Are you are set for life overseas or planning to travel for a relatively long time?
In the course of your preparation, you must get to know how you will get your cash exchanged without experiencing any niche.
Even if credit cards are accepted in most countries, there still comes a moment when you may need to exchange your cash, and based on your destination, you may need more than just cash.
When exchanging money, there are so many options but you can stick to these simple rules to save your money every time you exchange currency and get the best rates:
1. DO NOT EXCHANGE CASH BEFORE YOU DEPART
There is usually a lot of debate on whether you should exchange money in your country before leaving or not.
A few travellers may opt to have some little cash with them when they land in a foreign country.
However, if you want to have the best rates possible, wait until you land or arrive then exchange your currency.
This is because overseas exchange rates are higher compared to getting the right currency in-country.
According to a travel expert, travellers and tourists should wait until they arrive to withdraw money.
2. DO NOT EXCHANGE CASH AT THE AIRPORT
Airport currency exchange deals are not the better option. currency kiosks that are located near popular tourist destinations are not good deals too. This is because they come at a higher fee and wider exchange margin.
If you exchange your dollars for local currency after landing and then changed the remaining local currency into dollars, you will end up losing money two times.
If you want to be safe, exchange your currency at a financial institution, not at an airport.
A bank or a credit union charge relatively little fee.
3. USE AN ATM TO OBTAIN CASH
Withdraw cash directly from the ATM instead of exchanging notes.
You should, however, note that not all banks have foreign transaction or ATM fees. This may pose a challenge when you want to withdraw cash in the local currency.
The charges for withdrawing cash in the local currency can also vary within the range of $1 to $5 and a debit transaction fee of up to 3%.
You should, therefore, conduct some thorough research to obtain a card with the best rates and reduce the number of ATM withdrawals.
You also need to notify your bank before travelling abroad so they do not lock your card for what may appear as fraud.
4. GO FOR A CREDIT CARD THAT DOES NOT ATTRACT FOREIGN TRANSACTION FEES
Be wise when swiping your credit cards since credit cards attract more fee on top of the interbank rate.
According to a travel expert from Fodors, use your credit card for mega purchases only.
You should also avoid taking an advance on your credit card unless it is extremely necessary.
Pay in the currency of your host country to avoid losing money in the name of exchange rates and a hidden 3 to 3.5% privilege fee.
5. REMEMBER, EXCHANGE RATES APPLY TO MONEY TRANSFERS
When sending money back home, ensure you get the best deal possible.
Exchange rates differ depending on the transfer method. For instance, OFX has an exchange rate of less than 1% whereas MoneyGram charges up to 4%.
#SAVE YOUR MONEY WHILE TRAVELLING ABROAD.