Your financial checklist before travelling abroad

As the holiday season approaches and more countries continue to lift travel restrictions to reopen the global economy, many South Africans may be planning their next international holiday.

However, given the logistics involved in an international trip, extensive planning and preparation are required to avoid a failed trip and excessive spending.

“There are several financial considerations that travellers need to keep in mind from an offshore spend perspective, including individual allowances that SA residents need to comply with from an exchange control perspective,” said Chantal Robertson, head of cross-border advice at FNB.

Expanding on this further, Robertson provides a helpful checklist you need to tick to ensure that your trip abroad is hassle-free and within budget:

Ensure that you take up some travel insurance cover

Travel insurance covers medical emergencies during your travel, including the cost of medical treatment up to a certain limit, whether for a medical condition or an accident.

It also covers trip disruptions, such as cancellation or curtailment of the trip due to any reason and covers booking cancellations by you or the tour company.

Beware of withdrawal fees when drawing cash

There is a withdrawal fee (for example €4 for withdrawals in Europe), but using a global account debit card is a more secure means of making purchases, therefore, it is advised that cash be withdrawn using this card at an international ATM only when necessary (in the case where bank cards aren’t accepted).

In addition, global accounts will be launching its very own virtual card come this November.

Offering additional security, customers will be able to add a USD, EUR and GBP global virtual card to their physical global debit card at no additional cost.

Like the global debit card, these virtual cards can be added to third-party digital wallets such as Google Wallet, Samsung Pay and Apple Pay.

Use your global account card for international card transactions

Swiping with a local credit or debit card sees an additional 2% currency conversion rate.

However, when using a global debit card there’s no conversion rate at all if you’re using it in the currency of the country.

The single discretionary allowance (SDA) covers all personal foreign payments and transfers, including travel, gifting and foreign investment.

It is important to remember that any purchase using your local debit or credit card while you are travelling is also allocated to the SDA.

These limits are reported and controlled at an individual level, based on identity number.

In terms of the current rules, SA resident individuals (18 years and older) are entitled to the following:

• R1m annual SDA

• R10m annual foreign investment allowance, subject to a tax clearance

Supplied by FNB