Barclays customers will soon be able to buy euros and dollars to spend using their debit card on holiday
BARCLAYS customers will soon be able to use its new "travel wallet" app to spend abroad without being stung by overseas card fees.
The app enables uses to transfer cash from their current account into a travel wallet linked to their Barclays debit card.
When using this cash on overseas spending no fees will be charged - including no interest when you withdraw cash from ATMs, which can often be costly.
If you use your Barclays debit card overseas outside of the travel wallet, for example, you'll be charged a 2.75 per cent fee - including on cash withdrawals.
Once home, you can then swap the leftover cash back into sterling without being charged any fees.
It comes as new research from the bank found that one in four (24 per cent) believe converting money back into sterling is too much hassle.
While a third (27 per cent) don’t see the point of changing back their spare cash, leaving Brits with an average of £87 worth of leftover foreign currency at home.
The downsides to the app are that you can only use it for euros and US dollars and you're bound by Barclays' exchange rate.
But Barclays will tell you the rate and how many euros or dollars you'll receive before you convert your cash.
Is now a good time to buy or sell currency?
IF you're heading off on holiday or have just arrived home and are wondering whether now's a good time to buy or sell currency. Here's what you need to know:
Exchange rates are constantly changing and can go up and down because of any number of reasons.
This means it's almost impossible to even try and time the market, all you can do is make sure you get the best deal when you buy or sell.
Buying currency
Use to compare rates if you're taking cash - it'll tell you where you can buy your cash for less.
To protect yourself against currency price changes, Money Saving Expert Martin Lewis recommends buying a bit now and a bit before you go. He said: "A simple way to guard against currency moves is buy some now, and some just before you go.
"This diminishes the impact of rate moves (good ones as well as bad)."
Also consider a specialist travel credit card, which allows you to spend money abroad without being hit by any fees or hidden charges. For more on travel credit cards you can read our guide here.
And never buy currency at the airport or other ports - it will always cost more.
Selling currency
Use Money Saving Expert's to make sure you're not ripped off.
So you can compare with other lenders before going ahead to ensure you're getting the best rate.
You'll also need an internet connection to make the conversion, so check if your mobile provider will charge roaming fees before you use it - or stick to using it only when you're connected to wifi.
The feature will automatically appear in customers’ Barclays' apps later this summer.
To use it, you just need to open your Barclays app, go to the "Cards" section under "Quick Links" and tap "Create Travel Wallet".
You then select whether you want a euro or a dollar wallet.
Once the wallet is up and running, Barclays says you can make unlimited ATM withdrawals abroad without being charged.
And Barclays has confirmed that cash saved in the travel wallet is protected by the Financial Services Compensation Scheme - so you're covered by up to £85,000 if the bank goes under.
Darren Cook, personal finance expert at comparison site Moneyfacts, believes the tool could be good for those keen to stick within a budget abroad.
He said: "This new innovative feature offered by Barclays may prove to be popular amongst holiday travellers, especially those who need to stick to a strict budget when travelling abroad.
"Knowing exactly how many dollars or euros you will receive just before you spend is a good benefit; being in control will be an advantage and stop those surprises when you have no idea what exchange rate a bank is going to use.
"But convenience may also be a disadvantage, especially when those impulse purchases arrive."
Gillean Dooney, head of current accounts and travel money at Barclays added: “The build up to a trip abroad is stressful enough without worrying about finding the time to get currency, let alone knowing how much you need to take out.
“Travel wallet means you can strike this consideration off your holiday list and simply exchange what you need, when you need it into either euros or US dollars keeping just as much control over your money when you’re abroad as you would at home.”
More on money
British tourists face a travel money "shock" on summer holidays as sterling slides to a two-year low amid Brexit uncertainty.
Meanwhile, we've rounded-up the best credit cards to use abroad revealed – from Halifax to Santander.
And here's why you should always pay in the local currency on holiday to save HUNDREDS of pounds.
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