Buying Pound's for UK Trip?

[amshaw]

G'Day All,

Just wondering if any members are into the stock market or banking etc etc.

We are flying out to the UK in mid Aug for a month. We paln to take 1,000 pound cash with us, but not sure when to buy them.

Ive been told to buy now but Im just not really sure as I have no idea how much the market go's up and dowm within a 6 mth period.

My gut feeling is to buy now and get it sorted as the Aussie $ can only come down in value.....As I see it anyway ;).

Any thoughts please??

Cheers
Andrew

[Andrew D]

Andrew

If you can avoid buying currency this is the best option. You will loose more money in this transaction. If you need a bit of loose change ($1000 AUD) fair enough but my preference for going overseas is to just slap it on the plastic and just take the fees resulting from the bank (obviously you'll need to check these out but tend to be reasonable, pretty sure I paid roughly $12 for a $800 transaction). It still works out cheaper than trying to be a part time currency trader.

My advice is to use the plastic where possible (VISA).

Regards
Andrew

[wayneg]

Are you going to Visit Friends, relatives in the UK?
If so and you can get money into one of their bank accounts the best option by far is to use a forex service. This might sound a bit daunting however it is very easy. You need to set up an account, I use ozforex.com . Once you have set this up with the receiving bank details you can get live rates and decide when to hit the button. The money gets transferred in a day plus is changed to whatever currency you want ( Pounds). The cost is A$15 but the exchange rate is almost the same as the banks get themselves so you will save a packet.

The Oz $ is high partly because our interest rates are high compared to the UK`s .5%. Your guess if the rates will change, If the Oz rate goes up so will the exchange rate.

[decibelcore]

Are you going to Visit Friends, relatives in the UK?
If so and you can get money into one of their bank accounts the best option by far is to use a forex service. This might sound a bit daunting however it is very easy. You need to set up an account, I use ozforex.com . Once you have set this up with the receiving bank details you can get live rates and decide when to hit the button. The money gets transferred in a day plus is changed to whatever currency you want ( Pounds). The cost is A$15 but the exchange rate is almost the same as the banks get themselves so you will save a packet.

The Oz $ is high partly because our interest rates are high compared to the UK`s .5%. Your guess if the rates will change, If the Oz rate goes up so will the exchange rate.

I agree with wayneg

[SuperMono]

I gave up years ago trying to guess the movements in currency. Might now try over a few days or weeks maybe, but not over 6 months.
I travel O/S on a regular basis and generally avoid cash wherever possible. When I do need cash I grab some from an ATM. You could get something like a Visa debit card and use that in the ATM, or go for one of the Forex (Visa or similar) cards you can grab from Travelex or some travel agencies.
We did the Visa bit for our daughter when she was on an O/S exchange a couple of years ago, worked fine.

[Ace]

Not sure what the exchange rate is right now but buying when the exchange rate is 65 pents to the australian dollar is better than when its been 50pents to the dollar.

If thats the case 1000 pounds would cost you alot less if $1 buys 65 pents as opposed to when its 50pents. $1000 would buy 650 pounds as opposed to 500 pounds. Surely there cant be 150 pounds in fees. The dollar could crash between now and august.

If at all concerned hedge your bets and buy some of it now and the rest when you need it.

[amshaw]

Thanks all for the input.

I like the idea of the visa card, and Marie is going to ask re charges for each withdrawnal.

As Im a keen collector of any Fire Fighting related item we hope to get to as many swap meets and fairs as possible, so I thought the cash would be handy, but not so good carrying it around all day everyday looking over my shoulder, so I might get say 200 pound to get us started then just use the card when needed and to withdraw cash to keep it up to the 200 pound mark in cash between us, also look into transfur some money into a familys members account aswell......

We are staying with family and friends the whole trip so dont need money to pay for motels etc, just day to day stuff and pay for food while there etc etc.

