Travelling abroad? Here are the different ways to manage your money

As your vacation approaches and the excitement builds, managing your finances for international travel becomes a crucial task. From exchanging cash to using various cards, there are multiple ways to ensure you have access to funds while abroad. Here’s a comprehensive guide to the different methods of managing your money when travelling internationally

• Prepaid Forex Cards

Overview: Prepaid Forex Cards are a popular and convenient option for managing foreign currency. They provide flexibility, security, and ease of use.

Benefits:

• Multiple Currencies: Cards like the HDFC Bank ForexPlus Card can be loaded with up to 23 globally accepted currencies. This reduces the need for multiple cards and simplifies transactions.
• Security Features: Forex Cards come with features such as temporary blocking to prevent misuse, and emergency cash delivery if the card is lost or stolen. This ensures peace of mind during your travels.
• Cost Efficiency: They offer lower cross-currency charges compared to credit or debit cards, and you can shift balances between different currencies on the card.
• Insurance and Offers: Many Forex Cards come with complimentary insurance cover and exclusive travel and accommodation offers.
• Reloading: Easily reload the card online if you run short of funds.

Example: The HDFC Bank Multi Currency ForexPlus Card is particularly advantageous for its ability to handle multiple currencies, minimal fees, and emergency assistance.

• Travellers Cheques (TCs)

Overview: Although less common today, Travellers Cheques remain a safe option for carrying money abroad.

Benefits:

• Security: TCs are secure and can be replaced if lost or stolen, offering a safeguard against loss of funds.
• Ease of Replacement: They are relatively easy to replace compared to cash.

Drawbacks:

• Processing Fees: Purchasing and cashing TCs often involve processing fees.
• Acceptance: TCs are less widely accepted compared to credit or Forex cards and may require conversion to cash, which can be inconvenient.

• International Credit Cards

Overview: Using a credit card designed for international travel can be beneficial, but it's important to be aware of potential fees.

Benefits:

• No Foreign Transaction Fees: Some credit cards are specifically designed to avoid currency conversion and overseas transaction fees.
• Additional Perks: Many international credit cards offer rewards programs, travel insurance, and concierge services. For instance, the HDFC Bank Regalia First Credit Card provides complimentary airport lounge access and the ability to redeem Reward Points for air tickets.
• Protection: Offers payment protection and fraud detection services.

Drawbacks:

• Fees: Regular credit cards might charge high foreign transaction fees, which can add up quickly.

• Debit Cards

Overview: Debit cards can be used for international ATM withdrawals, often with the benefit of no additional fees.

Benefits:

• International Alliances: Many banks have global ATM alliances that allow fee-free withdrawals abroad.
• Fraud Protection: Debit cards typically offer protection against fraudulent transactions, provided that you promptly report any suspicious activity.

Drawbacks:

• Withdrawal Limits: There may be limits on how much you can withdraw at a time.
• Currency Conversion Fees: Some debit cards may still incur currency conversion fees.

Managing your money effectively while travelling abroad can make a significant difference in your travel experience. By choosing the right method or combination of methods—whether it’s a prepaid Forex card, international credit card, or debit card—you can ensure that you have access to funds when needed while minimising fees and maximising convenience. Before you head out on your trip, make sure to review your options, check for any associated fees, and prepare a checklist to keep your finances in order. With these preparations, you can focus on enjoying your holiday and making lasting memories.

Looking to apply for an HDFC Bank ForexPlus Card? Click here to get started!

*Terms & conditions apply. Forex Card approvals are at sole discretion of HDFC Bank Ltd. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.