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Travel-friendly money moves for your 2020 adventures
There’s no better feeling than travelling to places unknown or relaxing on a tropical beach holiday. But the last thing you want is to come home to unexpected debt from your travel spending.
It’s easy to rack up overseas costs, including foreign ATM fees and currency conversion fees, when you’re living in the moment. However, if you can put in a little time and planning before your trip, you could save big.
There are a few ways to keep overseas costs down, including:
- Travel money cards
Travel money cards are preloaded with foreign currency before you travel. You can lock in an exchange rate, load multiple currencies onto a single card and avoid some transaction fees, like currency conversion fees.
These can be purchased at Australia Post. Keep an eye on exchange rates in the lead up to your travels so you can try to lock in exchange rates when the Australian dollar is buying the most.
- Overseas-friendly bank accounts
If you’re not interested in loading your money onto a prepaid card, you could consider opening an overseas-friendly bank account. There are a range of bank accounts in Australia that don’t charge foreign transaction fees.
Bank accounts with no foreign transaction fees:
| Bank | Account | About |
| ING | Orange Everyday | Shop online and overseas and you pay no ING international transaction fees, when you deposit $1,000 or more per month and make 5+ card purchases that are settled (not pending) each month. |
| HSBC | Everyday Global Account | Buy, hold and spend up to 10 currencies (including AUD). No fees for withdrawing cash overseas and no foreign transaction fees. |
| Citi | Global Currency Account | Buy, hold and spend up to 10 currencies (including AUD). Pay $0 Citibank fees for any overseas ATM or in-store transactions when the currency you are withdrawing is the same currency of your account. Where the currency you are withdrawing is different to the currency of your account, a 2.5% ATM foreign exchange fee will apply. |
| UBank] | Ultra | No ATM withdrawal and foreign exchange fees overseas or for online purchases with overseas merchants. |
| Macquarie Bank | Transaction Account | No international purchase fees when you shop instore or online overseas. No foreign ATM fees. Access to Macquarie Mastercard FX exchange rates. Travel Mode feature available in app. |
Note: data accurate as of 17 December
Keep in mind, an ATM may charge you a foreign ATM fee. Ensure you’ve read through the bank account terms and conditions for a breakdown of all fees and costs before applying.
- Overseas-friendly credit cards
If you prefer to whip out the plastic when in holiday-mode, credit cards that charge zero foreign transaction fees may be better suited to you.
Credit cards with no foreign transaction fees:
| Bank | Credit card | Rate |
| Westpac | Lite Card | 9.90% |
| Bankwest | Zero Platinum Mastercard | 17.99% |
| Macquarie Bank | Platinum Card | 20.70% |
| Latitude Financial | 28 Degrees Global Platinum Mastercard | 21.99% |
| FlexiGroup | Skye Mastercard | 23.99% |
Note: data accurate as of 17 December
When choosing a credit card for your next holiday, consider looking for one that not only doesn’t charge foreign transaction fees, but also charges low ongoing and annual fees, or none at all.
Be aware that low fees can result in higher interest rates, which will leave a sting in the tail when you come home from your holiday. RateCity’s database shows the average credit card purchase rate for November 2019 was 17.05 per cent.
You don’t want to go into debt or make higher card repayments when you return. Do your research and look for a credit card which could balance low fees and low rates for your overseas trip.
Disclaimer
This article is over two years old, last updated on January 2, 2020. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent credit cards articles.
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Product database updated 28 Nov, 2024
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