The pandemic largely did away with cash in Australia.
You could go weeks without needing to find a reason to use so much as a $2 coin, but if you are travelling to other countries with less sophisticated banking reach than Australia, you will probably need to have cash on hand.
If you are happy to carry large amounts of cash, that’s fine, but if you are more comfortable withdrawing cash from an ATM then it’s important to take into account the likelihood of being slugged with fees.
It will take a little bit more research to find out about the fees for overseas withdrawals, but it could be worth it as it may save you hundreds over the course of your holiday.
Read: What not to pack for your next holiday
Thankfully, money transfer company Wise has done some of the hard work for you and the below table outlines the fees you will be charged in many popular destinations.
If you can’t be bothered doing the sums, what the above table means is that if you take out $50 a day for seven days while on holiday in Argentina, you will be charged $56.15 in fees, which can be quite the budget buster.
Compare that to Fiji, where the same amount of cash would only attract $8.78 in fees.
Wise chief product officer Nilan Peiris says that when people are budgeting for a holiday, they often don’t consider how much it will cost to withdraw money.
“As more households turn to cash in light of the cost-of-living crisis, cash machine fees need to be more clear for those travelling,” Mr Peiris says.
“Hidden fees have a big impact on people’s purchasing power both domestically and abroad, so it’s important that banks put the customer first, and be transparent about how much they are charging customers.”
Read: Our guide to good manners while cruising
Wise recommends:
- Do your research on where to withdraw your money. It may be cheapest to do this before you leave — however, it’s still best to avoid the Bureau de Change at the airport.
- Check what fees your card provider charges you. Although most providers allow withdrawals overseas, these are usually very expensive.
- Some providers may offer free ATM withdrawals abroad up to a certain threshold.
- To save money, either exchange money before you travel, or bring a multi-currency card to withdraw money once you arrive.
- If you’re able to, you can ‘shop around’ once you arrive at your destination. If there are several ATMs within a short distance of each other, it may be worth comparing their rates, as fees will vary from bank to bank.
- Never withdraw money on a credit card, as the fees will be very high, and you’ll be charged interest.
- If you’re given an option on how to ‘pay’ when withdrawing money at the machine, make sure you select the local currency.
Do you have any currency crushing habits when travelling overseas? Why not share your tips in the comments section below?
