If you live in the UK you might know that if you go abroad you pay extra for any card transaction you make or if you withdraw cash from an ATM. The fee is around 3% for each transaction but it can vary from bank to bank. Some banks also might have a minimum fee which makes things even worse. What if you don’t want to pay extra while abroad? There is a solution!
First of all you might want to check with your bank if they have a card that you can use abroad with no extra fees. The exchange rate might not be the best one, but this is still an option to consider.
There are several other banking options on the market to help you with this problem. The most popular are Revolut and Monzo. Those are alternatives to your regular bank account with some sweet perks. Revolut converts GBP to any currency using Google exchange rate while Monzo uses Master Card exchange rate.
How it works
I haven’t used Revolut myself, but you can always go to their website and read more about it. Here I am going to tell about Monzo and how to use it to save money abroad.
To sign up for the service you need to download an app and fill in your details. It is absolutely free to join and use. Then you’ll receive a card that you can top up and start using straight away.
Here are some FAQ from their website that might help you better understand how the service works and what are the benefits:
Is Monzo a bank?
Yes! “Monzo Bank Ltd” is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority and the PRA. Our Financial Services Register number is 730427.
What fees are charged for using my card internationally
We don’t charge any fees for using your card abroad, neither at points of sale nor at ATMs ? We pass the Mastercard exchange rate directly on to you!
Is my money safe with Monzo
Once we launch current accounts, your money will be fully protected by the Financial Services Compensation Scheme (FSCS), meaning that all your money up to £85,000 is guaranteed by the British Government.
When using the card abroad you will be given an option to pay either in GBP or in a local currency. Make sure you make all transactions in local currency to get the best deal.
You can use Monzo Card while being in the UK as well. It is contactless and it has a nice mobile app to get instant spending notifications, add receipts to your purchases, manage your budge and more.
Don’t forget to go to Revolut website to see what they offer and also search for similar services to find the one that fits your needs.