.

 

I take cash, not a huge amount but sufficient for day to day needs, plus a bit spare.

 

I have a Halifax Debit card which seems to work at most European Cash points and other places, I take out cash, better to take a larger amount once, than a smaller amount several times.

 

I have a second Credit card from another bank for emergencies.

 

Always pay my cards off monthly even while abroad, I avoid taking cash on a credit card which is really expensive, my Banking apps on my phone work as well abroad as here and I can keep an eye on things.

 

I have an Ipad with a set of accounts, - I tend to update this every couple of days with everything I paid out for, - categorise under holiday, - then tolls, fuel, food, bar bills etc - Really doesn't take long.

 

I can keep a close eye on the spend as we go, - if it's looking a bit high, we may eat in the van for a couple of nights etc.

 

 

Link to comment
Share on other sites

I should have added that with the Starling card after a transaction I get an almost instantaneous message on my iPad or phone of how much I have spent (in Sterling) and if I open the app it automatically has sorted the transactions into rough categories such as food, transport etc..

 

Davy

Link to comment
Share on other sites

I use a FairFX account which offers a good/average rate. I recently opened a Transferwise account in Euros. With this you actually have a Euro account (mines a German one) and when you transfer money to it you get the market exchange rate, not a 'tourist rate' for example today at 14:00 I'd get Euro 1.1285 as opposed to Euro 1.1100 with FairFX. On that basis, changing £1000 i'd get £18 more than with FairFX. Transferwise has a limit some transactions and a 0.35% charge for changing money. I think its a good idea to have a range of options.
Link to comment
Share on other sites

Similar to Rael, I use a Caxton FX card. It is a Mastercard designated in whatever currency you choose and you can withdraw funds from any cash machine without charges. Ours is in Euros, but you can also organise it in several currencies if you wish - for example if you wanted to travel through Switzerland or travel around Scandinavia.

 

When we go abroad I generally start off with about €3-400 cash, and have about €2000 on the Caxton card. I try to pay cash for most things and just replenish it when necessary, although the Caxton is a proper Mastercard and you can use it for debit transactions if you choose.

 

There is a Caxon app which can be on your tablet or phone, and you can load up the card with more money whenever you want from your UK bank account. The app shows all of your transactions and gives you an instant balance readout. I also find that Caxton's 'load' rates are very good. The only advice that Caxton offer is never to use the card (as a debit card) to pay for tolls, or for fuel from an unmanned petrol station. I did the latter once and learned my lesson!

 

I've been using this for about 3 years now, and its a great success - I recommend.

 

Regards,

Link to comment
Share on other sites

Richard J - 2019-01-16 1:32 PM

 

I forgot to mention, just to make sure you avoid paying any interest if you’re withdrawing cash abroad you can pre-load your account with as much as you like.

Richard

 

AIUI (and my experience seems to bear it out) you can avoid most/all of any interest charges for such Halifax Clarity withdrawals by rapidly depositing a balancing amount (electronically) after the withdrawal.

 

Any deposits into the account are applied in a defined order against the items on the balance; criteria include the interest rate and the transaction type, and as a result of this cash withdrawals are at the top of the tree, and any deposit is credited against that first. You may end up paying a few pence if you are a day or so out with your balancing payment.

 

Take care to allow time for the cash transaction to reach your Clarity account, though, otherwise the payment will be applied to other outstanding amounts.

Link to comment
Share on other sites

Solwaybuggier - 2019-01-16 2:23 PM

 

Having found our Saga card is ending at the end of March, we’ve just applied for Barclaycard Platinum Cashback Plus Card’s, as recommended by MoneySaving Expert. No charge for withdrawals or purchases abroad until 2023.

Yes this is the one I've got, plus you get a small cashback on any purchases, I've got it set to be paid on a direct debit to ensure there are no charges if we are away.

Link to comment
Share on other sites

Be aware that there are many cards that offer purchases and cash withdrawals abroad with “no fee” but there are only a few that give you the current true exchange rate and no fee. This is where many sneakily make their money. BEWARE it can make quite a difference, especially on a big purchase or withdrawal.

Richard

Link to comment
Share on other sites

Richard J - 2019-01-16 8:37 PM

 

Be aware that there are many cards that offer purchases and cash withdrawals abroad with “no fee” but there are only a few that give you the current true exchange rate and no fee. This is where many sneakily make their money. BEWARE it can make quite a difference, especially on a big purchase or withdrawal.

Richard

On the Barclaycard you pay the daily exchange rate set by Visa.

Link to comment
Share on other sites

There’s an interesting page on Money Saving Expert which sets out the typical differences in exchange rates between Visa, MasterCard and Amex cards. Generally MasterCard seems to come out best.

 

But the fact that there is no transaction charge for cash point withdrawals on the Barclaycard makes a significant difference for us.

Link to comment
Share on other sites

We all have to look at what’s best for our own circumstances, I’ve just been trying to point out the hidden cost involved with the exchange rate used by most bank card suppliers. Martin Lewis(Money Saving Expert) has been advocating the Halifax Clarity card for many years for good reason. There are now a few others available but not that many. Don’t be fooled by the bold print !
Link to comment
Share on other sites

Folk shouldn't be too quick to pat themselves on the back regarding cash withdrawals and purchases abroad. there is no such thing as free money.

From my experience the Post Office don't make charges but then again they give a lousy exchange rate.

We use a Halifax Clarity Credit Card to pay for purchases abroad (always elect to pay in the local currency as your bank will give you a better exchange rate than the local bank). Cash is drawn on a Nationwide Flexaccount debit card. These folk have always been good, giving us the business exchange rate with no charges HOWEVER here in Spain we're now having to pay five euros per cash withdrawal to the ATM provider. As I say, there's no such thing as free money. Somewhere along the way you're going to pay for the service that is provided, either in a fee or in a poor exchange rate.

Link to comment
Share on other sites

Sorry, correction to the above it's a FlexPlus debit account rather than the usual FlexPlus account. We pay a monthly fee for this account from which we get back more in benefits than we pay, including breakdown cover with no restriction on vehicle size or weight.
Link to comment
Share on other sites

it may be well worth trying a variety of ATM providers, as some have been charging for many years. cant remember which ones did, but caixa or servi-red come to mind. i havent been to spain for a year so cant say whether this practice has spread. i believe they always tell you that they are going to charge you before you complete the transaction. certainly i have never been charged for using my flexplus debit card, nor charged for my NW credit card when used to buy goods in shops and fuel stations (every time i use it i earn charge free spending).
Link to comment
Share on other sites

I've just got a Monzo debit card. It's free and you preload by Faster payment. Free cash withdrawals (monthly limit), market rates and no mark up.

 

It was recommended by my son who travels abroad regularly and I got a £10 opening bonus.

 

www.monzo.com

 

 

 

 

 

 

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...