Make your gap year travel money go further

September 2nd, 2010

The recession and resulting unemployment are adding to the numbers taking a gap year. It’s not just students heading overseas, but people taking a career break or escaping the UK while jobs are few and far between.

When you are heading overseas for several months, or even longer, you need to think about your budget as well as how to access your money. Taking all your spending money in cash is not a sensible option, if money is lost or stolen you have no way of recovering it. UK debit or credit cards can often charge expensive foreign exchange fees of 2.75%, plus a 2% ATM withdrawal fee on debit cards. Nationwide’s FlexAccount has been a life saver for travellers recently, with no foreign exchange fees applied. However, from November 1st Nationwide will introduce a 2% foreign exchange fee and £1 ATM withdrawal fee for transactions abroad. So, what is the best way to take money abroad on your gap year?

A great option is a pre-paid travel money card. These cards come in Euros, USD or Pounds, and you load them with credit and then spend, just as you would with a debit or credit card. The advantage is that they are designed for use abroad, so the Euro and Dollar cards allow you to load a card with Euros or Dollars at competitive exchange rates compared to cash. When you are spending in the cards currency you will usually incur no transaction fee, so what you see on the bill is what you actually pay - there is no need to worry about the foreign exchange fees and transactions fees associated with bank cards.

If you’re travelling to several destinations with different currencies, Pound currency cards generally offer very low transaction fees as compared to UK bank cards, usually 1.5% - 2%, saving you 1% on every transaction or purchase you do abroad.

Myles Stephenson of my Travel Cash explains "With gap year costs running into the thousands, selecting the right travel money product is vital. For example, on a six month gap year trip you could save in excess of £400 by using my Travel Cash Multi-Currency card. This could easily equate to the cost of a couple of weeks of travelling. As you can only spend what has been loaded onto the card, it is easier for travellers to monitor their budget and avoid overdrafts.”

However, just make sure you check the fees associated with each card, as some will charge higher foreign exchange fees or dormancy fees if you stop using it. If you spend a little time doing some research, you can save yourself a lot of money in the long run.

To compare currency cards, visit our currency card comparisonpages.

With rising travel insurance costs for the baby boomer generation, saving on travel money is the sensible option

August 20th, 2010

Older people looking for travel insurance often face higher premiums or can even struggle hard to find companies willing to provide travel insurance at all. Many insurers and high street travel agents refuse to cover anyone above 80 and specialists, though they provide the necessary cover charge a very high premium. To exacerbate this, the recent merger of Help the Aged and Age Concern suddenly saw the cost of travel insurance soar a whopping 600% for some pensioners. For one 80 year old couple this merger saw their annual premium increase from £168 to £1,002 as reported in Telegraph.

However, this rise in travel insurance shouldn’t stop people travelling abroad, and you can save on your holiday in other ways, without affecting the quality of your trip, by simply researching your travel money options and looking at online providers. If you think that your travel agent or a high street bureau de change is giving you the best possible deal, then think again. Online providers often have lower overheads so can give you better exchange rates, with the convenience of direct to door delivery! To compare the various travel money options visit our travel money as cash or currency card comparison pages.

Make sure you know your travel insurance details to avoid losing out

July 30th, 2010

Travel insurance is one the most important documents, covering those unexpected emergency costs or medical bills when you are abroad. However, you may be in for a shock if you haven’t read the fine print and are not aware of the terms and conditions which are easily invalidated.

Here are some travel insurance mistakes that can make your claim null & void.

• Claims for stolen property will require a proof of your ownership. The make and model of your digital camera may not be enough and some insurance companies will require you to show proof of purchase, such as a receipt, credit card statement or a photograph. You may also be required to produce a local police report and a crime reference number.

• Any risky activities like bungee jumping, winter skiing, water skiing or quad biking are often not covered by standard travel insurance policies. It may not be much of a problem if you are travelling in Britain, but if abroad any medical bills resulting from an accident caused by these activities may be rejected.

• Accidents caused as a result of drinking alcohol will also usually be rejected.

• If you have annual travel insurance for your family, it is advisable to check whether all members of the family are insured. Family travel insurance policies usually cover two adults and two or three unmarried dependants under the age of 18, with the exception of dependants full-time education. So a simple double check, can avoid any unexpected surprises when abroad.

• An EHIC - European Health Insurance Card - allows you to access state-provided healthcare in all European Economic Area (EEA) countries and Switzerland at a reduced cost or sometimes free of charge. Your insurer may waive off your excess charges if you have this card.

So when you go for your vacation this summer ensure that you and your family are adequately insured for your holiday. Keep the 24 hour helpline number of your insurance provider handy in case of emergency.

How much does it cost to use your UK cards abroad?

June 15th, 2010

So many of us still use our UK bank or debit cards when we travel abroad, you have easy access to your cash and if you want to make that extra purchase then you can quickly and easily! But how much does it actually cost you? Opening up your bank statement or credit card bill once you return can be a daunting process, and the cost always seems to be more than expected. But do you really understand how the banks charge you when using your card abroad?

When booking our holiday everybody tries to find the best deal, but once we get abroad so few us of actually understand how much withdrawing or spending money on a UK bank card costs. Find out below…

When you are abroad most banks will charge around a 2.75% loading fee on each foreign currency transaction (e.g. Barclays, HSBC, NatWest). This is 2.75% of the total amount withdrawn/spent and is usually hidden within the exchange rate, so you often don’t realise you are paying it!

- For every £200, this means you are charged an additional £5.50

In addition, if you take money out of an ATM then you are usually charged an addition 2% - 2.5% of the transaction amount. These charges are similar for debit or credit cards but are often capped at c. £5, so it is better to withdraw larger sums of money when using the ATM so you can minimise these fees.

- For a £200 cash withdrawal, this is an addition £4 (in addition to the £5.50 above)

Where you need to watch out is transaction, or purchase fees on debit cards. Barclays and HSBC debit cards don’t charge you a transaction fee, but Lloyds and NatWest do charge, £1 and £1.25 respectively.

So, the cost of your purchase or withdrawal can easily be increased by £5.50 - 9.50 for every £200.For any other part of your holiday would you so willingly waste money?

However, if you use a prepaid currency card where cross currency transaction fees are c. 1.5-2.5%, ATM withdrawals are free - £1 and transaction fees are free then you can save pounds every time you spend. For example, the same cash withdrawal would have cost £124.91 on My Travel Cash’s Multi-Currency card, £123.91 on FairFX’s Anywhere Card or £125.13 on CaxtonFX’s Global Traveller Card.

By understanding the charges your card applies you can start to spend more sensibly abroad, and find the cheapest way to access your money. Your bank will be able to provide the details of their charges, but remember to read the small print! Choosing your international or holiday bank cards can save you pounds, for example the Nationwide Flexaccount does not charge a foreign exchange loading fee giving you some of the best exchange rates available, and the cheapest cash withdrawal! If you don’t want a new debit card, then currency cards provide a convenient and cheap way to take money abroad. To find out more about currency cards, then visit our currency card comparison pages.