Here’s how you can buy and keep foreign currencies for your future holidays without queueing at the money changers
With COVID-19 fanning recession fears in the world economy, currencies of many of Singapore’s favourite holiday destinations have tumbled to historic lows. On 19 March 2020, one Australian Dollar was trading at S$0.801, one New Zealand Dollar at S$0.796, and one British Pound at S$1.661.
Screenshots from XE.com
These are great rates that are really tempting, especially for those who are looking to travel to these countries when it's safe to do so, or simply want to online shop. We also did a quick summary of where these currencies were just a month ago.
Change and Store Foreign Currencies with Multi-Currency Accounts
If you’re a frequent traveller, you would probably have heard of multi-currency accounts that allow you to store different foreign currencies. They also allow you to enjoy exchange rates that are on par or even better than those at your favourite money changers in Change Alley or Chinatown. This means that you need not go around from one money changer to the other asking for their best rates or carry around large amounts of cash while travelling.
There will also be no additional foreign exchange conversion fees or additional administrative fees when spending through Mastercard or Visa card linked to your multi-currency account of choice. This is unlike credit cards that charge up to 3% in credit card and overseas transaction fees.
In Singapore, they are many multi-currency accounts to choose from, including those from local banks or online accounts. Here’s a quick look at some of them.
1. YouTrip
YouTrip is Singapore’s first multi-currency wallet that you can monitor and use through an app on your mobile phone. It comes together with a Mastercard that is linked to your YouTrip account, and you can use to make purchases while overseas and even online transactions.
YouTrip supports the exchange of 10 currencies and you can get live exchange rates anytime in the app. When the rate is favourable, you can do an instant exchange and the rate is locked in and will not change thereafter. You can hold a maximum of S$3,000 or equivalent in your YouTrip wallet at any point in time.
Besides these 10 currencies, you can also spend in over 140 currencies and you will be charged the wholesale exchange rate charged by Mastercard at no fees and no additional markup.
#KlookTip: Sign up for your new YouTrip account with the promo code KLOOK5 to get $5 in your account for free!
2. DBS Multi-Currency Account
The DBS Multi-Currency Account (MCA) allows you to hold 12 different foreign currencies and Singapore Dollars all in one account. And after you sign up for one with DBS, you can monitor and use your account through the DBS digibank app or website.
All you need to do is choose the currency you would like to exchange and perform a funds transfer to lock in the rate in the MCA. You can also set and receive foreign exchange rate alerts on digibank.
This DBS MCA can be linked to your existing DBS Visa Debit Card that can be used to do direct foreign currency payments in the foreign currencies in the MCA, except Renminbi. You can also shop online with the DBS Visa Debit Card.
Do note that while the MCA is free, there is a fee of S$7.50 per month (waived for customers up to 29 years old) if your daily total balance falls below S$3,000.
3. UOB Mighty FX
The UOB Mighty FX is great for those who already have an existing UOB SGD base account - One Account, iAccount, Wealth Premium Account, Privilege Account or KrisFlyer UOB Account. Mighty FX allows you to exchange 10 foreign currencies at attractive rates that you can refer to anytime in your UOB Mighty app.
When you sign up for a UOB Might FX account, you will also be issued a Mighty FX Debit Card or KrisFlyer UOB Debit Card, depending on the UOB SGD base account chosen by you. Do note that the annual card membership fee is S$18, but is free for the first three years and can be subsequently waived when a minimum of 12 Mastercard transactions are performed in a year.
#KlookTip: UOB is running a Might Friday Rates promotion when you can enjoy special rates on two foreign currencies every Friday till 31 July 2020.
4. TransferWise
TransferWise is a multi-currency account that allows you to hold over 40 different currencies through their user-friendly app. You can also apply for a TransferWise Platinum debit Mastercard that will allow free overseas ATM withdrawals of up to S$350 every 30 days.
Do note that there are currency conversion fees involved that are typically between 0.35% and 1%. These fees and exchange rates are displayed upfront on your app during your conversion, so you are able to know how much you are paying and getting from your transaction.
