Pre paid card

Question

Is it best to get a prepaid travel card from a money exchange or open a new say chase /monzo type account thanks

Answer

When deciding between a prepaid travel card from a money exchange or opening a new account with a provider like Chase or Monzo, there are several factors to consider, such as fees, convenience, and what type of benefits you’re looking for during your travels. Here's a breakdown of each option:

Prepaid Travel Card (Money Exchange or Forex Service):

Prepaid travel cards are a popular choice for those who want a simple, one-time loading option for travel without worrying about spending more than they planned. These cards can be used like debit cards and are often preloaded with a specific amount of money in your chosen currency.

Pros:
- Preloaded with a set amount, making it easier to stick to your budget.
- Widely accepted at most businesses and ATMs around the world.
- Can be replaced if lost or stolen in some cases (depending on the provider).
- No need for a bank account or credit check to get one.
Cons:
- High fees for loading, withdrawing, and even for checking your balance or making a purchase.
- Exchange rates may not be as favorable compared to other options, such as using a travel-friendly account.
- Limited customer support compared to major banks or financial institutions.

Opening a New Bank Account (Chase, Monzo, or Similar):

Opening a new account with a service like Chase or Monzo can give you access to more comprehensive banking features, such as debit cards with global access, low fees for international transactions, and online tools to manage your spending.

Pros:
- Access to better exchange rates and fewer fees compared to prepaid travel cards.
- Many accounts (like Monzo) offer fee-free foreign transactions, which can be a huge advantage if you're traveling internationally.
- Online account management and mobile banking apps that let you track spending in real-time.
- Instant access to your funds in case of emergencies or unexpected expenses.
Cons:
- May require a credit check or proof of identity, which can be a hassle if you don’t already have an account with the bank.
- Not all banks offer fee-free international transactions, so you need to look at the terms carefully.
- If you don’t already have a bank account, there may be some setup time involved before you’re ready to use it.

Conclusion:

Both options have their advantages depending on your specific needs:

If you're looking for a simple, one-off solution and are okay with potentially higher fees, a prepaid travel card might be the way to go.
If you plan to travel frequently, or want the ability to easily manage your spending and access your funds in different currencies, a new bank account with a service like Monzo or Chase (which offer lower international fees) would be a better long-term choice.

Ultimately, if you're looking for flexibility, lower fees, and better customer service while traveling, I would recommend going with a travel-friendly account like Monzo or a similar service. However, if you're simply going on one trip and want a straightforward, set-it-and-forget-it option, a prepaid card could suit you just fine.