OTHER OPTIONS

An increasingly popular option for accessing money overseas is a prepaid card, such as Virgin Money Prepaid Travel Mastercard.

In this case, you choose a US dollar or euro card and top it up with that currency before you go, thus negating transaction fees (although ATM withdrawals incur a charge of US$2 or €1.50 and the exchange rate will be dictated to you).

You could also consider new technology. Transfer Wise offers debit cards for a free “borderless account”, which lets you hold money in 40 different currencies. Currency is then exchanged at the mid-market rate with no extra fees.

The We Swap Mastercard provides low fees by exchanging money between users rather than buying currency in the FX markets. Users convert the money on their card into their desired currency in advance and then spend using the currency while abroad. However, it can take longer to get your money unless you pay a higher fee, and the lowest rates are only available in 18 core currencies. A big drawback for some will also be the annual spending limit of £12,000 and that you are limited to a maximum of 15 transactions and two ATM withdrawals a day.

Other financial upstarts such as Monzo (monzo.com) and Starling Bank (starlingbank.com) are popular with a young audience, but their smartphoneled approach could have benefits for travellers of any age. They offer current accounts and aim to make spending as transparent as possible, with easy-to-use apps that send an instant notification whenever you make a purchase and provide clear breakdowns of where you spent your money over a given period.

Traditionalists may be put off by the quirky design. More tempting might be free overseas withdrawals up to £200 every 30 days, no conversion fees, a promise to pass on the base exchange rate and an easy way to block your card on your phone if it is lost or stolen.

Curve (curve.app) offers cards and an app that let you put all of your accounts in one place, so you can choose which to use with each purchase. If you choose to pay with the wrong one, it lets you go back and charge it to another. You get real-time updates on your spending in each currency, and the card provides cashback and no foreign transaction fees.

Transfer Wise offers debit cards for a free borderless account, which lets you hold money in 40 currencies