Country’s crazy withdrawal fees for Aussies

For holiday-makers, in many countries cash is still king. But taking out money in these destinations can see you burn through your holiday funds very quickly.

Country’s crazy withdrawal fees for Aussies. Picture: Wise

While many people now use a travel card while overseas, the use of cash is still very much a thing.

A lot of the countries Aussies choose to travel to are still operating in a very cash-forward society, but taking out cash from an ATM can quickly add up in the never-ending expenses while on holiday.

Wise, an online money transfer company, has now revealed the most expensive countries to withdraw cash for Aussies.

Leading the Top 20 list is Argentina at 16.04 per cent. To put this in perspective, if an Aussie was to withdraw $50 per day for seven days while on holiday in Argentina, totalling $350, they’d pay the equivalent of $56.14 in fees, according to Wise.

If they visited Fiji on the other hand and took out the same amount of cash, they’d only pay $8.78 with its rate at 2.51 per cent.

The full list of the most expensive countries to withdraw cash while travelling. Picture: Wise

Coming in second is São Tomé and Príncipe – an island nation in Central Africa – where Aussies will pay a withdrawal fee of 9.98 per cent. Iceland takes third spot at 8.88 per cent.

And if you have plans to head to Lebanon, you’re looking at 4.67 per cent on cash withdrawn from an ATM, with the country sitting in fourth place on the list, according to Wise.

Nilan Peiris, chief product officer at Wise, said when budgeting for a holiday, people tend to think about the best card to use, but don’t often consider how much extra it will cost them to use it.

On holiday it can be easy to forget the extra charges you incur using an ATM. Picture: iStock

“Hidden fees have a big impact on people’s purchasing power both domestically and abroad, so it’s important that banks put the customer first, and be transparent about how much they’re charging customers,” he said.

“If the country you’re heading to is one of the more expensive countries in our ranking, make sure you pay extra care to ATMs that might be ripping you off, and keep your hard-earned cash for some fun holiday activities.”

Top tips for travel money habits

The online money transfer company advises to ‘do your research on where to withdraw cash’. Picture: iStock

The money transfer company advised to “do your research on where to withdraw cash”.

“It may be cheapest to do this before you leave – however, it’s still best to avoid the exchange bureau at the airport,” they advised.

“Bring a multi-currency card to withdraw money with if you’re withdrawing in a foreign country.”

The company’s advice was also to check what fees your card provider charges you.

“Although most providers allow withdrawals overseas, these are usually very expensive.”

“Never withdraw money on a credit card. Fees will be very high, and you’ll be charged interest.”

If you choose to withdraw cash, Wise advises to always select the local currency.

“When you’re provided with a choice of how to pay, always go local.”