Working out the best way to take money abroad can save you a surprising amount, as fees and poor exchange rates quietly eat into your holiday budget. The truth is there is no single best method; a sensible mix usually wins. This guide explains the best ways to take money abroad and how to choose. It is general information, not financial advice, so compare current options and check the fees before deciding what suits your trip.
There is no single best way
The first thing to understand is that no one method is best for everyone, as the right choice depends on your destination, how you spend, and your priorities around convenience, cost and security. Most experienced travellers use a combination rather than relying on a single option. Understanding that the best approach is usually a sensible mix, tailored to your trip, rather than one perfect method, frees you from looking for a single answer and helps you build the right combination for your circumstances.
Cash
Cash is the traditional way to take money abroad, useful for small purchases, tips, markets, and places that do not take cards, and it helps you keep track of spending. The downsides are the risk of loss or theft, the need to exchange it at a good rate, and carrying it safely. Our guide on cash versus card abroad compares them. Taking some cash is sensible almost everywhere, but relying on cash alone carries security risks and means exchanging money, so it is usually one part of the mix.
Debit and credit cards
Debit and credit cards are convenient and widely accepted, letting you pay and withdraw cash abroad, but the fees vary hugely between cards, with some charging non-sterling transaction fees and others fee-free. Credit cards can offer purchase protection. Our guide on using your cards abroad explains the detail. Knowing your own cards' fees for spending and withdrawing abroad is essential, as the wrong card can cost you on every transaction, while a fee-free card can be one of the cheapest ways to spend abroad.
Travel money and prepaid cards
Travel money cards, or prepaid cards, let you load money, often in a chosen currency, and spend or withdraw abroad, typically with competitive rates and controlled spending, as you can only spend what you load. They are popular for budgeting and avoiding fees. Our guide on the best prepaid travel cards covers what to look for. A prepaid travel card can be a useful, secure and cost-effective part of your travel money mix, particularly for keeping spending under control and getting good rates.
The mix approach
The smartest approach for most travellers is a mix: some cash for small purchases and emergencies, a fee-free card or prepaid card for most spending and withdrawals, and a backup card kept separately. This balances convenience, cost and security, and means a lost card or empty wallet does not leave you stranded. Combining methods so you have a low-cost way to spend, some cash, and a backup gives you flexibility and resilience, which is why a mix usually serves travellers better than any single option.
Exchange rates and fees matter
Whatever you use, exchange rates and fees make a big difference to how much your money is worth abroad. A poor rate or hidden fees can quietly cost you a significant amount over a holiday. Our guide on getting the best exchange rate and on avoiding hidden fees explain how. Paying attention to the rates and fees on whichever methods you use, rather than ignoring them, is one of the most effective ways to make your holiday money go further.
Security
Security is an important consideration. Cash cannot be replaced if lost or stolen, while cards can be cancelled and replaced, so spreading your money across methods and keeping backups separately reduces the risk of being left with nothing. Use hotel safes and money belts where appropriate. Thinking about security, and not keeping all your money in one place or form, protects you against the loss or theft that can otherwise ruin a trip, which is another reason a mix of methods is wise.
How much cash to take
Decide how much cash to take based on your destination and how card-friendly it is, taking enough for small purchases, tips and emergencies but not so much that loss would be disastrous. Some destinations are very card-friendly, others more cash-reliant. Our guide on how much spending money you need helps. Carrying a sensible amount of cash for your destination, topped up with card spending, balances the convenience of cash against the risk of carrying too much.
Always have a backup
Always have a backup way to access money, such as a second card kept separately from your main one, so that a lost or stolen card, or a card problem, does not leave you stuck. Keep emergency contacts for your card providers too. Our guide on getting emergency cash abroad covers worst cases. Having a backup, stored apart from your primary money, is a simple precaution that can save a holiday if your main card or cash is lost, so it is well worth arranging.
How to decide
To decide your approach, consider your destination's card-friendliness, your spending habits, and your priorities around cost, convenience and security, then build a mix: a low-fee card for most spending, some cash, and a backup. Compare the rates and fees of your options. There is no universal best method, only the right combination for your trip. Tailoring your travel money to how and where you will spend, with cost and security in mind, leads to the best approach for you.
Tell your bank you are travelling
Before you go, it can be worth letting your bank or card providers know you are travelling, or checking whether they need to be told, as foreign transactions can sometimes trigger security blocks on a card. Some providers no longer require notice, but checking avoids a card being frozen abroad. Making sure your cards will work where you are going, and knowing your providers' overseas contact numbers, helps prevent the unwelcome surprise of a blocked card and ensures you can access your money throughout your trip.
Keep your money safe
However you take your money, keep it safe while away by not carrying all of it at once, using a hotel safe for spare cash and cards, keeping a backup separately, and being alert to pickpockets in busy areas. Our guide on what to do if your card is lost or stolen abroad covers the worst case. Taking sensible precautions to protect your cash and cards, and spreading them rather than keeping everything together, greatly reduces the chance and impact of loss or theft on holiday.
In short
There is no single best way to take money abroad; a sensible mix usually wins, combining some cash for small purchases and emergencies, a fee-free or prepaid card for most spending and withdrawals, and a backup card kept separately. Pay attention to exchange rates and fees, which make a real difference, and think about security and how much cash your destination needs. This is general information, not financial advice, so compare current options and check the fees.
Explore more in our Travel Money guides.