When you’re getting ready for a holiday, there’s one question that’s easy to overlook:
How are you actually going to spend your money when you get there?
Should you take cash?
Use your normal debit card?
Get a dedicated travel card?
Or perhaps take a mixture of everything?
The good news is that there isn’t one answer that works for everyone.
With more UK banks now offering debit cards with no foreign transaction fees, you may not need a specialist travel card at all.
So let’s look at the different options and what you should think about before travelling.
Should you take cash abroad?
Cash is still useful when travelling.
There are places where cards aren’t accepted, and having a small amount of local currency can be incredibly handy.
Think:
- Tips
- Small shops
- Local markets
- Street food
- Taxis
- Small cafés
- Places where card payments aren’t available
Having some cash also means you’re not completely stuck if your card doesn’t work.
However, we wouldn’t recommend carrying your entire holiday spending money in cash.
If your wallet is lost or stolen, your cash is gone.
A card can usually be cancelled and replaced.
Our advice?
Take some local currency, but don’t feel like you need to carry hundreds of pounds in cash.
Using your normal debit card abroad
This is where things have changed quite a bit.
Traditionally, using your UK debit card abroad could mean paying foreign transaction fees every time you made a purchase.
But that’s not necessarily the case anymore.
Some UK banks now offer debit cards or accounts where you can spend abroad without an additional foreign transaction fee.
That can make your normal bank card a very attractive option.
Imagine you’re buying lunch for €40.
If your card charges a foreign transaction fee, you’ll pay more than the equivalent of €40.
If your account has no foreign transaction fee, you could simply pay for the meal and let your bank handle the currency conversion.
But check your bank’s terms!
This is really important.
Don’t assume your debit card is fee-free abroad just because it’s from a major bank.
Different accounts have different terms, and banks can change their charges.
Before travelling, check:
- Foreign transaction fees
- Cash withdrawal fees
- ATM charges
- Exchange rates
- Any daily or monthly limits
- Whether your account has any special overseas conditions
A quick check before you travel could save you a surprising amount of money.
Which UK debit cards are worth looking at?
There are several UK banks and accounts that can be attractive for overseas spending.
Monzo
Monzo allows customers to spend abroad without an additional foreign transaction fee, with Mastercard’s exchange rate used for card purchases.
Cash withdrawal allowances depend on your account and where you’re travelling.
Starling Bank
Starling is another popular option for overseas spending.
Its personal current account allows card spending abroad without an additional foreign transaction fee, making it a straightforward option if you want to use your everyday bank card overseas.
Nationwide
Nationwide is also worth looking at, but the specific account matters.
Some Nationwide accounts offer fee-free spending abroad, while other accounts have different charges and conditions.
For example, Nationwide’s FlexPlus account currently offers no foreign currency transaction fee for card purchases abroad.
Don’t simply assume that every Nationwide debit card is fee-free. Check your account.
What do we use ourselves?
We personally use Starling as our debit card when we’re travelling abroad.
We’ve found it really straightforward for holiday spending, and being able to use our card abroad without an additional foreign transaction fee makes things much easier.
We also like being able to keep an eye on our spending through the app while we’re away.
Of course, what works for us might not necessarily be right for you.
Your existing bank may offer similar benefits, so it’s always worth checking your own account before getting a new card.
But if you’re looking for a simple option for spending abroad, Starling is one we’d recommend looking at.
What about credit cards?
A credit card can be another useful option when travelling.
It can be particularly useful for:
- Larger purchases
- Hotel deposits
- Car hire
- A backup payment method
- Keeping holiday spending separate from your everyday account
Some UK credit cards offer no additional foreign transaction fee on purchases abroad.
But, just like debit cards, the exact card and account terms matter.
Don’t assume that because a credit card has no foreign transaction fee, everything is free.
Cash withdrawals can be treated differently and interest may apply.
And, of course, a credit card should only be used if you’re comfortable managing the repayments.
Always pay in the local currency
Here’s one of our biggest travel money tips:
When you’re paying by card abroad, choose the local currency.
It can be tempting when you’re standing at a restaurant or shop and the card machine asks:
“Would you like to pay in GBP or EUR?”
to choose pounds because you immediately know how much you’re spending.
But we’d generally recommend choosing the local currency instead.
For example, if you’re in Spain and your bill is €100:
€100 – YES
rather than allowing the machine to convert the payment into pounds.
Why?
When you choose to pay in pounds, the shop, restaurant, hotel or card machine is usually carrying out the currency conversion for you.
This is known as Dynamic Currency Conversion, or DCC.
The exchange rate used by the retailer or ATM may be less favourable than the exchange rate available through your own bank or card provider.
By choosing the local currency, you’re allowing your card provider to handle the currency conversion instead.
If your card offers competitive exchange rates and no foreign transaction fee, this can potentially save you money.
It works at ATMs too
The same thing can happen when you’re withdrawing cash.
You might put your card into an ATM abroad and see:
“Would you like to be charged in GBP?”
Again, we’d normally choose the local currency.
So if you’re in Spain and withdrawing €100:
Choose €100.
Don’t automatically choose the pound option just because it looks easier.
