Five holiday cash tips: where to get the best exchange rates and the best pre-paid and credit cards to use (2024)

FAQs

Where is the best place to get the currency exchange rate? ›

Banks, credit unions, online bureaus, and currency converters provide convenient and often inexpensive currency exchange services. Once on foreign soil, the best means to convert currency is to use a foreign automated teller machine (ATM) or identify whether your bank has ATMs or banking affiliates nearby.

Using a credit card with no foreign transaction fees and choosing to make purchases in local currency will nearly always save you money. Currency conversion apps can help you better understand pricing and identify hidden charges.

Online firms such as Revolut may offer a better exchange rate. Along with low-cost providers Monzo, Starling Bank and others, Revolut holders can expect fee-free cash withdrawals (usually subject to a monthly limit).

While credit cards are easy to carry and more secure than cash, you should always have some local cash on you when traveling. It's just good sense. Besides the fact that some local shops and vendors won't accept credit cards, having some cash provides a safety net in case your bank shuts off your card for any reason.

Banks and credit unions are generally the best places to exchange currency, with reasonable exchange rates and the lowest fees. Here's how financial institutions — and a few other places — can help exchange currency near you.

It's often more cost-effective to exchange a small amount of euros in America for initial expenses and then withdraw euros from ATMs in Europe for a better exchange rate and lower fees.

Paying by card can be easier and more convenient, without the potential security risk of carrying cash around you. You'll just need to check your card provider's fees for spending abroad. But the good news is that many travel credit cards for Europe come with no foreign transaction fees.

All else being equal (leaving aside card fees/rebates/benefits), MasterCard does generally provide the best exchange rates for the cardholder. But like we said, all else being equal. As a savvy consumer, you'll probably have several credit cards at your disposal.

Wherever you wander in Europe, it's wise to travel with cash euros. While ATMs and card facilities are widespread across the continent, this cannot always be relied upon. Some countries or areas off the beaten track have yet to fully embrace card payments, so cash means you won't get caught short.

Exchanges- Currency-exchange services tend to offer a slightly better deal than the banks, such as the Vancouver Bullion & Currency Exchange (VBCE), and usually have best-rate guarantees. So, if a bank offers you a rate, you can show the VBCE and get a better rate.

Who has the highest exchange rate for USD? ›

Kuwaiti Dinar (KWD)

The Kuwaiti dinar is the strongest currency in the world, with 1 dinar buying 3.26 dollars (or, put another way, $1 equals 0.31 Kuwaiti dinar). Kuwait is located on the Persian Gulf between Saudi Arabia and Iraq, and the country earns much of its wealth as a leading global exporter of oil.

Typically, the least busy times of the week are Mondays, mid-week and the weekend (excluding Friday). These days have the lowest number of transfers in the week, so you might expect to see less fluctuation in the mid-market rate.

Prepaid currency cards are a secure way to make purchases on trips abroad. They can be a handy alternative to paying with cash and debit or credit cards. They can also help you manage your spending and stick to a holiday budget.

A good rule of thumb, though, is that, on average, you should plan to carry between $50 and $100 per day in the currency of the country in which you're travelling. As with all things, research is your friend here. Understand where you're travelling and what the local customs regarding cash are.

It's completely up to you whether you exchange money before you travel to Europe, or get your euros when you arrive. The only thing to bear in mind is that you have more control and more choice if you do it in advance.

Definitely, use a currency broker. International payments can be made cheaper and faster than your bank. A bank could charge up to 4% in exchange rates costs, whereas a currency broker will normally be under 0.5% from the mid-market.