Travelling overseas can be exhilarating, but it also necessitates some preparation. You will want to think about how you’ll receive the foreign cash that you will need while you’re away. In addition to making sure your passport is up to date. When it pertains to currency conversion, the goal is to receive the greatest exchange rates for the least amount of cash and save money as a student. This makes you wonder how to exchange currency without any major fee.
The good news is that you can exchange money in a variety of methods. The bad news is that if you wait until you are abroad to hunt for currency exchange options, you’ll be more likely to get poor conversion rates and pay higher costs.
While handy, airport currency exchange kiosks tend to offer some of the poorest conversion rates due to huge markups. Here are four more efficient ways to exchange money to help you get the most bang for your buck.
1. Use A Credit Or Debit Card That Is Suitable For Travelling | How To Exchange Currency
In addition to offering incentives for travel expenses like airline tickets and hotel reservations, many travel-focused credit cards have no foreign transaction fees.
If you already have a credit card with no foreign transaction fees, this is usually the most convenient way to spend money abroad. There is no work to be done in advance. You can use your card just like you would at home.
Additionally, some bank accounts that cater to travellers may offer debit cards with no international transaction fees.
2. Use A Currency Conversion Website To Order Cash | How To Exchange Currency
Banks aren’t the only venues where you can get cash. This transaction can also be completed online through a currency exchange website such as Travelex or OFX.
Compare your rates to those offered by your bank to determine which one offers you the best value. Travelex, for example, gave a GBP 0.74 conversion rate at the time of writing, which was better than Bank of America’s. Therefore, choose your banks very carefully.
Keep an eye out for any shipping charges as well. These costs are frequently waived if you order a particular amount of items. In-store pickup is available at some online currency exchangers.
Whatever route you choose, begin the planning process well ahead of your vacation. When you’re midway over the ocean, you don’t want the money to arrive at your home address.
3. Obtain Cash From An ATM | How To Exchange Currency
Still, wondering how to exchange money while travelling abroad? Well, another cost-effective way to obtain local currency is to use an ATM.
“Changing your money will cost you money no matter how you do it,” says Peter Koch, a financial blogger. “Taking cash from an ATM in your destination country is one of the best ways to do it.”
If you have a bank that charges little or no international transaction costs, this is an especially smart choice. For instance, Charles Schwab does not impose foreign transaction fees, whereas Ally Bank charges a low foreign transaction cost of up to 1%.
Charles Schwab is an excellent choice for regular travellers because it has locations all over the world and reimburses ATM fees.
4. Use A Currency Exchange Kiosk At The Airport (But Only If You Need To) | How To Exchange Currency
When you arrive at the airport, you’ll most certainly notice one or more exchange kiosks with a selection of foreign currency options. Regardless of what their signs claim, these exchanges often feature the worst rates and fees.
Nick Brennan, the international traveller and proprietor of My UK SIM Card, advises, “Definitely avoid airport currency exchange because you’ll likely get an even lower conversion rate.” “They know they have a captive audience who may have waited until the last minute and are in a hurry (but also thrilled about their holiday), so they can get away with providing an even cheaper rate,”.
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You won’t be that scared traveller who pays excessive fees because you didn’t get currency in advance if you prepare ahead. Before you depart, you may also arm yourself with knowledge by researching current exchange rates. That way, you’ll be able to tell what’s a reasonable fee and what isn’t.
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I hope the above solutions answer your “How can I exchange currency?” question.
When You Can Get A Credit Card With No International Transaction Fees, Why Would You Want To?
Unless you bank with a traveller-friendly bank, you’re likely to lose money when converting U.S. dollars to some other currency. Fortunately, there are many places to visit where you will spend very little money.
If you use a credit card that doesn’t charge a foreign transaction fee, such as the Chase Sapphire Preferred or Capital One Venture, you’ll save the most money. Some cards offer additional benefits for travellers, such as rental vehicle insurance or trip cancellation insurance. Terms and conditions may apply.
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