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.
- 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.