As one the previously posters mentioned, the 28Degrees Card is a useful adjunct to the Citi Debit Card. It is certainly a "no frills" card with no rewards/benefits, but it has no annual fee and no international transaction fees. Definitely worth putting in the bottom of your suitcase at the very least.
I am aware that more and more card operators, including 28Degrees for that matter, are now offering the ability to call them for free on Skype. I appreciate this won't suit everyone, but it is a useful option if you are concerned about calling back home.
In any case, international calls (at least out of any proper country like the US) back to Australia are more affordable now than they have ever been. You are talking cents not dollars for a call back to your card operator.
Recently I have a friend who loaded $4500 AUD (for use in Australia) but it convert to USD for no reason. If she convert back to AUD she would immediately lose $450. Currently still fighting with Virgin Money to get it back.
BTW, I also vote for Citi debit card. With the exchange rate so poor on those travel cards, even if you load now you probably would be getting something like 0.74 USD instead of 0.81.
I agree Citi can be a bit OCD and I had a few issues of card being blocked initially. After that I always call them to notify my travel until recently they say there is no need to call, and I never got it blocked. (Although I don't use my prestige as much ever since they killed the earn rate).
Also the blocking tend to happen with credit card, not debit.
If you wanted to lock in the exchange rate than your option is either buying cash or loading onto a travel card. *Travel Card* As everyone has said with Travel Cards the exchange rate can be very bad so it pays to shop around Most travel cards will have free ATM transactions but again you need to check this They may also have load fees As well as from the NAB/ANZ/CBA these are available from Velocity (poor rate but earn 2pt/$), Qantas (1.5pts/$ poor rate), Travelex, AusPost, CashPassport, KeyToTheWorld, Suncorp and probably a couple I missed.
If you are happy to go with the exchange rate of the day, the below do not charge international fees *Debit Card* Citibiank ($0) Macquarie Debit Platinum ($0 with ApplePay) NAB Platinum Debit ($10/mth but comes with Travel Insurance)
*Credit Cards that are more popular* 28degress ($0) BankWest Zero Platinum ($0 comes with Travel Insurance) ANZ Rewards Travel Adventures ($225, earn points + comes 40k Velocity bonus + free flight + 2 VA lounge passes)
*Credit Cards others* Westpac Lite ($9/mth) BankWest Platinum/World cards ($160-$270 but earn points, World cards come with international Unlimited lounge access) CBA Platinum/Diamond Amex ($249-$349 earn points, fee may be waived for certain customers, Amex only)
"Low fees on converting AUD to USD and Vice Versa."
There are none that meet this requirement. All prepaid travel cards will hit you with a margin on the exchange rate of around 4-5%
Do you want to pay a fee of 4-5% to lock in todays exchange rate? Probably not.
If you are keen, prepay your expenses now, and just wing it on the cash spending money you will be using. The impact of even a 5 cent negative shift iin the rate will be stuff all compared to total cost of the trip.
What about taking cash? I found the Forex in Sydney are often happy to negotiate the exchange rate especially if you have a couple of thousands to exchange. I found it's the most flexible way to pay while travelling.
Like everyone else around here I use a combination of 28 degrees and citi visa. I have been reading up on the new Transferwise 'Borderless Account'. It sounds promising but no card yet for Aussie consumers and a megre withdrawal limit. Something to keep an eye on though :)
Agree!!! 28 Degrees = great card: good exchange rate, no annual fee, no international transaction fees, no rewards/benefits and no rate guarantee. I have been very happy :-) plus ALWAYS transact in local currency not AUS rate if offered at point of sale (otherwise poor X rate).
Citi Debit Card = no ATM withdrawal fees charged even if the operator says otherwise, PLUS your funds are AUD so can use immediately back home without pesky pre-paid card FX fees :-)
Definitely take a couple of card options. Despite giving my bank detailed travel plans, they kept locking my card in Europe. Needed to phone them twice to be able to withdraw cash from an atm. Had some backup euros on a Travelex card (not recommended because the exchange rate they give you is terrible but at least I could get some cash.)
Buy YANK (strong conviction) or USD (not as strong conviction) on the ASX. Sell YANK or USD on the ASX. Transaction fees are $40 (less if you use a broker sign-up deal) but that works out 1% on $4000. There will be a small bonus $4 to $8 if you hold past July each year. Use your Citibank Plus Transaction Account card for your travels.
Some reasons you might not do this are a genuine opposition to the effort and paperwork, general concern having not interacted with the share market before or what is known as the mental accounting bias. The last reason is irrational though we know it results in worse financial outcomes every day.
Covvers
Covvers
Qantas - Qantas Frequent Flyer
Member since 19 Jan 2018
Total posts 64
As one the previously posters mentioned, the 28Degrees Card is a useful adjunct to the Citi Debit Card. It is certainly a "no frills" card with no rewards/benefits, but it has no annual fee and no international transaction fees. Definitely worth putting in the bottom of your suitcase at the very least.
TimOfMcDowall
TimOfMcDowall
Member since 01 Mar 2017
Total posts 10
Would you mind explaining why?
