Here Are Some Of The Best Ways To Spend Money Abroad (& What To Avoid!)
Before jetting off on your holiday, we’re sharing our tips on the best (& cheapest) ways to spend your money abroad.
Headed off abroad? We’re not jealous, not one bit. But before you go, you might want to think about how you’re going to spend money abroad. Whether you’re headed off on a quick city break, or preparing for the gap year of your dreams, money always matters. The best way to exchange currency has changed a lot in the last 10 or so years, and mostly gone are the days of travellers cheques!
So we’re rounding up some of the different types of ways to spend money, including whether there are fees or conditions with each type.
In this article:
- What are the different ways to spend money abroad?
- What are the best debit cards to use abroad?
- What are the best credit cards to use abroad?
- Taking cash abroad
- Is it cheaper to use cash or card abroad?
What are the different ways to spend money abroad?
We get it. When you’re planning your holiday, thinking about how you’re taking your money abroad isn’t the most exciting thing on your list. But it’s important to do so you and your money are protected, plus avoid some pesky charges too.
Debit cards
You can use your debit card abroad, and a lot of debit cards have fee-free spending if you’re in a different country, so it’s always worth checking.
If you use your debit card abroad, make sure to always pay in the local currency, rather than paying in pounds, as immediate currency exchange rates can be super expensive. So for example, if you’re in France, you’d select to pay in euros, not pounds.
Some debit cards will charge for spending and withdrawing cash, or one or the other. You could expect to pay around a 3% charge for each transaction. So if you’re a keen traveller, then definitely check out fee-free debit cards for when you head abroad.
Another tip is to let your bank know when you’re going on holiday. This will help avoid your card being declined or blocked when you’re trying to pay.
Credit cards
A lot of credit cards these days are a good choice for travelling abroad. Similarly to debit cards, charges might apply if you withdraw or make a purchase using your credit card. But a lot of credit cards now offer fee-free spending when you go abroad.
The added bonus of credit cards is that you’re protected for purchases up to £30,000 in value, so if something goes wrong, you’re covered.
Cash
If you prefer the idea of taking cash abroad, then that’s still an option. It’s often far cheaper now to use cards abroad as you’ll pay less of a fee or exchange rate, but sometimes you might prefer to go old school.
It’s definitely worth shopping around to try and find the best exchange rate. And whatever you do, don’t exchange your cash at the airport – the last minute approach means you’ll often pay way over the odds for your currency.
Prepaid travel cards
Prepaid travel cards might sound a bit old fashioned, but if you like the idea of having a preloaded sum of money on your card (maybe to avoid a few impulse purchases!) then it could work for you.
You can often find prepaid travel cards have more competitive exchange rates than debit or credit cards, and cash – but obviously you’re restricted to a set amount of money to spend. It’s always worth having a bit of cash too for smaller spending, like tipping.
What are the best debit cards to use abroad?
If you’re thinking debit cards are the way to go, then here are some of the best debit cards we found, with fee-free spending abroad (apart from the exchange rate) and fee-free withdrawals too, plus some added perks.
It’s worth remembering that while banks may not charge you for withdrawals abroad, individual ATM machines might charge their own rate for withdrawals, so keep this in mind!
| Chase | First Direct | Starling | |
|---|---|---|---|
| Fees to spend abroad? (Apart from exchange rate) | None | None | None |
| Fee-free withdrawal abroad? | Up to £1,500 a month | Up to £500 a day | Up to £300 a day, and max. 6 withdrawals |
| Perks? | 1% cashback on spending (max. £15 a month) | £250 0% overdraft | 3.25% interest rate on current account |
What are the best credit cards to use abroad?
The good thing about taking credit cards abroad is that you’re protected on your spending, which debit cards won’t offer. If you’re happy to pay it off in full each month, to keep yourself out of debt, then a credit card could be the way to go.
Here are some of the best credit cards we’ve found to use abroad:
| Halifax Clarity Credit Card | Barclaycard Reward Visa | BIP Credit Card | |
|---|---|---|---|
| Fees to spend abroad? (Apart from exchange rate) | None | None – but must pay back card in full each month | None |
| Fee-free withdrawal abroad? | No fees for withdrawal but interest charged from the date of transaction | Up to £500 a day | N/A – no withdrawals as no physical card |
| Perks? | N/A | 0.25% cashback on spending | Designed for bad credit or building credit, so a good first credit card |
Taking cash abroad
If you’re someone that likes to take cash abroad, then there’s a few ways to keep yourself safer, as it’s a lot more to think about than just a piece of plastic.
- Don’t keep all your money in the same place – this just means that if you did have any cash stolen, then you’ve got a backup stash. This is really key if you’re not taking a debit or credit card abroad too, as you don’t want to be stuck without any money at all.
- Only take the amount of cash you need per day. In a lot of cities, pickpocketing is pretty rife, so avoid the risk of losing a big sum of money by working out how much spending you’ll be doing during your day, and leave the rest at home.
- Check if there’s a safe in your hotel or apartment. Not every place will have one, but if you do have a lot of cash then it can be a good idea to keep it extra safe… no pun intended.
How much money can I take abroad?
We know it’s unlikely, but if you’re taking over £10,000 in cash abroad with you, then you’ll need to declare it with UK customs before you leave or enter the country. In other countries it really depends, but they’ll each have their own rules, whether it’s filling in a declaration form or declaring at the airport.
Definitely check this before you head out, so that there’s no risk of you being fined or even having your money seized! If you’re going interrailing or visiting more than one country, make sure you’ve checked for every country you visit.
Is it cheaper to use cash or card abroad?
Generally it’s now much cheaper to use a card abroad, as you’ll get better exchange rates using your debit or credit card then by exchanging money before you go.
But it’s always a good idea to carry a bit of both with you. Cash is great for small spending if you’re tipping, for example. It also means you’ll have a backup plan if you lose your card, or you lose any cash on your travels.
If you’ve already got a student bank account, then check out if it offers any good perks for spending abroad, as that’ll save you the admin of a new account too.
Now you’ve got your spending money sorted, stock up for your holiday with amazing travel discounts at Student Beans. For more advice on how to organise your next adventure, explore our hub of essential student travel tips.
