If you are planning a trip abroad or a frequent international traveler, currency exchange is something you will have to deal with while sorting out your itinerary.
Whether you are travelling in a budget-friendly way or luxury way, getting the best rates and avoiding the hefty fees on exchange can make a huge difference. But the most troublesome part of this is figuring out the best way to exchange money as it will not be that easy.
So, how do you make sure that you are not losing money every time you swap your cash for a foreign currency?
With the help of this guide, you can easily break down everything you need to know about the currency exchange while travelling abroad.
Currency Exchange: Why it matters
Looking out for the best deals is something that we all do in our daily lives. The same applies to currency exchange as well. Getting the right exchange rate and minimizing fees can save you an amount of money which can be used elsewhere on your trip.
Here are the three main reasons why it matters:
- Some exchange services charge more than just the rate difference. These can include the extra service fees and commissions that can add up at last, which will be a huge sum.
- Exchange rates change constantly which can make you lose your money more. Always look for the right time to do the exchange.
- Choosing the right exchange method can save your money from unwanted charges. Some platforms are quick but costly, while others require effort but help you save.
5 Best ways to do currency exchange when traveling abroad
There are many ways you can choose to exchange currency, but not all are cost-effective. Let us explore the best 5 ways to exchange currency while traveling abroad.
- Exchange money before you travel
One of the great ways to avoid last-minute stress is to exchange the currency before you start your journey. It is the best-chosen way to save your money because banks usually offer better exchange rates than airports or hotels.
Always consider exchanging a small amount of money before you leave for immediate expenses and other needs. Finding a currency exchange service after reaching our destination is always a challenging task. It is always better to pre-plan things early as it will help you start enjoying your trip as soon as you land.
- Use ATMs abroad
Withdrawing money from ATMs is one of the easiest ways to get local currency. The only thing that needs to be considered is the fees they charge.ATMs from major banks typically have better rates than random currency exchange booths. Always try to withdraw large amounts at once than multiple small transactions as it will cost you more fees.
Some banks will charge for foreign withdrawals while others don’t. So, check whether your bank has a partner abroad where you are travelling which can help you save on the transaction fees.
- Use travel-friendly credit cards
There will be many offers on credit cards for travelers as it can be really useful for you on your international trip.
These cards mostly don’t have any transaction fees for foreign money withdrawals and will also get rewards or cashback on your travel purchases. These cards also help in giving emergency support and travel insurance, which is a great benefit of using travel-friendly credit cards.
- Avoid Airport or Hotel currency exchange booths
Airport and hotel currency exchanges are always a first and easy choice, but the rates are really terrible.
They usually charge high commissions and the exchange rates are usually bad. These booths may not offer multiple exchange options either, which will make you stuck with whatever rate they set.
These methods can only be used as a last option for exchanging your currency while traveling abroad. If you must exchange money at these booths, only exchange a small amount, just enough for your transport and some immediate expenses.
- Open a USD account
This option is the most suitable one for those who travel frequently. If you are someone who usually travels to countries where the US dollar is widely accepted, having a USD account can be of great help.
Having a USD account can hold US dollars without any constant currency conversion. It will help in making the international money transfers easier and helps in avoiding the unnecessary exchange fees when traveling to USD accepting countries.
Many online banks now offer multi-currency accounts, making it even simpler to manage foreign money.
Currency Exchange: Tips and tricks to handle while traveling abroad
Here are some tips and tricks to manage currency exchange while traveling abroad. Let us know more about it on how to handle it like a pro.
- Always try to carry a mix of cash and cards while traveling abroad.
- Before converting money into your travel country, research the exchange rates.
- Try not to accept any currency conversion at ATMs or stores.
- Always try to avoid exchanging your money at airports or hotels unless it is necessary.
- Make sure to have an international travel insurance plan which offers the benefit of emergency cash.
Conclusion
Handling the currency exchange smoothly can make a huge difference to your international travel experience. Whether you are a budget traveler or someone who likes to travel lavishly, knowing the best tips and tricks to manage currency exchange can help you save a good amount of money and avoid unnecessary fees.
With the above-mentioned smart currency exchange tips, you can focus on enjoying your journey without any financial stress of currency exchange rates.