Michael Kao
Michael Kao
Qantas - Qantas Frequent Flyer
Member since 06 Nov 2014
Total posts 163
Recently I have a friend who loaded $4500 AUD (for use in Australia) but it convert to USD for no reason. If she convert back to AUD she would immediately lose $450. Currently still fighting with Virgin Money to get it back.
LP
LP
Member since 30 Jun 2016
Total posts 11
Citibank online banking lets you flag your travel plans now, so no need to call and will prevent transactions being blocked
romaau
romaau
Member since 20 Feb 2012
Total posts 2
If you wanted to lock in the exchange rate than your option is either buying cash or loading onto a travel card.
*Travel Card*
As everyone has said with Travel Cards the exchange rate can be very bad so it pays to shop around
Most travel cards will have free ATM transactions but again you need to check this
They may also have load fees
As well as from the NAB/ANZ/CBA these are available from Velocity (poor rate but earn 2pt/$), Qantas (1.5pts/$ poor rate), Travelex, AusPost, CashPassport, KeyToTheWorld, Suncorp and probably a couple I missed.
If you are happy to go with the exchange rate of the day, the below do not charge international fees
*Debit Card*
Citibiank ($0)
Macquarie Debit Platinum ($0 with ApplePay)
NAB Platinum Debit ($10/mth but comes with Travel Insurance)
*Credit Cards that are more popular*
28degress ($0)
BankWest Zero Platinum ($0 comes with Travel Insurance)
ANZ Rewards Travel Adventures ($225, earn points + comes 40k Velocity bonus + free flight + 2 VA lounge passes)
*Credit Cards others*
Westpac Lite ($9/mth)
BankWest Platinum/World cards ($160-$270 but earn points, World cards come with international Unlimited lounge access)
CBA Platinum/Diamond Amex ($249-$349 earn points, fee may be waived for certain customers, Amex only)
Blake
Blake
Member since 03 May 2017
Total posts 39
"Low fees on converting AUD to USD and Vice Versa."
There are none that meet this requirement. All prepaid travel cards will hit you with a margin on the exchange rate of around 4-5%
Do you want to pay a fee of 4-5% to lock in todays exchange rate? Probably not.
If you are keen, prepay your expenses now, and just wing it on the cash spending money you will be using. The impact of even a 5 cent negative shift iin the rate will be stuff all compared to total cost of the trip.
wanderingvan
wanderingvan
Member since 01 Feb 2018
Total posts 24
What about taking cash? I found the Forex in Sydney are often happy to negotiate the exchange rate especially if you have a couple of thousands to exchange. I found it's the most flexible way to pay while travelling.
Ozmatt
Ozmatt
Member since 04 Mar 2016
Total posts 2
Like everyone else around here I use a combination of 28 degrees and citi visa. I have been reading up on the new Transferwise 'Borderless Account'. It sounds promising but no card yet for Aussie consumers and a megre withdrawal limit. Something to keep an eye on though :)
jrezek
jrezek
Qantas - Qantas Frequent Flyer
Member since 06 May 2015
Total posts 2
Agree!!! 28 Degrees = great card: good exchange rate, no annual fee, no international transaction fees, no rewards/benefits and no rate guarantee. I have been very happy :-) plus ALWAYS transact in local currency not AUS rate if offered at point of sale (otherwise poor X rate).
DJM
DJM
Virgin Australia - Velocity Rewards
Member since 07 Jun 2017
Total posts 1
Definitely take a couple of card options. Despite giving my bank detailed travel plans, they kept locking my card in Europe. Needed to phone them twice to be able to withdraw cash from an atm. Had some backup euros on a Travelex card (not recommended because the exchange rate they give you is terrible but at least I could get some cash.)
Doubleplatinum Banned
Doubleplatinum Banned
Qantas - Qantas Frequent Flyer Platinum
Member since 07 Feb 2013
Total posts 431
Seriously? Probably the worst piece of advice you could give.
elsmicko
elsmicko
Member since 10 Nov 2016
Total posts 2
I use it, and never had an issue with it.Brilliant when combined with the app, but hey- each to their own....
Covvers
Covvers
Qantas - Qantas Frequent Flyer
Member since 19 Jan 2018
Total posts 64
I use it, and never had an issue with it.Brilliant when combined with the app, but hey- each to their own....
You’re dreaming mate. You’ve clearly drunk the Velocity cool aid.
markathome
markathome
Member since 05 Jul 2017
Total posts 11
Buy YANK (strong conviction) or USD (not as strong conviction) on the ASX. Sell YANK or USD on the ASX. Transaction fees are $40 (less if you use a broker sign-up deal) but that works out 1% on $4000. There will be a small bonus $4 to $8 if you hold past July each year. Use your Citibank Plus Transaction Account card for your travels.
Some reasons you might not do this are a genuine opposition to the effort and paperwork, general concern having not interacted with the share market before or what is known as the mental accounting bias. The last reason is irrational though we know it results in worse financial outcomes every day.