Travel cheques are NOT a better option because banks charge higher conversion rate for travel cheques. It also becomes hectic to look for a bank while you are in a holiday mood.
However, Travel Cheques are the most secure to carry because they can be easily replaced if lost or stolen.
If you want to use Travel Cheques, then you must get them in your home currency. Otherwise you will lose your money for currency conversion at two times.
In some countries, banks charge heavily for exchange of travel cheques. You can minimise this charge by getting traveller cheques in larger denominations.
However, in comparison to Cash, the Travel Cheques get better exchange rates.
Debit Cards are also NOT a good option because banks will charge $2 to $5 as a transaction fee each time you use an ATM and then further charge 1 – 3% for currency conversion. In addition, 1% international transaction fee will be charged for Visa and Master Card. However, in Europe, many Banks do not charge such fee.
Avoid using Independent ATM machines. They always charge heavily so it is better to use only ATM at banks.
Credit Cards are the cheapest and the best option to carry as a Travel Money. However, you must make your full repayment at the end of each month. Otherwise hefty interest rate will be charged that will make this option the most expensive.
Filed Under: Cheap Travel Ideas