As a new year begins and the January blues sets in, many will return to their desks attempting to tackle their backlog of emails but at the same time distracted by which destination they should escape to next.
With the rise of free for all foreign exchange cards, you can't help but think that travel money is dead - however, take out all the noise, and you will find that travel money is very much alive and kicking and an integral part of going on holiday.
According to a recent survey by Mintel, Brits still love to carry cash with them when they go on holiday. 86% will purchase travel money before they go away, with the majority still opting to take cash.
For those that choose to take an FX card, many of those holidaymakers end up incurring multiple withdrawal fees due to numerous times they take money out of the ATM at their end destination.
Let us understand the advantages of carrying cash while travelling abroad.
Many people feel anxious about carrying cash when they travel to foreign countries due to its potential safety risks.
While you can take measures to prevent your cash from being stolen, using a card can significantly impact your finances. Such as:
1) Additional costs associated with overseas card transactions
2) Charges on ATM debit transaction
Furthermore, even now, many shops do not accept credit cards or online payments.And you might have to spend most of your time looking around for ATMs.
On the other hand, there are numerous benefits of carrying foreign currency in cash. These are:
Primarily, cash is a great way to budget! When deciding how much cash to take with you abroad, you are, in a sense, in control of your spending and making it easier to monitor as it is the cash available in your hand.
Furthermore, because you have created a budget of how much you are spending, it will stop you from using the cash mindlessly.
And if you feel that you are not great at fixing a budget, the government's limiting the amount you can carry in cash also helps you from spending too much.
As per the government's regulations, you must declare that you are carrying only £10,000 to the UK customs when travelling abroad. You need to declare whether you are carrying notes and coins, bearer bonds, traveller cheques or cheques that are not made to any organisation or an individual.
Secondly, there is peace of mind. It's great to know that there will be no hassle when you land at your destination!
Most credit or debit cards offer rewards in terms of cashbacks or points. However, when used in a foreign country, they bring more trouble than you can imagine.
Banks and ATM providers will levy hefty exchange rates on store purchases or ATM withdrawals. They might alsocharge hidden fees that may not be communicated to you. These include currency conversion fees, processing fees, administrative fees etc.So, you would end up paying more on your trip than you should have.
Not all vendors will accept card payments. There may not always be an ATM for you to withdraw the cash from, and who needs that stress? You're on holiday!
Thirdly, taking cash is more considerate to the vendors and fuels the local economy.
Of course, convenience is important for the traveller but remember, if you walk into a local shop or restaurant and decide to pay by card, the local business will be charged a processing fee for every transaction completed on the card.
This eats into their profit margins. When they accept cash in their tills, the profit is solely for the business, and you can also be generous with your tips!
Lastly, there are no hidden costs with cash. When you purchase travel money, you must compare exchange rates and your final cost.
If you look at cards, you may not realise that there are added fees. For example, your foreign exchange rate may be at the market rate, but every time you withdraw funds, there may be a 2% fee.
There may also be further transaction fees for the ease of using your card to pay for things, so why get stung after you return from your holidays with a statement loaded in fees?
Furthermore, with debit or credit cards, it's difficult to keep track of the exchange rates on a regular basis.
Research suggests that for now, cash is still king, and if you care about also helping the local economy and businesses in the destinations you are visiting, why would you bother to take anything else!
Now that you understand the importance of carrying cash when visiting a foreign country, you must know the ideal place to get it from. The best option to buy travel money would be an online currency exchange platform like The Currency Club. This makes the currency conversion process, easy, fast and cheap. Order your travel money online and get it delivered the next day to your doorstep.
Unlike traditional institutions, we offer reasonable exchange rates and levy zero hidden charges maintaining complete transparency. So, order your travel money online today!
We have made every effort to ensure that the information published here is correct and accurate, however you should check and confirm the latest exchange rates with The Currency Club directly prior to making a decision. The information published is general and does not consider your personal objectives, financial situation or particular needs. Full disclaimer available
The Currency Club's officers, employees, representatives or agents shall not be held liable for any damages or injury resulting from your access to, or inability to access this internet site, or from your reliance on any information provided on this site or any accompanying literature or documentation.
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Whilst we take reasonable care to keep the information on the website accurate and up to date, there may be occasions when this is not possible and figures, fees etc are all subject to change. All facts quoted about 'The Currency Club' on the website are in relation to group statistics and not individual subsidiaries, unless otherwise stated.
Blogs including examples or case studies are provided for your information only and are not intended to predict future moves in exchange rates.
If you are in any doubt as to the suitability of any foreign exchange product that you are intending to purchase from The Currency Club, we recommend that you seek independent financial advice first.
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A page for us to share with you our thoughts on everything to do with with foreign exchange and much more. From new product launches and widgets to political announcements, market insights and even where to head on your next holiday look no further, you'll find it all here.
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