NOXOLO MIYA
Joburg - With the festive season fast approaching, research by numerous companies shows that people’s mental health during the festive season is negatively affected by financial concerns caused by a lack of planning.
Chantal Robertson, Head of Cross-Border Advice at FNB, said: “There are a number of 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.”
Expanding on this further, Robertson provides a helpful checklist you need to check off 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 trip, 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 a trip due to any reason, and covers booking cancellations by you or the tour company.
Beware of withdrawal fees when drawing cash:
Plan and spend within your budget. If you’re travelling to a foreign country and you suddenly need cash, you find an ATM and withdraw some. The next thing you know, you’ll be slapped with a huge amount of fees and charges. According to Robertson, a Global Account Debit card is a more secure means of making purchases; therefore, it is advised that cash be withdrawn using this card at an international ATM only when necessary (in the case where bank cards aren’t accepted, etc).
Use your Global Account card for international card transactions:
Swiping with a local credit or debit card results in 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. For example, if you’re travelling to Europe with a Euro Global card, there will be no additional fees or commissions levied — it’s the same as spending here in South Africa. And even if you are spending in another currency, such as the Australian dollar.
Take note of your Single Discretionary Allowance boundaries:
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 made 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 an identity number.
The Star