Holiday Money

Chubb · 2 Aug 2010 at 16:35

On the 29th August im off to Central America backpacking for 3 months. What i need help with is figuring out what to do regarding taking money out/exchanging currency when im there.

At the moment i have a HSBC debit card which is gunna charge a 2.75% exchange rate adjustment and 2% atm transaction fee with a minimum of £1.75.

Ive heard that pre paid cards can be good but ive no idea which are the best deal. It all seems very confusing, especially since im using various currencies, and most of the cards are topped up in dollars, euros or pounds.

The best one ive seen is this CaxtonFx card: http://www.caxtonfxcard.com/

If anyone has any experience with these type of cards (especially outside of eurozone and USA) could give me any advice it would be much appreciated.

[TW]Fox · 2 Aug 2010 at 16:54

Nationwide FlexAccount. 1% transaction fee, but no withdrawl fee, no other fees, etc. And you get the VISA base rate.

This ends from 1st November, but it should be ok for most of your trip.

Duke · 2 Aug 2010 at 16:56

Have a gander at this - http://www.moneysavingexpert.com/travel/cheap-travel-money

AtticusFinch · 2 Aug 2010 at 16:57

Take some US dollars - you may not be able to exchange GBP easily in Central America.

Have a pre-paid card, your debit card and at least one credit card and don't forget to notify your banks where you'll be and when to minimise the risk of them stopping one or more of those cards.

It's always best to use different banks for the cards to avoid hassles with a single over-cautious bank whilst abroad.

Chubb · 2 Aug 2010 at 18:03

The nationwide card seemed like quite a good deal (till november anyway) so i took a look at the website under the foreign travel bit and found this:

"Will I be charged the fee for withdrawing cash from a cash machine?
Select the country you are visiting from the list below, if it is listed as "no fee charged" you will not be charged. Otherwise you will be charged the fee. Please remember if you use your credit card to withdraw cash you will be charged a cash advance fee."

I havent a clue what a cash advance fee is but it doesnt sound good

jmck · 2 Aug 2010 at 18:11

I'm assuming you will want to be carrying a card with a USD balance given a lot of retailers in central america accept USD. I know CaxtonFx usually give a good deal - I've personally used FairFX as well and had zero problems (very handy card) and can recommend it. They have a setup fee but there was a way around it (which I've forgotten), I'm sure I quick google will let you know what it is. You will also find that they had a very good rate when using it to buy in other currencies - I think it was the mastercard rate or very close. Certainly about as good as you are going to get.
I'd recommend going with a prepaid card - lets you top up ensuring you cant overspend and budget very easily. Also you get up to the minute (or very close) balances online for free all the time.

**edit**
FairFX had a charge for using a cash machine but I used it at the point of sale nearly all the time. Even then the fee was a straight 3USD for any amount of withdrawal.

Chubb · 2 Aug 2010 at 19:45

Ok as far as i can tell CaxtonFx i would need 2 cards (a dollars one and a "global" one). taking dollars out is free. other currencies i pay an extra 2.5% on the exchange rate.

On the FairFX all currencies there is a flat 2USD fee at atms.

So the FairFx would be cheaper on non-usd transfers from atms over $80 (2/0.025).

So as far as i can tell the best deal would be to get a CaxtonFx card for USD and a FairFx card for other currencies (taking into account a slightly better exchange rate from fairfx) though any money saved from using a caxtonfx card would be prety negligable so ill probably just get a fairfx.

Thanks for the tips guys.

[TW]Fox · 2 Aug 2010 at 19:53

Chubb said:
The nationwide card seemed like quite a good deal (till november anyway) so i took a look at the website under the foreign travel bit and found this:

"Will I be charged the fee for withdrawing cash from a cash machine?
Select the country you are visiting from the list below, if it is listed as "no fee charged" you will not be charged. Otherwise you will be charged the fee. Please remember if you use your credit card to withdraw cash you will be charged a cash advance fee."

I havent a clue what a cash advance fee is but it doesnt sound good

A cash advance fee is a charge for withdrawing cash on a credit card. If you use a Nationwide FlexAccount with a DEBIT card, this wont apply to you/