Even in this modern world of charge-it, you still need cash to get around, especially if you are travelling abroad. Yes, you cannot lack a decent place to make your exchange. However, there are currency rates and service fees to consider, as they can put a dent on your account.
The key to saving some money when making your foreign exchange is research. Most travellers never research on foreign currency rates or the best ways and places to make an exchange, but they would be quick to research on affordable days to travel and even hotel bookings.
Although, you are bound to lose some money when doing a money exchange, you can minimize this lose by researching on how to save on it. For instance, if you are travelling to Ottawa, Canada make sure you are well acquainted with the process of money exchange Ottawa, for a chance to get better rates with low fees.
Nonetheless, here are 8 ways you can save when exchanging foreign currency.
Avoid exchanging money at airports
You should be familiar with the current exchange rates if you know you will be travelling soon. Keep track of them as they change constantly. By tracking the changes, you can know the best time and day to make your exchange.
It is always advisable to make an exchange in advance, rather than face the high fees and bad rates offered at the airports. You are actually better off with ATMs and even ordering money online, rather than using the exchange rates offered at the airports.
Try to avoid abroad withdrawals
Abroad withdrawals are not that bad, but if you are looking to save money avoid them at all cost. This is because they are likely to charge you high transaction and withdrawal fees.
You can only opt for an abroad withdrawal if your bank belongs to the Global ATM Alliance, which allows it members to make free withdrawals. Partner banks in foreign countries can also waiver this fee.
Therefore, you will need to do your research on banks, to see how abroad withdrawals will affect you, and maybe opt for another means of getting the local currency.
Opt for no transaction fee travel cards
Do your research and opt for a debit card and credit card that do not have any foreign transaction fees. Opening these accounts is usually free and they only charge a small amount annually for their service, but this often depends on how much you spend during your holiday.
Also, notify your bank or credit card company of your journey abroad, to prevent your card from being blocked due to security reasons.
Withdraw money from your home bank
Never rule out your home bank for last minute withdrawals. They tend to have competitive rates that can give you good cash for your travel.
Note that you will need some cash to get around the country immediately you land. So to avoid the bad rates and high fees offered at airports, just use your home bank.
Be smart when it comes to using credit cards
Do not withdraw money using your credit card when you are travelling abroad, as you will be charged high interest rates ASAP and it will continue until you pay up, the cash advance.
However, it is okay to make big purchases with your credit card. You will not have to worry about paying the balance until your interest-free days are over.
Change your foreign currency at home
Changing your currency athome gives you a chance to plan, and be ready for your trip. Besides, you can monitor the best times and days to make an exchange, for a better deal.
Take note that local moneychangers are usually very expensive, they sell the currencies at a high price, giving you little for your exchange.
Make use of travellers cheques
Traveller’s cheques are cheques that amount to the value of an exact amount as stated by the issuer. It can be cashed globally in major financial institutions.
However, do your research and see where they are accepted, as they are less favored nowadays.
Have a backup plan for when you lose your card
You can carry some emergency cash, in case you lose your card or forget about it at home. Likewise, you can inform your bank of your travel plans, so that in case you lose your card you can withdraw cash from their branches abroad. Just make sure you have their overseas telephone number.
Conclusively, you should approach currency exchange, the same way you approach flight and hotel bookings, for an affordable deal. Do your research, and know your best options in a bid to save some money.