Money and long-distance touring

[bidi]

I'm in the process of selling up and taking off for five years cycling around the world. Does anyone have any advice on the best way to arrange my finances whilst touring? I'll need a bank account that I can get access to online from anywhere with WiFi. And presumably a debit card for ATM withdrawals. Any suggestions on the best bank? Or is there another/better way to organise things? How do others organise their money during extended tours?

[takeonafrica]

You'll want a bank account that charges nothing/minimal amounts for cash withdrawals abroad. (Someone I know mentioned Metrobank doesn't charge, not sure about others, except Lloyds bank are rubbish!)
Debit card for ATM/cash withdrawals. Visa is most widely available. Maybe take a Mastercard as well as a backup. A credit card for emergency use is good if you have one.
Probably best to have a current account (that you withdraw money from) and a linked savings account where you keep most of your money. Then use internet banking to transfer to current account. That way, if a card is stolen and used, there's a limited amount at risk.

Travellers cheques seem less and less useful these days (but I always carry some and hide away - they may come in handy if everything else gets nicked/lost). The alternative is one of those cash cards - but you still need to find a bank that will accept it.

I usually carry an old expired credit card in my wallet with a small amount of cash (and keep everything else safely stashed away) - that way, if my wallet is stolen then I don't lose anything useful...

[bidi]

Thanks for the great tips and advice. Much appreciated.

[TonyR]

I would add have several different credit cards/cash cards you can use. Its not unusual to find your card company has cut it off because of transactions in dodgy looking places. Having other cards you can use when that happens until you get a chance to Skype the card company and get the card back in use is very useful

I generally just get cash as I go out of the local ATM. Not had any problem apart from the card company hair trigger finger above. I beleive Nationwide do a good low charge card service but when comparing cards look at their exchange rates as well as the headline offers. Zero commission exchange offers are usually accompagnied by poor exchange rates.

Even though Visa and others say these days that you don't need to phone up and let them know where you are going, phone them up, let them know where you are going and insist on a note on your file about it.

Good luck and enjoy.

[rualexander]

Not sure what the situation is nowadays, but American Express used to be a good card to have for travelling.
The standard card is not a credit card but a charge card, there is an annual fee, but no interest charges and you can't spend more than you have.
They used to have a large network of offices in countries all over the world that was useful for getting mail sent to, etc.
Probably a bit antiquated these days but maybe worth a look anyway.

[foxyrider]

Lots of shops no longer take AMEX - just a word of caution.

[simonhill]

Searching for lowest charges is a good idea, but Banks have a habit of giving low or no charges, then upping them when they have enough punters. This happened with the Nationwide Flexaccount and debit card. Note, it is the charges that vary, the actual exchange rate is usually set by the overarching provider eg VISA or Mastercard.

There are some 'enhanced' accounts that give free withdrawals, eg a new Nationwide a/c, but I think it costs £10 per month so you will have to work out if it is a good deal.

When going away (only about 3 months) I normally start out with £ cash for the first £300 or so (that is about how much cash I risk), then it is the ATM card. Each country is different and part of the 'joy' of travelling is working out each country's foibles, eg some have very low withdrawal limits, some charge per transaction, some a percentage.

As far as I am aware, the banks don't stop ATM (pin) cash withdrawals, wherever they are. This only happens with cards when you use them 'manually' eg over the counter (shops, hotels, etc). I have known credit cards being stopped even though you have informed them you are in that country.

A single bank with linked saving a/c is a good idea. Being able to easily show your savings is also useful as some countries want proof of enough money before they issue visas or do renewals. A credit card is useful for paying for online stuff eg airfares.

My advice would be:
Get an online bank account with savings account, then a Visa debit card and a Visa credit card. if these are all linked then you can transfer money easily. If they are with different banks then sometimes you need card readers or mobile phones to generate access codes to move money out of your bank. A second different (eg Mastercard) credit card is useful as a back up, but you have to have a strategy for paying it. I would then normally use cash withdrawn from ATM. if you are travelling on a budget it is unlikely that you will have too many opportunities for credit cards and cash should almost always cover your needs. Also hide a bit of cash about body, bag and bike, plus a few TCs if you feel the need.

Also remember that for most British bank a/cs (I think) you need to be resident in UK, so maybe don't tell them you will be away for 5 years.

As I said I use Nationwide because they suit my needs, now they charge for withdrawals abroad there may be a better or cheaper option available now.

