Are you making plans for a holiday abroad with your family We know that you will be confronted with a number of questions especially those related to your money.
Financial safety remains a paramount aspect while travelling, as the currency difference between India and other nations can easily eat up all savings in case of faulty planning or in case of any unforeseen situation, including a medical emergency.
Here are answers for the top financial queries that people have while planning to travel abroad.
All about foreign exchange: Arranging for foreign exchange is one of the most important steps you should take while preparing for your trip, as you need currency of the country you are visiting for your needs. “How can I get foreign exchange” and “how much money can I buy” will be among the main questions in your mind.
Foreign exchange can be acquired from any authorised dealers, which included banks and authorised money exchange centres that deal with foreign currency. A small amount of commission is applicable for the exchange. Private dealers may help in exchanging at lower costs, but it is not legally permitted. It is ideal to approach authorised money exchange centres, as they charge a lower commissions than banks. The amount of currency you should carry depends on the number of days you spend in the foreign country. Tourists are allowed to buy a maximum of foreign currency worth $10,000 in a year. The maximum limit varies according to the purpose of visit like whether it is a business trip, travel for medical treatment, education, tourism or any other. Travellers are allowed to carry foreign currency notes and coins only up to a maximum limit of $3,000. Any balance amount can be carried in the form of traveller’s cheque or a banker’s draft whichever is convenient to the traveller. These are safer too, than plain cash.
The writer is the CEO of BankBazaar.com
What is a Traveller’s cheque
A Traveller’s cheque is a safe and easy way to carry money while travelling overseas. Traveller’s cheques are available through banks and private credit unions. Traveller cheques have a unique serial number making them safe and can be blocked in case of theft. They are accepted worldwide providing, a convenient and safe way to carry money while on international travel.
Using credit cards and prepaid cards You might be wondering if you can use your credit card abroad. Or you might have heard about prepaid travel cards, but don’t know much about them.
If you own an international credit card, you can use it abroad for your expenses, as per its limits. It will also be subject to the exchange rate at that time.
Prepaid cards, as the name suggests, are preloaded cards. You can buy a prepaid card from your bank and load it with the cash you require. Conversion charges are not applicable for prepaid cards, and you can use it till the amount is exhausted.
This is a very good and convenient way for spending abroad while travelling. It also frees you from the hassles and safety concerns of carrying cash while travelling. Besides, it serves as a cap on your expenditure.
Should I buy travel insurance Travel insurance companies offer plans catering to the need of each traveller. For those travelling outside India, companies offer a dedicated overseas insurance plan, which can financially help you out in any unforeseen and unpleasant situation like medical emergencies, loss of baggage, loss due to flight delays etc.
Most travel insurance plans have a complete list of exclusions that are not covered under the policy. Any expenses towards such exclusions will have to be borne by the user from his or her pocket. Make sure to check with the travel insurance provider the details of the the exclusions in the policy. Do not leave yourself open to surprise.
How can I protect my home while I travel While it is good to get financial protection for overseas travel, what about the home and its belongings Travel insurance plans also offer home protection against theft and any such incidence allowing the traveller the peace of mind to enjoy his or her travel without having to constantly worry about the safety aspects of home and personal belongings. Make sure that the travel insurance plan you opt offers a home protection cover to make it a good and complete protection plan both for the travellers as well as essential belongings back home. Wish you a happy and safe journey!
