Holiday money: how to make the most of your cash
Written on 27 July 2015
More than 80% of people feel they are being misled by banks when they hide their fees in the foreign exchange rates they offer, according to a new survey from TransferWise.
Consumers said they felt “tricked” and “taken advantage of” when banks claimed there were no fees for buying foreign currency but then marked up the exchange rate to cover their fees.
Hidden fees can add between 3% and 5% to the cost of buying foreign exchange says the money transfer platform service.
“It’s deeply unfair for banks to advertise foreign exchange as free to consumers when in fact they just hide their fee in the mark-up they add to the exchange rate,” said Taavet Hinrikus, co-founder of TransferWise.
The survey of 2,000 UK consumers showed:
- 83% of people felt it would be unfair for banks not to tell them of all the costs involved when they use one of their financial services
- Nearly a quarter (23%) of people are angry about allegedly being charged hidden fees by their banks
How to get the most from your travel money
There are several things you can do to keep down the cost of buying foreign currency such as not buying foreign exchange with your credit card or at the airport. For more ideas on how to make your holiday money go further, see our top 10 tips for travel money guide.
Other holiday information
You can also find out more about holiday insurance and using your mobile phone abroad in our holiday guides. And for information on what official documents you’ll need when travelling to certain countries and any health precautions you should take, see our Holiday planning: official documents and your health guide.