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MMMondayMemo: The Local Currency Trick
Each Monday Miles has decided to drop a tip, hint, tutorial, trick that maybe you’ve missed or haven’t heard before. If you’re an expert in this field, some of these may be things you already know, but there are a lot of beginners out there who are just getting their feet wet. This week the Monkey Miles Monday Memo focuses on Foreign Exchange rates, and using it to your advantage. The Local Currency Trick can save you some bucks and keep ultimately keep things simpler when traveling abroad.
The Local Currency Trick, example #1: Use ATMs while traveling abroad
Not so long ago you needed to travel with traveler’s checques. Those bad boys safeguarded you from worst case scenarios if your cash was stolen. Now, there really isn’t a reason to buy them because most every bank has relationships abroad to use ATMs. You can take out as much cash as you need, as you go, and the banks will have superior exchange rates between themselves than you could get at local currency exchange shop. You also save yourself the trouble of having to carry a bulk amount of cash/traveler’s checques and the stress that comes with it. Additionally, if you carry Private Client status, or the like, with your mother bank you may also get all your atm fees waived when using them abroad. By using Atms you’ll get a better exchange rate and save yourself the stress of carrying a lot of cash.
The Local Currency Trick, example #2: – Hotel exchange rates
Hotel exchange rates are often terrible. I was just recently hanging out at the Intercontinental Park Lane in London and noticed that the exchange rate at the hotel is $1.43/pound. WHAT?! That is ridiculous. USE THE ATM! Even with a fee, you’ll come out ahead.
At check out
Hotels will often ask if you’d like to pay in the local currency or they could charge you in your currency. NEVER pay in your home currency. The best float rate you’ll get is with your credit card. The bulk volume affords them the most competitive exchange rate and you can use that to your advantage. I mean, look at the above situation – My credit card won’t get exactly $1.29 per pound, but it’ll be roughly $1.30 vs the $1.43 the hotel would have charged me for the “convenience” of paying in dollars.
The Local Currency Trick, example #3: Search as if you’re in your destination country
Last year I booked an Around the World trip that had me traveling through the Middle East, South Africa, and Asia. When I was looking into flight to get from South Africa to Tokyo I noticed that the fares on the ITA MATRIX were significantly cheaper priced in ZAR ( South African Rand) than they were in dollars. What I ultimately realized was if I searched my Cathay Pacific Business Class flights from the South African site rather than the US site it priced the tickets a couple grand cheaper. When I went to pay I entered all of my US information and bought the tickets. Often times Companies will have incentives for travel depending on where you are purchasing the fare vs the itinerary. Use this to your advantage!
Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities.
Chase Sapphire Preferred® Card
Welcome Offer
Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening.
Annual Fee
$95
Points Earned
Transferrable Chase Ultimate Rewards
- 5x on all travel purchased through Chase Travel℠
- 3x on dining, including eligible delivery services for takeout & dining out
- 3x on select streaming services
- 3x on online grocery purchases
- (excluding Target, Walmart and wholesale clubs)
- $50 Annual Chase Travel Hotel Credit via Chase Travel℠
- The begins immediately for new cardmembers and after your account anniversary for existing cardmembers
- 2x on all other travel
- 10% Anniversary Bonus
- Every year you keep the card, your total spend will yield a 10% points bonus. If you spend $10k in a year, you’ll get 1k bonus points
- Chase Sapphire Preferred continues to redeem at 1.25c in the Chase Travel℠ and the slew of other benefits remain in tact including Auto Rental Collision Damage Waiver ( primary ), purchase protections, etc.
- Points are transferrable to 14 Ultimate Rewards partners
- Redeem in Chase Travel℠ for 1.25 cents per point
- No foreign transaction fees
- Suite of Travel and Purchase Coverage
- Auto Rental Collision Damage Waiver is my favorite
- Get complimentary access to DashPass which unlocks $0 delivery fees and lower service fees for a minimum of one year when you activate by December 31, 2027.
- $95 Annual Fee
We keep an up to date spreadsheet that lists the best ever offers: You can find that spreadsheet here.
Historically 80k is a very, very good offer and hit in both 2022 and 2023. In 2021, we saw the offer hit an all time high of 100k. Who knows if that will ever come back.
Main Cast:
Cards that earn flexible points and should be used on the bulk of your purchases.
Supporting Cast:
Cards that earn fixed points in the currency of the airline/hotel and can not be transferred at attractive rates. These cards yield benefits that make it worth keeping, but not necessarily worth putting a lot of your everyday spend on.
The Chase Sapphire Preferred® is exceptional starter card and offers transferrable Ultimate Rewards, and pairs well with other Chase cards.
If you carry this card alongside Chase’s cashback cards like the Chase Freedom Flex® and Chase Freedom Unlimited® or the business versions: Ink Business Cash® , Ink Business Unlimited® you can combine the points into Preferred account and transfer into hotel and airline partners
Annual fee is quite low at $95 a year + you get a 10% anniversary bonus on points + $50 hotel credit in Chase travel.
The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved, or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.