I guess when we go to London I will just get a bit more out as we plan to do alot and we are planning on everything in London to be expencive

Still happy to hear any advice though, thanks guys....:)

Regards Andrew

[jerryd]

When you go to London be aware that there are pickpockets everywhere you turn :eek: I'd get a money belt or similar and tell the wife to keep a firm grip on her handbag.

As an example I was in a shop queue one evening, buying dinner after a hard days work.When I got to the till and pulled my wallet out of my pocket, hey presto all the cash had been taken out and my wallet put back in my pocket upside down. I knew it was the sweet looking girl behind me but how do you prove it :confused: Happened to me on three different occasions unfortunately.

[amshaw]

When you go to London be aware that there are pickpockets everywhere you turn :eek: I'd get a money belt or similar and tell the wife to keep a firm grip on her handbag.

As an example I was in a shop queue one evening, buying dinner after a hard days work.When I got to the till and pulled my wallet out of my pocket, hey presto all the cash had been taken out and my wallet put back in my pocket upside down. I knew it was the sweet looking girl behind me but how do you prove it :confused: Happened to me on three different occasions unfortunately.

Bloody hell, didnt think it would be that bad :angel: I think of pickpockets from the movies set in 1800's etc, I thought teenages would be to lazy to learn a skill........yes I know, can be anybody not just kids....:p

Still looking forward to the trip though...........

[Disco44]

When you go to London be aware that there are pickpockets everywhere you turn :eek: I'd get a money belt or similar and tell the wife to keep a firm grip on her handbag.

As an example I was in a shop queue one evening, buying dinner after a hard days work.When I got to the till and pulled my wallet out of my pocket, hey presto all the cash had been taken out and my wallet put back in my pocket upside down. I knew it was the sweet looking girl behind me but how do you prove it :confused: Happened to me on three different occasions unfortunately.

I got done in the tube.Now I wear a folder that fits under my shirt and singlet next to the skin under a arm pit.Also it is good advice to copy the card contents that are in it and have it somewhere like your computer with the relative phone numbers to call if any of the cards are lost or stolen.

[LSD_AUTOMOTIVE]

Just a few tips...rambling a little because I'm tired! Sorry if you already know any of this :)

Foreign cash is cheaper than using your ATM card interest rate wise...the rates generally are not as favourable on plastic. At most banks you pay in the transaction (i.e the conversion rate) and then a percentage fee for completing the transaction.

You will also pay a fee for checking your balance.
Another fee if you withdraw cash.
And of course interest if you use the bank's money.
The same fees apply to cash passports like travelex prepaid cards just without the conversion rates.

If you plan to use your card in the UK make sure you have a card with a chip - many places in the UK and Europe do not accept cards without chips now. Also make sure you tell the bank you are going overseas so that your card doesn't get blocked.

There are accounts that avoid fees. NAB has an account called 'Gold Banking' - it is a flat $10 fee per month but it waives the conversion fee and overseas transaction fee. You get a gold visa debit with chip - it works like a credit card or a normal atm card, whatever you need. But in this case you would be risking the exchange rate dropping because it will convert as you spend (the same as a credit card)

Historically speaking the current rates are excellent. Though you will probably only get around .60 at a bank it's still a whole lot better than .45!

If you spent 1000 GBP on plastic you would be looking at a bank fee of 2.0 - 2.5% of the local amount typically...so say $35? provided you don't withdraw cash - that makes it expensive. Some banks will exchange for $10 or 1.1% ...$19 or so (assuming .60 for exchange) - because there isn't a huge amount in it I would go for comfort over anything else.
You can see what the base rates on a visa is here...I'll bet there is a mastercard one somewhere
http://corporate.visa.com/pd/consumer_services/consumer_ex_results.jsp (http://corporate.visa.com/pd/consumer_services/consumer_ex_results.jsp)

Personally I would have plastic as a back up (eg. you need to book emergency accommodation or new flights and get reimbursed by insurance afterwards) and take cash. Only carry what you need for that day and keep the rest safely at 'home'

