5 Ways to Exchange Money This Winter When You Travel Abroad
Traveling to a foreign land having a different currency system can land you in currency exchange issues if you are on your first foreign visit. Having a lack of knowledge about whether should I exchange currency before I travel or after visiting the destination may lead you to get ripped off by hefty charges which can certainly bring your travel budget upside down.
So gaining a better understanding of money exchange before making foreign visits is not a bad idea at all. The easiest way to exchange your currency may not always be the best option for you. You can either exchange your money before traveling or after reaching your destination point but you have to make sure that you are getting the best exchange rate possible.
During these times, travel has almost come to a standstill & people are in a state of dilemma whether to travel abroad or not. Though some movement is being recorded and the tourism sector is poised to see a slow recovery. For people who are going to have their first foreign visit, this blog is a must-read for them if they want to have a better understanding of different ways to exchange their money.
What not to do while making a traveling currency exchange?
Don’t exchange your currency at airports. You must be wondering why so? though it might be the easiest way for traveling currency exchange it certainly isn’t economical. Airport kiosks charge you hefty currency exchange rates, they charge you with consumer exchange rates rather than bank exchange rates. For example, if you are converting your money from Indian Rupees to American Dollars, you can end up getting 10% less cash though this rate of exchange differs with different vendors.
Also don’t carry too much money with you, as you will have to get it exchanged during the beginning and also at the end of your travel. So more the money you will get exchanged, the more will be the loss incurred by you.
As you can use debit cards for withdrawal of cash in a foreign land during your trip, make sure your bank knows about it and that you will be using it. So don’t use your debit card without any confirmation from your bank’s side as it can lead to its locking.
Here are the 5 best ways to exchange your currency at the best possible rates while you are traveling abroad:
- Using Credit Card
- Buy Foreign Currency from your Bank
- Use of ATMs
- Private Money Exchanges
- Buy Foreign Currency via Online means
Best ways to exchange currency when traveling abroad
Using Credit Card
Credit Card companies can offer you the best exchange rates possible, but the smartest way to use credit cards is to get a credit card that waives off additional fees like transaction charges. This can save you up to 3% of every purchase you make. But make sure you don’t use your credit card for cash advances. If you are interested in this make sure you apply for it at least 6-8 weeks before your foreign trip.
Buy Foreign Currency from your Bank
One of the most efficient ways to exchange your money is by paying a visit to a local bank or credit union. They provide you with decent exchange rates though you might have to pay transaction charges. But having foreign currency in your pockets even before the start of your trip is surely gonna boost your confidence as you don’t have to stand in lines at your destination for exchanging your money.
Use of ATMs
Using an Automatic Teller Machine or ATM is the most effective way to get local currency if you want to transact a bigger amount in one go rather than small amounts but more in number. But before leaving the country for your trip, make sure your bank knows that you will be taking money out from your debit card in your foreign destination.
Private Money Exchanges
To compete with each other, these private money exchange businesses that provide currency exchange services try to provide the best possible exchange rates to travelers like you. But before option one Private Money Exchange firms make sure that you have done good research. Compare exchange rates with other private firms, only then choose one that delivers with the best exchange rates.
Buy Foreign Currency via Online means
Getting money exchanged offline is not the only option available in this digital world now. There are many currency exchange websites as well as mobile applications of authorized firms that deliver currency exchange services. Though before choosing one to get foreign currency online make sure you compare the exchange rates with your banks or private exchange firms so that you can opt for the best. Just like credit cards you also need to apply for currency exchange a few weeks before your travel.
These digital currency exchange services provide you with a home delivery system too, where you can just order the amount in the currency you need & wait for it till it arrives. Make sure you are there to receive it!
However, there are other ways too to exchange your money like International Travel Cards, which is cheaper than credit/debit cards. The unique thing about them is that you can recharge them by the prepaid method and use them in foreign lands for making purchases or withdrawal money. Unlike credit cards or debit cards, some International cards may have the option to carry more than one currency.
Currency exchange while traveling can be a daunting task for newbies as they are more prone to getting ripped off by money exchange firms. So it becomes important for them to do some research on the best possible ways to get the best exchange rates before they travel to a foreign land. It not only makes them less vulnerable to getting hefty charges during exchanges but will also help them to get a better understanding of the process.
It is not like you should never get your money exchanged from Airport kiosks, if it’s an emergency, you really should opt for that but in most cases, we should avoid kiosks.