BEST UK Travel Cards in 2023: Credit & Debit Cards WITH NO HIDDEN FEES!
TLDRThis video guides UK travelers on choosing the best travel cards to avoid hefty foreign exchange fees. Emphasizing no fixed fees on foreign transactions and fair exchange rates, it highlights cards that use Visa or MasterCard's rates, like Chase UK and Starling, comparing their benefits like cashback and ATM withdrawal limits. The video warns against dynamic currency conversion, advising to pay in local currency. It also suggests Halifax and Barclaycard rewards credit cards for their favorable terms and cashback offers. For those reluctant to open a new bank account, it introduces the currency travel card, linked to one's main account, as an alternative. Additionally, the video offers practical tips on withdrawing cash abroad and avoiding poor exchange rates at airports, while endorsing preloading funds on cards like Wise and Revolut to lock in rates and minimize currency fluctuation risks.
Takeaways
- 💡 When traveling, avoid high foreign exchange fees by choosing the right bank account or card.
- 💳 Look for travel cards with no fixed fees on foreign transactions or ATM withdrawals and a fair exchange rate.
- 🌐 Visa and MasterCard rates are typically the most favorable for exchange rates.
- 🔍 Check the terms and conditions for transparency on exchange rates and fees.
- 💰 Consider cards like Chase UK and Starling for their favorable international transaction terms.
- 💹 Be aware of the monthly and daily limits on ATM withdrawals for different cards.
- 🔄 Understand the benefits of cash back and rewards offered by certain credit cards.
- 🚫 Avoid dynamic currency conversion to prevent additional fees from merchants or ATM providers.
- 💳 For those not wanting to switch banks, consider a currency card linked to your existing account.
- 💱 When withdrawing cash abroad, use ATMs of local banks to minimize fees.
- 🛍️ Be cautious with buying foreign cash before traveling to avoid high fees from Bureau de Change.
Q & A
What is the main issue with spending money in a foreign currency without the right bank account or card?
-The main issue is that you might end up paying a lot of money in foreign exchange fees due to unfavorable rates and hidden charges.
What are the key features of a good travel card?
-A good travel card should have no fixed fees on foreign transactions or ATM withdrawals and should offer a fair exchange rate, typically using Visa or MasterCard rates that are close to the real exchange rate.
How can some banks profit from their customers' transactions using travel cards?
-Some banks may use their own exchange rates, which could be less favorable than the market rate, allowing them to profit from the difference between the rate they charge and the actual market rate.
What are the differences between Chase UK and Starling Bank travel cards?
-Chase UK allows for 1500 pounds per month in foreign ATM withdrawals without fixed fees, while Starling allows 300 pounds per day. Additionally, Chase UK offers 1% cash back on foreign transactions capped at 15 pounds per month.
How can one avoid being charged fees for currency exchange when spending abroad?
-When asked whether to pay in the local currency or your home currency, choose to pay in the local currency. This ensures that your bank or card provider will handle the currency exchange using the agreed rates.
What are the benefits of using Halifax and Barclays credit cards for travel?
-The Halifax credit card offers a 20-pound reward for making a purchase within 90 days of getting the card. The Barclays rewards card gives 0.25% cash back on everyday spending and a five-month free subscription to an Apple service.
What is Currency UK and how does it work?
-Currency UK is a travel card linked to your main bank account, acting as an intermediary between your bank and merchants. It uses the real mid-market rate or MasterCard's exchange rates for foreign transactions, and charges a 0.5% transaction fee for each international transaction.
How can one obtain foreign cash with minimal fees?
-The best way to get foreign cash is by withdrawing money from an ATM at your destination, preferably from a bank, as they often do not charge fees for withdrawals.
What should be avoided when exchanging currencies?
-Avoid exchanging currencies at airports as they often have poor exchange rates and charge high fees. Instead, use prepaid cards or services like Wise and Revolut that offer better rates.
Why is it important to exchange currencies ahead of time?
