Smart travel currency strategies
Here are ways to save cash when swapping New Zealand dollars for foreign money.
As a proud travel scrooge – and somebody who probably needs better hobbies – I have a new pre-flight ritual. After bag drop, but before the security screening violation, I swing by the foreign exchange desk and ask for the going rate for the foreign currency I am about to use (and already have in my wallet or loaded onto an account), I then thank the staff, turn and snigger.
My forex strategy is always validated by their currency quotes, which are always between 10-20 per cent worse. They don’t care. They still make a killing.
People will fret over how many socks to pack, but leave their foreign exchange until in the departure lounge. Here, they are hostage to shockingly bad bureau de change rates and high commissions. Don’t be one of these people. You will need cash almost immediately on arrival so use one of these strategies to make foreign exchange work better for you.
ATMs & cash
International cash machines usually offer better exchange rate conversions compared with airport kiosks, but you can be stung in other ways. New Zealand banks charge per international withdrawal, although some premium bank accounts quash these fees.
Additionally, the foreign ATM may add its own fee on top of that. You’re likely to be better off getting cash before you go. Be realistic about how much money you may need during your trip. Stop using your eftpos card abroad, as your bank nabs a 1-3 per cent commission on every swipe.
Credit cards
As they are secure and accepted worldwide, your credit card is a handy travel buddy. However, it’s better suited to paying for one-off higher expenses like hotels. Visa, Mastercard and Amex offer competitive spot rates on foreign currency, but often take a commission on every foreign swipe. Cash advance withdrawals will ensure a massive bill waiting for you at home because of fees (and interest on top of that). Best used for emergencies.
Prepaid travel cards
Goodbye travellers cheques! These are