I just got an email from Revolut to say that they're offering the next 10,000 to sign up in Ireland a free prepaid Mastercard.
It's apparently to celebrate Revolut opening an office in Ireland. And instead of the usual €6 fee to order the first card on the account, they are going to wave this fee.
Revolut is great for anyone who travels, or who orders anything from abroad. The mobile app-based prepaid credit card offers much better exchange rates than a traditional banks, credit cards, or foreign currency exchanges.
My wife and I used the card extensively on a holiday to the USA a few months back, and must have saved about a hundred euros in currency transfer fees. I also use the card to buy things in pounds sterling from Amazon.
How much can I save?
At the time of writing, buying something from Amazon costing £50 will cost you:
- €58.07 if you choose to pay in Euros rather than Pounds at the Amazon checkout
- €57.38 if you pay with a Bank of Ireland card
- €55.81 is you pay with a Revolut card
I don't know about you, but I'd rather keep that couple of euros difference!
Changing money between different currencies can be expensive.
Traditional banks buy and sell foreign currencies from/to their customers at rates vastly different from the exchange rates you might see on the news. And while they may claim they don’t change fees, they do earn quite a bit of money by adding a mark-up to the exchange rate being offered.
There are, however, a number of disruptive financial companies emerging that can save you money. Companies like TransferWise, Revolut, and others.
- a Bank of Ireland transfer of €1,000 to a UK bank will get you £887.80.
- Using TransferWise to move the same €1,000 will get you £909.45. That’s a difference of £21.65 – or 2.5%!
- Using Revolut to transfer the €1,000 will get you £914.00. That’s a difference of £26.20 – or 3%
And as the numbers get bigger, the difference will start to matter a lot more. Move €5,000 and the difference between Bank of Ireland and Revolut is £131, so it’s definitely worth shopping around.
And if you want some cash in a foreign currency, the one thing to remember is to never ever change money at the airport. That’s where you’ll get the very worst rates. The same €1,000 converted to pounds at ICE in Dublin airport would get you just £861.
The best thing is to wait until you arrive at your destination, and then use the Revolut card to withdraw cash from an ATM. The first €200 ATM withdrawal per month doesn’t incur any fees – after that there is a 2% fee – but it’s still better value.