-Exchanging currencies ahead of time allows you to lock in a specific rate, protecting you from currency fluctuations that can result in additional costs.
What should be considered when choosing a travel card?
-When choosing a travel card, consider factors such as the fees for ATM withdrawals, cash back offers, ease of account opening, and whether the card suits your travel habits and spending patterns.
Outlines
💡 Managing Foreign Exchange Fees on Holiday
This paragraph discusses the financial aspects of going on holiday, particularly focusing on the costs associated with foreign currency transactions. It emphasizes the importance of having the right bank account or card to avoid high foreign exchange fees. The speaker introduces some travel cards available in the UK that can help minimize these costs, and outlines important travel money tips to avoid being taken advantage of by banks. The ideal travel card should have no fixed fees on foreign transactions or ATM withdrawals and should offer a fair exchange rate. The paragraph also compares the costs of using different cards and highlights the benefits of certain banks and their offerings, such as Chase UK and Starling, which use MasterCard's FX rates and do not charge fixed fees on international transactions.
💳 Choosing the Right Travel Card and Avoiding Dynamic Currency Conversion
The second paragraph continues the discussion on travel cards, emphasizing the ease of opening an account with providers like Chase UK and Starling, and how they can be used without replacing one's main bank account. It also warns about dynamic currency conversion, a practice that can lead to additional fees when spending abroad. The paragraph advises choosing the local currency option when prompted for payment to ensure the bank or card provider handles the currency exchange. It mentions other travel-friendly credit cards like Halifax and Barclays, which offer benefits like cashback and no fixed fees on foreign transactions. The speaker also introduces the Currency Card as an alternative for those who do not wish to open a new bank account or card, explaining how it works and its benefits, such as fee-free ATM withdrawals and competitive exchange rates.
Mindmap
Keywords
💡foreign currency
💡travel cards
💡foreign exchange fees
💡exchange rate
💡ATM withdrawals
💡dynamic currency conversion
💡cash back
💡credit card
💡currency card
💡prepaid cards
💡contactless payments
Highlights
The importance of having the right bank account or card when traveling to avoid high foreign exchange fees.
The necessity of selecting travel cards with no fixed fees on foreign transactions or ATM withdrawals.
The advantage of choosing travel cards that use Visa or MasterCard exchange rates, which are closer to the real exchange rate.
The potential for banks to profit from their own exchange rates, but the requirement for them to disclose this information.
The comparison between using a travel card and a regular card, highlighting the savings of using a travel card.
Chase UK and Starling as examples of banks offering travel cards with no fixed fees on international transactions and using Mastercard's FX rates.
The differences between Chase UK and Starling cards, such as monthly ATM withdrawal limits and cashback offers.
The ease of opening an account with these providers and the option to use them without making them the main bank account.
The concept of dynamic currency conversion and how it can lead to additional fees when spending or withdrawing money abroad.
The recommendation to always choose the local currency when transacting abroad to ensure the bank handles the currency exchange.
The mention of Halifax and Barclays credit cards as good options for travel with no fixed fees on foreign transactions and the use of MasterCard and Visa exchange rates.
The benefits of the Halifax credit card, including a £20 reward for purchases within the first 90 days.
The cashback benefits of the Barclays rewards credit card and its free subscription to an Apple service.
The option of using a Currency card for those who do not wish to open a new bank account or get a new debit card.
The availability of the Currency card for account holders of specific banks, including HSBC, Barclays, and TSB.
The fee structure of the free plan for the Currency card, including fee-free ATM withdrawals and transaction fees for international transactions.
The advice on withdrawing money from an ATM at the destination for the best rates and avoiding Bureau de Change for better exchange rates.
The suggestion to use prepaid cards for currency exchange ahead of time to lock in a specific rate and avoid currency fluctuations.
The comparison between Wise and Revolut for exchanging currencies, highlighting their fees and the best time to exchange for fee-free options.
The overall recommendation to obtain a travel card before traveling and the convenience of virtual cards for contactless payments, despite their limitations.