travel

Travel Money UK 2026: How to Get the Best Exchange Rates and Avoid Fees

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Travel money is an area where small decisions make a meaningful financial difference — and where most people are routinely overcharged. Airport exchange bureaux can apply an effective margin of 10–15% against the mid-market rate, costing a typical family an extra £50–150 on a two-week holiday. Using the wrong debit or credit card abroad can cost 2.75–3% on every transaction plus a fixed fee. With the right combination of preparation and card choice, you can come close to the interbank exchange rate and avoid all foreign transaction fees.

The Worst Ways to Get Travel Money

The three most expensive ways to obtain foreign currency: exchanging at the airport (margins typically 8–15% above interbank rate, often under time pressure), using your UK high-street bank's debit card at foreign ATMs (typically 2.75% foreign transaction fee plus £1.50–2 ATM fee per withdrawal), and withdrawing cash via credit card abroad (treated as a cash advance — typically 3% fee plus immediate interest at 25–30% APR). Dynamic Currency Conversion (DCC) — where a foreign ATM or card machine offers to convert your transaction 'as a convenience' into Sterling — also typically applies a poor rate. Always decline DCC and select to pay in the local currency.
  • •Airport exchange: 8–15% margin — never use for large amounts
  • •UK debit card at foreign ATM: 2.75% fee + ATM fee
  • •Credit card cash withdrawal abroad: 3% + immediate high-rate interest
  • •Dynamic Currency Conversion (DCC): always decline, always pay local currency
  • •Even 'no commission' bureau de change often has a poor exchange rate built in

Best Cards for Spending Abroad

Several UK banks and financial apps offer fee-free foreign currency spending and ATM withdrawals. Chase UK offers zero foreign transaction fees and free ATM withdrawals abroad (up to £500/month). Starling Bank offers fee-free spending and ATM withdrawals abroad (up to £300/day or £2,000/month). Monzo offers fee-free spending abroad, and ATM withdrawals up to £200/month free (£200–400/day at 3% fee, above £400 at 3% fee). Revolut (standard free account): interbank exchange rate on weekdays up to plan limits; weekend surcharge applies and some currencies have higher margins. For credit cards: Barclaycard Avios Mastercard, Halifax Clarity, and Aqua Reward offer zero foreign transaction fees.
  • •Chase UK: zero foreign fees, free ATM abroad up to £500/month
  • •Starling: zero fees, free ATM up to £300/day abroad
  • •Monzo: zero fees, free ATM up to £200/month
  • •Revolut: interbank rate (weekdays, within limit) — avoid weekends
  • •Halifax Clarity credit card: zero foreign fees, no ATM cash advance fee

When to Buy Currency and Where

If you want physical cash for your trip (useful for tipping, markets, small vendors), buy it in advance online rather than at the airport. Online comparison sites (Caxton, Travel Money Club, M&S Bank, Post Office) typically offer 5–8% better rates than airport exchanges. Order at least 3 days in advance for delivery. The best rates are often mid-week (Tuesday–Thursday), as weekend and holiday surcharges apply. If buying in person, city centre exchange bureaux (independent or supermarket-based) consistently beat airports and high-street banks. Take more than you think you'll need in cash — running out and exchanging at a local kiosk abroad is usually expensive.
  • •Online comparison: moneysavingexpert.com/travel-money lists best rates daily
  • •Order 3+ days in advance for home delivery
  • •Best rates: Tues–Thurs, avoid holiday peaks
  • •City centre exchange vs. airport: typically 5–8% better rate
  • •Supermarket and Post Office exchange: consistently competitive

Avoiding ATM Fees Abroad

When using ATMs abroad, follow these rules: use a Chase, Starling, or Monzo card to avoid fees entirely (within monthly limits); use bank-branded ATMs rather than independent ATMs (often owned by Euronet, Cardtronics, or similar) which may charge additional fees on top of your bank's fees; always select 'local currency' when prompted (decline DCC); and withdraw larger amounts less frequently rather than small amounts frequently (if you do face a per-transaction fee, larger transactions mean fewer fees). In countries with multiple card network options (Visa, Mastercard), both are generally well accepted — choose whichever your fee-free card uses.
  • •Use Chase/Starling/Monzo: zero ATM fees within monthly limits
  • •Bank-branded ATMs over independent (Euronet etc.) — may add own surcharge
  • •Always select 'local currency' — decline DCC
  • •Withdraw larger amounts less often if facing per-transaction fees
  • •Check ATM fees before travelling to specific countries

Frequently Asked Questions

Is Revolut safe to use as a travel card?+

Yes — Revolut is FCA-regulated and FSCS-protected up to £85,000. It's a legitimate financial institution used by millions. The standard free tier has good travel features.

Should I take cash or just use cards?+

Take a fee-free card (Chase, Starling, or Monzo) as your primary method, plus a small amount of local cash (£50–100 worth) for situations where cards aren't accepted.

What about travel money for currencies not widely used?+

For less common currencies, comparison sites may have fewer options and margins are often higher. Order further in advance and consider whether carrying some US dollars or euros (as a second widely-accepted currency) makes sense.

Can I use contactless/Apple Pay/Google Pay abroad?+

Yes — contactless and mobile payments work wherever the card scheme (Visa/Mastercard) is accepted, using your card's exchange rate. Particularly useful in countries where card acceptance is very high.

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