alvin: what about loaded for travel from kiwibank? I haven't used this though and thinking of getting one
I will consider one of these next time
I just got back from Oz and just reviewed my costs etc from 11 days holiday
I spent AU$4193 on my NBNZ Thoroughbred Visa. The conversion fees came to a total of NZ$102 however this is off set by the 1% cash backs earned [NZ$42] so the next difference i.e. cost to me was $NZ60
If I had used a Kiwibank loaded for travel card i.e. loaded up AU$5K that would have cost me $12 to have the card setup. I would not have earned the cash backs but would not have incurred the NZ$102 in currency fees from the 57 transactions I did
Interestingly the NBNZ's travel card in addition to the $12 setup also charges one 1.1% of the amount to be loaded ! so the Kiwibank one is better
I spent AU$4193 on my NBNZ Thoroughbred Visa. The conversion fees came to a total of NZ$102 however this is off set by the 1% cash backs earned [NZ$42] so the next difference i.e. cost to me was $NZ60
If I had used a Kiwibank loaded for travel card i.e. loaded up AU$5K that would have cost me $12 to have the card setup. I would not have earned the cash backs but would not have incurred the NZ$102 in currency fees from the 57 transactions I did
Interestingly the NBNZ's travel card in addition to the $12 setup also charges one 1.1% of the amount to be loaded ! so the Kiwibank one is better
A couple of other things to take into consideration:
- assuming you pay off your credit card in full each statement, then you can get up to 55 days interest free credit
Lets's say you have a revolving credit facility at say 5.70%, then you can leave the credit card money sitting in there for say and average of 30 days interest free (it depends on the timing of the purchase) then AUD$4193 (say NZD$5500) will save you $25 in interest
With prepaid travel cards you have to purchase the currency in advance
- with credit cards you only pay for what you spend
With cash and prepaid travel cards, you may end up with extra money and thus either hold onto it until your next trip back (assuming you do go back) or convert it back to NZD and pay the money changer a margin/fee to do so.
I spent AU$4193 on my NBNZ Thoroughbred Visa. The conversion fees came to a total of NZ$102 however this is off set by the 1% cash backs earned [NZ$42] so the next difference i.e. cost to me was $NZ60
If I had used a Kiwibank loaded for travel card i.e. loaded up AU$5K that would have cost me $12 to have the card setup. I would not have earned the cash backs but would not have incurred the NZ$102 in currency fees from the 57 transactions I did
Interestingly the NBNZ's travel card in addition to the $12 setup also charges one 1.1% of the amount to be loaded ! so the Kiwibank one is better
A couple of other things to take into consideration:
- assuming you pay off your credit card in full each statement, then you can get up to 55 days interest free credit
Lets's say you have a revolving credit facility at say 5.70%, then you can leave the credit card money sitting in there for say and average of 30 days interest free (it depends on the timing of the purchase) then AUD$4193 (say NZD$5500) will save you $25 in interest
With prepaid travel cards you have to purchase the currency in advance
- with credit cards you only pay for what you spend
With cash and prepaid travel cards, you may end up with extra money and thus either hold onto it until your next trip back (assuming you do go back) or convert it back to NZD and pay the money changer a margin/fee to do so.
Correct one should and I always do pay off credit cards before any interest is due
With the Kiwibank loaded for travel card any remaining balance is converted back with no fees except if applicable read here in some cases the exchange rate may change back in ones favor when the balance is put back to NZD [of course that would be at Kiwibank rates not the best rates available from a FX dealer etc
ajobbins: Not in NZ. Some overseas cards don't (Eg. Some of the top tier Citibank cards in the US don't)
For the past few years, I've had a National Australia Bank Gold visa card. This has no overseas conversion fees, no foreign ATM fees (though a few can add an additional charge, had that in Las Vegas) and the rates were always under 1% of xe.com's when I checked. Oh, and free travel insurance. Best card for travelling I've ever had.
The only two downsides are the $10 AUD monthly fee, which can be avoided by depositing more than $5k/month into it, and the fact that they're just about to nuke pretty much all the awesome features that made it worth having. I'll be cancelling mine soon, and hope to find something in NZ that's similar...
Doesn't look too likely, though, after reading this thread.
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