The ATM may be offering its own exchange rate, which may not be as competitive as the rate available through your card provider.
Our simple rule
You’re abroad → pay in the currency of the country you’re visiting.
Spain → EUR
USA → USD
Turkey → TRY
Thailand → THB
And so on.
It might seem like a small thing, but over the course of a two-week holiday, you’re likely to make lots of card payments.
Restaurants.
Drinks.
Shopping.
Excursions.
Taxis.
Ice creams.
All those little transactions can add up.
So it’s worth getting into the habit of choosing the local currency.
One important point
This isn’t a guarantee that you’ll always get the cheapest possible conversion.
Your bank or card provider will still have its own exchange rate and terms.
That’s why it’s important to check your card’s current fees and exchange-rate arrangements before travelling.
But as a general rule, we’d always look for the option to pay in the local currency rather than allowing the retailer or ATM to convert it into pounds.
Should you use a dedicated travel card?
Not necessarily.
Travel cards can still be useful.
Depending on the provider, you may be able to:
- Hold different currencies
- Exchange money before travelling
- Spend abroad
- Withdraw cash
- Track your holiday spending through an app
- Set yourself a holiday budget
For some travellers, this can be really useful.
You can decide:
“This is our holiday spending money.”
Once you’ve loaded it, you can keep an eye on how much you’re spending without dipping into your main bank account.
But if your normal debit card already gives you good overseas rates and no foreign transaction fees, you may not need another card.
Should you take more than one card?
Absolutely.
This is something we’d recommend to almost everyone travelling abroad.
Imagine you’ve got one card in your wallet.
You arrive at your hotel.
You go to pay for dinner.
Declined.
It could be your bank’s security system, a technical problem, a damaged card or something else entirely.
Suddenly, you’re trying to work out what to do.
Having a second card can make a huge difference.
Ideally, don’t keep both cards in the same place.
For example, you could keep one in your wallet and another securely in your luggage.
That way, if one is lost or stolen, you still have another payment method.
Don’t forget your banking app
Before you travel, make sure you can access your banking app.
It’s worth checking that:
- Your app is working
- You know your login details
- Your phone number is up to date
- Your bank has your correct contact details
- You know how to freeze or cancel your card
- You have a way of receiving security codes if required
And make sure your phone is protected with a PIN, passcode or biometric security.
Being able to freeze a card quickly if you lose it can be incredibly useful.
Tell your bank you’re travelling?
This depends on your bank.
Some banks no longer require you to tell them you’re travelling, while others may have specific procedures.
It’s worth checking your bank’s current guidance before you leave.
You don’t want your card blocked because your bank suddenly sees transactions from another country and thinks they’re suspicious.
Don’t forget your holiday budget
One of the benefits of using a travel card or a separate account is being able to keep track of your spending.
It’s very easy to think:
“It’s only €20.”
Then you do it ten times.
And suddenly you’ve spent €200.
Then there’s dinner.
A few drinks.
An excursion.
Ice creams for the kids.
A taxi.
Another couple of drinks…
You get the idea!
Having a clear holiday spending budget can make it much easier to enjoy yourself without worrying about what you’re spending every five minutes.
So, what’s the best way to take money abroad?
For most travellers, we’d suggest keeping it simple.
Don’t rely entirely on cash.
Don’t automatically assume you need a specialist travel card.
And don’t assume your normal debit card is free to use abroad.
Instead, check your existing bank account first.
If your bank offers no foreign transaction fees, your normal debit card could be a perfectly good option.
If it doesn’t, a dedicated travel card may save you money.
And regardless of what you choose, we’d recommend having:
💳 A main card
Your everyday debit card or travel card.
💳 A backup card
A second debit or credit card in case something goes wrong.
💶 Some local cash
Useful for smaller purchases, tips and places that don’t accept cards.
That’s it.
You don’t necessarily need a wallet stuffed full of foreign currency.
Our travel money checklist
Before you leave home, we’d recommend checking:
☑️ Does my card charge a foreign transaction fee?
☑️ What exchange rate will I receive?
☑️ Are there charges for withdrawing cash?
☑️ What are my ATM limits?
☑️ Do I have a second card?
☑️ Do I have some local currency?
☑️ Can I access my banking app abroad?
☑️ Do I know how to freeze my card?
And most importantly:
☑️ Remember to choose the local currency when paying by card.
Information checked: 11 August 2026
The card and travel-money information in this article was checked on 11 August 2026.
Bank fees, exchange rates, withdrawal limits and card benefits can change, so always check the latest terms directly with your bank or card provider before travelling.
Planning your next holiday?
At Tom & Maria Travel, we know that planning a holiday isn’t just about finding the right hotel and flights.
It’s about making the whole experience as easy and enjoyable as possible.
From choosing the right destination and accommodation to helping you understand what’s included and what you need to think about before travelling, we’re here to help.
So when you’re ready to start planning your next adventure, get in touch with Tom & Maria Travel.
We’ll help you get the holiday booked — and hopefully send you away with a few useful travel tips along the way!
Call or Message Us on WhatsApp
Tom & Maria Travel, an Independent Travel Consultant with Jamie Wake Travel.
Member of Protected Trust Services. All holidays are ATOL protected.
