Family and friends are always asking me what’s the best way to take and spend money when travelling. In some parts of the world cash is dead (think Sweden). In others it is alive and kicking, supporting the alternate economy.
In this post:
Best way to access your money when travelling
When travelling, my order for spending is:
- Credit card with no FX fee (good for points and insurance) eg the ANZ Rewards Travel Adventures Visa card
- Debit card with no FX fee (good when the credit card does not work)
- Swapping cash with family and friends using fair mates rates
- Cash from an ATM
- Changing my AUD at the first opportunity (this is an act of desperation)
I do find it important to have some local currency of the country I am visiting; if I don’t bring it with me then I need to find an ATM quick smart. There are many options available, the easiest option being to just take your home-bank ATM card. What’s the worst thing that could happen…
UBank does not charge a foreign transaction fee
Well, you could be hit with an ATM fee and the sneaky 3% ‘foreign transaction fee’. If you withdraw A$1,000 from an ATM there’s a $30 fee that’s easy to avoid. That money could be spent on something more useful, such as a return ticket from Sydney Airport (unless you are a walker) or two spritzes at the Campari bar in Milan.
The card I am currently travelling with is the UBank Ultra card. I have used it in ATMs and hotels in Italy where it was readily accepted. As it’s a Visa it’s accepted at most destinations.
As with all products, the UBank debit card has its pros and cons.
Advantages of the UBank Debit Card
- It’s supported by NAB, so the money is ‘safe as a bank’.
- There are no charges for
- ATM usage,
- FX conversion, or
- account keeping.
- Separating your travel accounts and expenses from your ‘real’ bank accounts can be safer if you lose the card or your card is hacked.
- It can be useful to separate your savings and budget for your trip.
Disadvantages of the UBank Debit Card
- At time of writing, there is no access the New Payments Platform (confusingly known as OSKO or PayID). Plan ahead and expect to wait a few days for the money to turn up on public holidays and weekends.
- As there is online-only access, you will need to pass the online ID and wait for the card to turn up. Don’t bother turning up to a NAB branch as my friend Loveday did; you will receive no help whatsoever.
- The amazingly frustrating and somewhat complicated “sweep” system can leave you short of cash without some planning.
- Really poor statement description means that you’ll need to dig around on the site to figure out the rate and amount.
Activating a UBank Debit Card
Some friends of mine have had problems with this card overseas. Before you leave on your holiday make sure you check your card is active. You can use a NAB ATM to change your password into something more memorable. Once you have done this make an eftpos transaction where you need to enter your PIN. Your card should then be ready to go.
Summary of the UBank Debit Card
For not much effort you can save a quite bit of cash. I always have my Ubank debit card handy when I travel and top it up the week before I go.
Tip: if your account becomes inactive (between holidays) you will need some extra time to reactivate your account with the call centre. I had to make two calls to get mine sorted.
For more information visit Ubank
