The top 4 best (and cheapest) ways to spend your money abroad (2024)

FAQs

The top 4 best (and cheapest) ways to spend your money abroad? ›

Travel credit cards

One of the cheapest ways of spending money abroad is a travel credit card. Like with debit cards, you can't just take any old credit card with you. Some will have non-Sterling transaction fees, as well as a hefty charge for taking cash out at an overseas ATM.

Travel credit cards

One of the cheapest ways of spending money abroad is a travel credit card. Like with debit cards, you can't just take any old credit card with you. Some will have non-Sterling transaction fees, as well as a hefty charge for taking cash out at an overseas ATM.

Use a pre-paid Travel Money Card

You can use them just like a debit or credit card – to pay directly in shops and restaurants or get cash out. You won't overspend or get into debt because your pre-paid card will only let you spend what you've loaded onto it.

Generally speaking, a debit card or prepaid travel card is the best way to withdraw cash abroad, as long as you choose one that doesn't charge fees for doing so. However, you should also watch out for other fees on prepaid cards, such as loading fees.

Using credit cards for purchases when possible and using ATMs to get local currency for when you need to pay cash are by far the best ways to pay for things when abroad because you will get the wholesale exchange rate rather than the less favorable retail rate posted in currency exchange facilities or at bank teller ...

Check with the merchant if to confirm if you'll be charged an international transaction fee. The best way to avoid the international transaction fee is to look for debit and credit cards that allow you to shop overseas without being charged international fees.

On top of the cash withdrawal fee, you will also need to pay interest on the cash you withdraw using your credit card. Avoid using a credit card abroad if you plan on making cash withdrawals due to the excessive charges that come with them.

How much cash should you travel with internationally? “I would say that anyone traveling for more than three days in a country should have the equivalent of at least $300 with them,” Granite said.

How do you carry cash when traveling internationally? ›

Look into a money belt that you wear under your clothes to keep your wallet with cash and any important documents close to your body. Never carry money in your back pocket, where pickpockets will have easy access. If carrying a purse or backpack, wear it across your body so it is always viewable.

Know your cards.

For credit cards, Visa and MasterCard are universal, while American Express and Discover are less common. US debit cards with a Visa or MasterCard logo will work in any European ATM. Go "contactless." Get comfortable using contactless pay options.

The cheapest way to transfer money internationally from India is to send funds directly from your bank account to a recipient's bank account.

If you invest in a travel card with an annual fee, then you likely won't have to deal with foreign transaction fees. But there are no annual fee cards with no FX fees, too, like the Bank of America^® Travel Rewards credit card and the Wells Fargo Autograph^℠ Card.

Best place to exchange currency: Your bank or credit union

Many banks offer currency exchange to their customers. Though there may be a small fee if you exchange less than a certain amount, your bank or credit union will almost always be the cheapest place to exchange currency.