Prepaid travel cards 'ideal for gap-year students'
30 January 2012 15:33:55
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| Gap-year students should avoid carrying large amounts of foreign cash. |
An Independent reader recently wrote into the newspaper for advice on the best way to provide their son with money during his gap-year travels.
The parent was concerned that debit or credit cards may not be the safest option and felt giving him cash for different countries would be "a disaster waiting to happen".
In response, personal finance expert Liz Barclay said that a prepaid travel card "might be the answer you're looking for".
"The currency rate on these is usually better than the one offered if you use your debit card while you're away," she explained.
"Prepaid cards are typically Visa or MasterCard, so they can be used like a normal debit/ credit card wherever you see the Visa or MasterCard signs."
Ms Barclay revealed that prepaid travel cards are not tied to an individual's bank account, so their account is not at risk if the card is lost or stolen - only the money on the card itself.
"Prepaid cards are simple to top up online and some offer SMS top-up, so you can pay in emergency funds if needed," she added.
However, Ms Barclay advised people to compare prepaid travel cards, as some cards charge for overseas ATM withdrawals.
Examples of prepaid cards that do not incur overseas ATM fees include the Caxtonfx Global Traveller card, the Cashplus Fee Free Offer and the my Travel Cash Euro Prepaid MasterCard.
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