[kuba]

My Halifax Clarity Mastercard has been brilliant for traveling, no fees for foreign transactions at all, including cashpoint withdrawals, and excellent exchange rates (which are dictated by Mastercard and the spread on most currencies is next to nothing). One thing is that cash withdrawals accrue interest from the date of transaction, so it's best to replay it right away via online banking. Overall, after two months in Indian Himalaya, I had maybe a couple of quid interest to pay - still way cheaper than exchanging cash, let alone traveler cheques, debit cards etc.

But beware of internet cafes for online banking or credit card payments, far better to carry a smartphone in my experience.

[mercalia]

on another matter make sure you have made a will

[mnichols]

I use a Post Office credit card when travelliing due to the low costs when using abroad. It can also be managed via the internet. I take one MasterCard, one Visa and a debit card. I swap one card with a friend in case one of us is mugged or robbed and keep all three in different places. I also keep a photo of my cards, passport and driving license on my phone linked to dropbox which can be accessed via an internet terminal if I lose my phone. I separate my cash in the same way, and keep an emergency tenner in the seat post.

[hufty]

on another matter make sure you have made a will

A good idea in itself, probably more important for those of us not packing it all in and cycling off for five years away from the overcrowded roads of Britain. The most dangerous place I've cycled is Manchester, the most hostile locals I've encountered were in Rochdale.

I agree totally about the main worry being the bank stopping your card when there is no need, a good defensive strategy might be to have two internet current accounts with different banks in case cards expire on one or the bank changes the login procedure and you don't get the letter. A preloaded debit card might be another option - not particularly to save on transaction costs but because the assumption is that you are going to use it in different countries.

A good place to research travel money is moneysavingexpert.com.

[Barrenfluffit]

Cash cards Like caxton FX are good in that they expect them to be used abroad and you transfer on to them finite amounts from your phone or via their website (and your debit card). Also if the card is stolen or lost consider what your going to do; I think caxton send one to you. That said I'm not sure what happens in currencies other than £, $ or e. Saving accounts are barely worth having these days. But certainly having multiple cards makes sense.

[thirdcrank]

I speak as somebody who has had to look after things back at the ranch.

One thing to consider is appointing somebody you trust as your attorney. Basically, you give them a properly completed document which allows them to do things on your behalf such as sell things. As an example, when one of my sons went on a trip round the world he unexpectedly needed to sell some unit trusts for extra funds. He'd followed my advice about giving me power of attorney and it went through without a problem. Unfortunately, this subject is confused with what used to be Enduring Powers of Attorney and are now Lasting Powers of Attorney, which are for when somebody no longer has the capacity to manage their own affairs, which involves safeguards to prevent exploitation of vulnerable people, so I've not found an explanation on line by googling. The word "attorney" in this context does not refer to a lawyer. The power I'm talking about can be restricted to doing certain things or more general. Unfortunately, not all bank staff etc., have much idea about the subject, which is probably not surprising.

One of my sons lost his wallet in Australia and did an ET at lunchtime local time, "What time do you call this?" in the UK. The bank cancelled his cards but would only send replacements to his account address ie here. After that, we found the easiest thing to do was to have a Nationwide Visa account in my name with him as additional cardholder.

Over the years, I've found Western Union the best for sending funds to somebody on the move, especially if the request is at short notice. Not particularly cheap but but totally reliable IME. They also seem to have plenty of agencies everywhere.

[bohrsatom]

Just a note about Metro Bank. They currently offer a VISA card with commission-free FX transactions but today I received a letter saying that it is soon to change to be EU-only and there will be a charge for transactions outside of the EU.

I used to have a Caxton FX card, then switched to Metro Bank as it is easier (and free) to get unspent money back but Caxton might just be better for a worldwide tour.

[andymiller]

Check out moneysavingexpert.com they have a travel money section with advice on the best credit cards.

It's a good idea to get a credit card that offers a competitive exchange rate and set it up so that you have a direct debit that automatically pays the whole balance at the end of the month,

But this only solves half the problem as you need cash and SFAIK all credit cards start charging interest the day you make a withdrawal.

I have a euro currency card from fairfx.com (others include caxtonfx.com). There's a small charge for the card, plus a charge of €1.50 for cash withdrawals. They do a dollar card with similar charges. They also do an 'Anywhere card' - but from what I can see from their site this charges 1.4% for transactions - which I think makes it more expensive than a normal credit card, but I could be wrong on that.

I have a spare Friends and Family card which I keep separate from my main card. So if I lose my main card I can transfer funds from that to the reserve card.