5 Essential Hacks To Pay Fewer Fees While Travelling

Keeping costs down and saving money for travel is one of the greatest challenges that prevents many of us from our dream adventures.

Then, after finally planning and booking your trip and embarking on the journey, what happens? We lose money to unnecessary currency fees.

These days, there’s no need to do that. You didn’t work hard to save up money just to hand it over to banks, right? I know I didn’t. I want to keep every penny for myself because each fee avoided is more money to spend on food, drinks, and experiences during the trip!

Here’s what you need to know to save on fees when travelling:

Here’s 5 tips to help you do that.

1. Minimise the Exchange Rate “Penalty”

Someone paying for something using a card.

Whenever you use your card abroad, your bank converts the transaction into your home currency, often at a rate slightly worse than the official one. To get the best possible exchange rate, follow these steps:

  • Use a credit card: Credit cards typically offer the best rates. They come closest to the official interbank rate, so whenever possible, pay with your card rather than cash.

  • Use an ATM: ATMs offer the second-best rates, though they’re not quite as good as credit cards. Avoid currency exchange offices, as they tend to offer the worst rates, often charging commission too.

  • Avoid standalone ATMs: Stick to major banks if you can, and avoid those machines found in hotels, convenience stores, or random locations that charge high fees and offer poor conversion rates.

2. Avoid ATM Fees

ATM fees can accumulate quickly, especially if you’re travelling for weeks or months. Consider this: if you withdraw cash from an ATM twice a week during your trip, using your regular debit card, you’ll face three types of fees:

These charges can add up fast!

To avoid them, here’s some things I’d recommend doing:

First, find a card that doesn’t charge ATM fees (or they’re low); As a UK traveller, I use Monzo, but here are some good options for other locations:

US: Charles Schwab
Australia: HSBC, ING
Canada: Scotiabank
UK: Monzo, Starling

Another option is to choose a bank in the Global ATM Alliance, which is a group of banks that allow free ATM withdrawals at eachothers locations. Here are some major banks in the alliance:

  • Bank of America (US)
  • Barclays (UK)
  • BNP Paribas and its affiliate banks (France, Italy, Ukraine, Turkey, Poland, Morocco, New Caledonia, Réunion, Guyane, Guadeloupe, Martinique, and Luxembourg)
  • Banca Nazionale del Lavoro (Italy)
  • Deutsche Bank (Germany, Belgium, India, Spain, and Portugal)
  • Scotiabank (Canada, Mexico, Chile, Peru, Guyana, and the Caribbean)

Check with your local bank for specific coverage areas. Keep in mind that additional fees, such as foreign transaction charges, may still apply, so always double-check.

3. Don’t Change Money at Airports

Currency exchange desk at an airport.

I used to make this mistake–It might be a bit more convenient, but it’s not worth it!

Airport currency exchanges offer some of the worst rates out there, as they don’t have the leverage to offer competitive rates, and they have the convenience factor. 

Avoid using them unless absolutely necessary, and you’ll get more from your money.

4. Always Choose The Local Currency

When I’m travelling, I try to use my Monzo card as much as possible, because there’s no fees and the exchange rate is good. 

However, when I use it, it gives me the option to charge my home currency, or the local currency–Always pick the local currency if your card gives you the option! 

Your bank will offer a better exchange rate (usually a lot better) than the one offered at the point of sale.

5. Don’t Exchange Currency At Home

A pile of notes in different currencies.

Although I personally try to avoid taking too much physical cash on my adventures, sometimes it’s a good idea to have at least a little bit.

If you’re taking physical cash, you’ll typically get a worse exchange rate if you convert at home to take with you. It’s a better idea to withdraw cash from an ATM upon arrival at your destination. You’ll usually get a better rate if you avoid airport ATMs and withdraw money downtown.

I’d also recommend avoiding ‘foreign currency cards,’ which allow you to pre-load money at a fixed rate. They often come with high fees and poor rates, so they aren’t worth having in my opinion!

Conclusion

When we’re on our dream adventures, we want to spend our money on more of the stuff that matters, like experiences and sightseeing, not on unnecessary bank fees. 

For every trip I go on, I follow the 5 rules above, and it helps me save lots of money. Remember to plan ahead and be smart about how you manage your finances for travel. 

A bit of preparation can save you a significant amount over the course of your travels.

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