Italy - Best method for holiday money?

[littlematchstickgirl]

Hi, going to Italy shortly. Have not travelled for quite some time.

What is the best method for holiday money these days? Cash, or prepaid card? Or something else?

My bank charges for withdrawals abroad, so would only use that method for emergencies.

Any advice greatly appreciated, thank you!

Look on money saving expert. I have a Halifax clarity card which was the best buy years ago, there are others just as good now that might be better for you. I spend on the card when I can and if I have to withdraw money I pay it off asap so I don't pay interest.

I opened a Starling bank account - they don’t charge fees, and it’s very quick and easy to set up. I tend to just take a small amount of €€ just in case, but basically everywhere takes contactless.

I use a post office top up card.

I used Revolut, I didn't take cash.

I take a small amount of local currency but for most spending I have a Chase current account. I use the debit card that comes with that for purchases and cash withdrawals from ATMs. I get 1% cashback on purchases and currently 1% interest on the balance of my account. I don’t like prepaid cards as you are effectively giving the card company an interest free loan.

From experience I have found that relying on one method of payment is a bad idea so also have a Starling debit card and a Halifax Clarity credit card as back ups. None charge for overseas transactions.

As above, just get a debit card that doesn’t charge you to use it abroad. Monzo/Revolut/Chase/Starling bank all work, and probably others as well.

Don't worry too much about the charges for either withdrawing cash or using your card outside the UK. They are a couple of percent, which is also at least what it costs to change cash money into Euros. You can pay by contactless almost everywhere.

The prepaid/fintech cards like Wise and Revolut have lower percentages (typically 0.5%), but you will need to send money to them from time to time with your online banking, and they have limits on now much you can take out.

The single biggest thing you can do is to make sure than when you use your card and it asks if you want to pay in Euros or pounds, always say Euros. Choosing pounds means the payment processor will choose the exchange rate, and it will be horrible.

Also, if you want to take cash, do not change pounds in Euros or vice versa at an airport (either end) or a hotel. Either go into a bank where you are staying, or (this was a surprise to me) try your local High Street pawn/cheque cashing shop, where they often have really good rates.

Are the charges insane with cards from the UK or something? I always remove cash when away and it's only ever a couple of euro..

I have a Chase bank account. No transaction fees and near spot exchange rates.

Thanks for the advice everyone, that's really helpful. I'm going to check those options out

We went to Rome last year and were surprised that everyone wanted to be paid in cash. It was really annoying, but I just used our normal debit card to withdraw cash from ATMs.

A surprising number of European places still want cash. I would take some euros.