How to Save on Travel Money: The Best Ways to Take Money Abroad
Published 26th of September 2012·Updated 23 April 2026
Reviewed by: Reviewed for accuracy April 2026
The cheapest way to access money abroad is to use a specialist travel debit or credit card that charges no foreign transaction fees and offers exchange rates close to the interbank rate. Airport currency exchange bureaux are consistently the most expensive option; avoid them unless you are in an emergency.
Short Summary
Standard UK bank cards typically add a 2.99 per cent foreign transaction fee on every purchase, plus an additional fee for cash withdrawals abroad. On a two-week holiday with £2,000 of spending, that could cost £60 or more in unnecessary fees.
Specialist travel cards from providers such as Starling Bank, Chase UK, Monzo, and Wise offer fee-free spending abroad at near-interbank exchange rates. These are free to open and have no annual fee.
Currency exchange bureaux at airports typically offer rates 5 to 10 per cent below the interbank rate. Exchanging £500 at the airport can cost you £25 to £50 more than using the right card.
Pre-ordering cash online for collection at an airport bureau (rather than exchanging on the day) gives you a significantly better rate. The best online currency rates come from the Post Office, Sainsbury's Bank, and specialist providers such as No1 Currency.
What is the cheapest way to spend money abroad?
Using a specialist travel debit or credit card is the cheapest way to make purchases abroad. These cards apply the Mastercard or Visa exchange rate, which is very close to the interbank rate, and charge no foreign transaction fee. The best options available to UK residents in 2026 include:
| Card | Type | Foreign transaction fee | ATM withdrawal fee |
|---|---|---|---|
| Starling Bank | Debit | None | None (fair use limits apply) |
| Chase UK | Debit | None | None (up to £1,500/month) |
| Monzo | Debit | None | None (up to £200/month in EEA, £200/month outside) |
| Wise | Debit/multi-currency | None up to fair use limit | None up to £200/month |
| Halifax Clarity | Credit | None | None (interest applies if balance not cleared) |
| Barclaycard Rewards | Credit | None | None (interest applies on cash) |
Always clear your credit card balance in full each month to avoid interest. For cash withdrawals on a credit card, interest typically starts from the day of the withdrawal.
How do I get the best rate when exchanging cash?
If you need physical cash, the order from best to worst rate is roughly: online pre-order for airport collection, Post Office, high-street bureau de change, supermarket exchange desk, airport exchange bureau on the day, and hotel. The difference between the best and worst options on a £500 exchange can be £30 to £60.
For online pre-order, compare rates at:
- Post Office (postoffice.co.uk)
- No1 Currency (no1currency.com)
- Sainsbury's Bank (sainsburysbank.co.uk)
- M&S Bank (marksandspencer.com/banking)
Use a comparison tool such as TravelMoneyMax (run by MoneySavingExpert) to find the best rate on the day you are buying.
Should I use a prepaid travel card?
Prepaid travel cards let you load a fixed amount of money in a foreign currency before you travel. They can be useful for budgeting because you cannot spend more than you have loaded. However, they are not always the cheapest option; some charge loading fees, inactivity fees, or poor exchange rates.
Wise (formerly TransferWise) is the best-regarded prepaid travel card for most purposes. It holds multiple currencies, charges low conversion fees, and is accepted wherever Mastercard is accepted. Caxton and Post Office Travel Money Card are other options. Check all fees carefully before loading.
Should I use a debit card or credit card abroad?
Both work well if you have a specialist travel card. The key difference is that credit cards offer stronger consumer protection under Section 75 of the Consumer Credit Act for purchases between £100 and £30,000. If a hotel or activity provider fails to deliver what was promised, you have additional recourse through your credit card provider.
For cash withdrawals, a travel debit card (such as Starling or Chase) is better than a credit card because credit card cash withdrawals typically accrue interest immediately, even if you pay off your balance in full.
How much cash should I take abroad?
Take enough for situations where cards are not accepted: small local cafes, markets, tips, taxi drivers, and emergencies. For most European destinations, £100 to £200 in local currency is sufficient for a week. For cash-heavy destinations in Asia, Africa, or parts of Eastern Europe, take more.
Use your travel card for all card-accepted purchases and reserve your cash for situations where it is genuinely needed. This minimises the amount of currency you need to exchange and reduces the risk of carrying large amounts of cash.
FAQ
Why is it so expensive to exchange money at the airport?
Airport currency exchange bureaux face very little competition within the terminal and know that many customers are short of time. They typically offer exchange rates 5 to 10 per cent below the interbank rate and may charge additional commission on top. If you must use the airport, pre-ordering online for collection there gives you a much better rate than exchanging at the counter on the day.
Is it better to pay in local currency or British pounds when using my card abroad?
Always choose to pay in local currency. When a foreign terminal offers to charge you in pounds sterling (this is called dynamic currency conversion), it applies its own exchange rate, which is almost always worse than your card provider's rate. Selecting "local currency" ensures your bank applies its own (typically better) rate.
What happens if I lose my travel card abroad?
Call your card provider immediately to freeze or cancel the card. Starling, Chase, Monzo, and Wise all offer instant card freezing via their smartphone apps, which is faster than calling a helpline. Most providers will send a replacement card to a UK address. Carry a backup card from a different provider; keeping all your money on a single card is a risk.
Can I use contactless or Apple Pay abroad?
Yes. Contactless and mobile payments (Apple Pay, Google Pay) work at terminals that accept contactless abroad, and your travel card's foreign transaction fees (or lack of them) apply in exactly the same way as a physical card tap. This is often the easiest and most secure way to pay for small purchases.
What is the best way to send money abroad?
For international transfers, Wise, Revolut, and Western Union typically offer better rates and lower fees than high-street banks. Wise is regulated by the FCA and is generally considered the most transparent option, showing you the exact exchange rate and fee before you confirm the transfer. Compare rates at the time of transfer; they change daily.
Do I still need travel insurance if I have a travel card?
Yes. A travel card provides no insurance cover. Travel insurance covers medical emergencies, trip cancellation, lost luggage, and personal liability; these are entirely separate from how you access money. Always take out comprehensive travel insurance before you travel. If you have an NHS number and are travelling in Europe, a UK Global Health Insurance Card (GHIC) provides access to state healthcare in EU countries.