Money V Travellers Cheques

[kittykitty87]

My boyfriend and I are planning on taking a lot of spending money. He thinks we should take (for example) £200 cash and the rest in travellers cheques. Do you think this is a good idea or are we better taking all cash?

Is it easy to find places to get them changed and not be charged a fortune? We are staying on I-Drive.

 

[wayneg]

Problem with cash is you are usually only covered for £100-200 on your travel insurance.
If you buy travellers cheques you need to buy in $US, they are accepted just about everywhere instead of cash, there is no reason to convert to cash.

If you are taking a lot have you considered a fee free credit card? converting to either cash or travellers cheques will cost you anything upto 5% in conversion fees, just now the rate is around $1.55 but you will only get $1.46-1.50 depending where you convert. If you have any money left after your trip it could cost you upto 10% to change back.

Using a credit card like Post office (a few more) you can use at 99% of places you can use cash but no fees (almost $1.55 today) and no hassle converting. They are not for everyone but we save £100's every year with a Post office card.

 

[kittykitty87]

Thanks for that information. We hadn't thought about getting a fee free credit card. That sounds like a good idea.

Also, I didn't realise you could pay with travellers cheque. But your saying if we were to pay with them over the counter etc, they would add a charge on to the total to cover paying with the the cheques (if that makes sense).

 

[queendisney]

Thanks for that information. We hadn't thought about getting a fee free credit card. That sounds like a good idea.

Also, I didn't realise you could pay with travellers cheque. But your saying if we were to pay with them over the counter etc, they would add a charge on to the total to cover paying with the the cheques (if that makes sense).

They treat $ T/chq's exactly like cash. So if you got something for $10 and you signed a $50 t/chq you will get $40 in cash back. We normally take the majority of our money in t/chqs and just take a small amt of us$ to start with to pay tips and house keeping on first morning, there after we just take t/chqs. Didn't like the pre paid cards as find it hard to keep track of the balance while we are there.

 

[wayneg]

they would add a charge on to the total to cover paying with the the cheques (if that makes sense).

No, fees are in the UK when you buy and sell them, there are no fees in the US, they are treated as cash, only difference is you might need to show ID and they are insured.

 

[torsie24]

We have a FairFx prepaid card and it's great.

Highly recommend it for anyone going abroad and taking lots of spending money. You get a great exchange rate, too.

 

[scottishgirl87]

We have a FairFx prepaid card and it's great.

Highly recommend it for anyone going abroad and taking lots of spending money. You get a great exchange rate, too.

Agree

Personally can't be bothered with travellers cheques, much prefer my FairFX card.

 

[wayneg]

I haven't used TC's for at least 5 years, I find either cash or TC's hassle and expensive but I also don't like putting money on a card, I prefer to use someone elses money (Post Office)then pay after the holiday.
All options work, go with whichever works best for you.

 

[Constant]

I agree with Wayne on spending someone elses money!

We did use the pre-paid card for a while and works well for doing some saving and hedging of the exchange rate throughout the year. We always put a little aside when the rate was above 1.6 but having to keep track of balances etc. and then if we didn't spend it we weren't getting interest...... eventually made my head hurt with which was the best option.

So no fee credit card gives the best result for security and less hassle, only need to remember to pay it all off when we get back.

 

[jonboy]

i agree with veryone else cash or a card im not een on travellers cheuqes myself.

 

[queendisney]

def each to their own on this one...I hate the cards big time...tried them..didn't like them. T/chq's all the way for us..

 

[kittykitty87]

Thanks everyone for your responses. I will show them to my boyfriend and see what he thinks too