Your money abroad: things to know before, during, and after your trip
Exploring new places is exciting – tasting new foods, taking 58 selfies by local landmarks, and trying out your Duolingo skills. But using your money abroad can be confusing.
What should you budget for? Is it okay to use local ATMs? What’s the exchange rate? We’ve got some tips to help you before, during, and after your trip abroad to take the stress out of overseas spending.
Things to do before you go
Get ahead of the game before you even board the plane by creating a holiday budget and figuring out the local spending habits.
Grow your spending money
An Instant Access Savings Pot helps you earn monthly interest on your travel fund, and you can access your money any time you need it.
Want to turn your morning macchiatos into an Italian holiday? If you round up your spending to the nearest pound, we’ll put the spare pennies into your Savings Pot. On average, roundups help our customers save an additional £131 extra each year.
If you’ve got Extra, Perks or Max, you can customise your roundups to save 2x, 5x or even 10x spare change every time you spend. Plans start from £3 a month and are available for UK residents aged 18+.
Get more tips for saving for a holiday.
Find out how much things cost
Before you can work out how much you’ll need, it’s helpful to familiarise yourself with local prices for things like hotels, food and taxis. That way you can set aside what you’ll need for essentials, as well as the things you’re excited to do and see while you’re there.
If you’re a foodie, you might want more spending money for restaurants, food tours or even a cooking class. Booking tickets for activities and trips in advance can be useful – that way, you know what things cost upfront, and it won’t eat into your spending money at the last minute.
With a free Monzo current account, you can create up to 20 different Pots. They help you organise your money, so you know exactly what you’ve got to spend, on what. You can even lock and hide them, so you’re not tempted to dip in. So how about a pappardelle Pot, or a bao bun budget?
Know how far you money will go
Before you pack, check what your travel money is worth in the local currency by using an online converter. This’ll help you budget better and avoid surprises when you see prices abroad. And researching the exchange rate can help you get the best value, too.
Consider exchange rates
When it comes to exchanging your currency, it’s a good idea to compare the market and shop around for the best deals before you commit to buying. Some travel companies offer foreign currency exchange at the booking stage – this can be convenient but the rates aren’t always the most competitive.
Top tip: exchange rates can be better when you’re there!
If you’re happy to arrive without cash, you could get more bang for your buck by withdrawing money on arrival from local ATMs or trusted banks. Airport vendors can be tempting and convenient if you’re looking for some fast taxi money, but they don’t usually offer the best rates. Make sure you have a plan to either exchange at home or from a local trusted bank.
Prepare for unexpected costs
Travelling isn’t always smooth sailing. Things happen that can set you back – like lost luggage or medical emergencies.
With Monzo Max, you get worldwide multi-trip insurance. This covers cancellation up to £5,000, medical bills up to £10m, lost valuables up to £750, winter sports, and a car hire excess waiver up to £3,000. You can add your family for an extra £5 a month, and they're covered even if you're not travelling together.
Tell your bank you're going away
Some banks ask you to let them know if you’re going to spend abroad so they don’t block your card for suspicious activity. You can usually do this online or via your banking app.
Monzo’s the bank made for travel, so you don’t need to worry about telling us if you’re overseas. When you make your first card transaction in your new destination, we’ll give you real time exchange rates with your instant spending notifications.
And if something feels suspicious or you lose your card when you’re travelling, you can freeze it immediately via the app. Or if your phone gets lost or stolen, log onto the Monzo web app using another device to check your account, report fraud, and freeze your card from there.
While you’re there: spending smarter
Spending in a new country isn’t always simple. Here’s how to avoid some common mistakes.
The golden rule: always pay in local currency
When you pay by card abroad, merchants might offer to charge you in your home currency, like pounds sterling. This is called Dynamic Currency Conversion (DCC) and it’s the merchant’s way of offering you an exchange rate there and then.
If you’re offered the choice of paying in your home currency or the local currency, always go local. That way you avoid the markup charges and other hidden fees that come with DCC.
Cash versus card: finding your balance
If you’re going to a country where it’s more common to use cash, think about how much you feel comfortable taking out each day, and make sure your accommodation has a safe to stash your cash while you’re exploring.
ATMs and how to use them
Need cash? Use reputable bank ATMs, and avoid standalone ATMs in tourist areas, which often charge higher fees and have worse exchange rates. And to save on fees, consider withdrawing larger amounts less often. Some UK banks charge fees for withdrawing money abroad so you should check with your bank before you go.
If Monzo is your main bank account (you get your salary paid into Monzo) you can withdraw cash for free in the European Economic Area (EEA). Outside the EEA, you can withdraw up to £200 every 30 days for free, then a 3% fee applies. Some ATMs may charge you for using them.
If you’ve got Monzo Premium, Perks or Max you’ll get unlimited fee-free withdrawals in the EEA and up to £600 every 30 days. A 3% fee applies after this.
Card spending, without the headache
Some banks charge foreign transaction fees – usually 1% to 5% on every overseas purchase. But with Monzo, you can pay anywhere in any currency, fee-free. We give you Mastercard’s exchange rate directly, with no hidden fees.
And for bigger purchases, Monzo Flex Purchase offers flexible repayments. You’ll also get Section 75 Protection on eligible Monzo Flex purchases you could get your money back on things like cancelled flights.
You’ll need a Monzo current account to apply for Flex. Flex eligibility criteria and Ts&Cs apply. UK residents & 18+ years olds only. Missed payments may negatively impact credit scores.
Keeping track of your spending with local exchange rates
Swap quick maths for beach naps. When you spend with Monzo we’ll give you the real-time exchange rate so you can see how many pounds your piña coladas cost.
Splitting costs
Splitting costs can be tricky when you travel. With Monzo Split, you can split costs with friends in seconds. Track what everyone owes throughout the holiday and settle up when it suits you. Or for one-off costs like meals, split the bill instantly.
After your trip
If you’ve got major holiday blues, then saving for your next getaway will be a top priority. Here are some things to do (after your dirty washing) that can bring your next trip closer.
Convert your leftover currency
Got foreign coins or notes left? If it’s a fair amount in a currency you’re unlikely to need again soon, you can sell it back with a currency buy back service. Like exchanging your money before travelling, you’ll need to research the best rates. If you’re not in a rush to convert straight away, it could be better to wait until rates improve.
Review your travel spending
Over-indulged, but not sure what on? Monzo’s travel report gives you a handy overview of your holiday spending – so you can figure out whether to blame the giant inflatable unicorn or endless icecreams for breaking the bank.
Chase up what you’re owed
Brits lose around £3.2 billion a year because they feel too awkward to ask for what they’re owed. If it’s time for pals to settle up, let Monzo do the hard work. Whether it’s a one-off bill or money from the whole trip, we’ll chase up payments, even if your friends don’t bank with us.
Here’s a quick look at how Monzo helps you spend smarter when you’re away:Monzo is the bank made for travel. Pay anywhere and in any currency fee-free on your debit or credit card and split bills in just a few taps. Upgrade to Monzo Max for worldwide travel insurance. Max starts from £17 a month and is available to UK residents aged 18-69. 3 months minimum. Ts&Cs apply. Insurance is provided by Zurich, powered by Qover, with a £50 excess. Exclusions apply, so check the full terms and conditions before signing up.
Plans start from £3 a month and are available for UK residents aged 18+. You’ll need a Monzo current account to apply for Flex. Monzo current account Ts&Cs apply. UK residents & 16+ year olds only. Flex eligibility criteria and Ts&Cs apply. UK residents & 18+ years olds only. Missed payments may negatively impact credit scores.