[sashadidi]

In New Zealand, we have a card that you load pounds etc onto and use overseas, we you load the pounds you get it at the exchange rate of the day and so cannot vary especially if the rate moves against you

Her is the New Zealand version, of course it still has fees
National Bank | Travel Card (http://www.mytravelcard.co.nz/)

[LSD_AUTOMOTIVE]

In New Zealand, we have a card that you load pounds etc onto and use overseas, we you load the pounds you get it at the exchange rate of the day and so cannot vary especially if the rate moves against you

Her is the New Zealand version, of course it still has fees
National Bank | Travel Card (http://www.mytravelcard.co.nz/)

Yes - here you can get travelex cash passports. You load it and fix the conversion rate, pay an establishment fee. Then pay per transaction when you withdraw the funds :)

Cash Passport from Travelex, the convenient, secure way to carry and access foreign currency overseas. | Cash Passport from Travelex, the convenient, secure way to carry and access foreign currency overseas. (http://www.cashpassport.com/1/en/au/)

The banks, post office etc offer them

[frantic]

If your going to get pounds in Oz we found the best place to do from all the options it was the credit union(we used cua/city coast) as the banks charged much more and offered a worse conversion rate so they stung you in both directions.
Keep the majority in a money belt but ensure you keep a small amount in your wallet/ partners purse because if they do get your wallet/purse and find nothing they may come back for the money belt they now KNOW you are wearing.;)

[Hoges]

When you go to London be aware that there are pickpockets everywhere you turn :eek: I'd get a money belt or similar and tell the wife to keep a firm grip on her handbag.

As an example I was in a shop queue one evening, buying dinner after a hard days work.When I got to the till and pulled my wallet out of my pocket, hey presto all the cash had been taken out and my wallet put back in my pocket upside down. I knew it was the sweet looking girl behind me but how do you prove it :confused: Happened to me on three different occasions unfortunately.

Same girl? :p:wasntme:

[mikehzz]

We use a Westpac Earth card and just withdraw at auto banks. There aren't the usual conversion fees with it, just the normal use another atm fee of around $2. I don't like carrying a lot of cash especially o/s.

[markyc]

Andrew,
I lived in London (Brixton/Camberwell) for three years and never came across a pickpocket, nor knew anyone who did... they're out there alright but not on every corner!
Cheers!

[strangy]

Thanks all for the input.

I like the idea of the visa card, and Marie is going to ask re charges for each withdrawnal.

As Im a keen collector of any Fire Fighting related item we hope to get to as many swap meets and fairs as possible, so I thought the cash would be handy, but not so good carrying it around all day everyday looking over my shoulder, so I might get say 200 pound to get us started then just use the card when needed and to withdraw cash to keep it up to the 200 pound mark in cash between us, also look into transfur some money into a familys members account aswell......

We are staying with family and friends the whole trip so dont need money to pay for motels etc, just day to day stuff and pay for food while there etc etc.

I guess when we go to London I will just get a bit more out as we plan to do alot and we are planning on everything in London to be expencive

Still happy to hear any advice though, thanks guys....:)

Regards Andrew

Just recently went to Italy and Switzerland. I used a "Clear Advantage Mastercard" This has no transaction fees in Aust at WestPac ATMs and no exchange rate fees in most parts of the world. Unlike some of the Major Banks "travel card" etc.

I know it doesnt solve the exchange rate dillema, but when I made a withdrawal, the ATM fees were the same as in Oz $2 - $3 AUD and there were no other exchange fees. This meant my work colleague who was using a "travel Card" from ("which bank?) paid nearly $120 more than me for the same number of transactions over a week.

cheers

[amshaw]

Thanks to all for info & tips. ;)

Marie has bought a really sweet little cash bag thing with carbon fibre and steel strands.........

Ive had a rethink re cash, will get some but only 50-100 pounds between us........will sort the rest out when I get a chance.......