With a plethora of app based challenger banks now doing the rounds with most offering ultra-low fx rates as one of their main selling points versus the incumbent banks such as Barclays, HSBC, Lloyds etc on first glance it may not be apparent what the point is of new comer Currensea.
Currensea does not try to offer a full replacement bank account like the other offerings. A lot of people dabble with the new challenger banks but do not fully adopt them as their main bank account. If the main reason for opening a challenger bank account is to get access to the improved fx rates and charges then it can be a bit of a phaff to top up the prepaid cards ahead of using the card on an overseas transaction, firstly having to work out approximately how much sterling equivalent will be necessary and then having to set up a bank transfer. After the transaction has completed residual cash will be left sitting on the account otherwise you will have to action a further transfer of the residual bank to your main bank account!
Currensea removes the need to top up first and instead links almost seamlessly with your bank account and instead deducts the payment as a direct debit afterwards so cutting out a lot of the hassle. They are able to do this due to the open banking regulations, so are able to access and view the balance on your bank account and so know you are good for your money ahead of the transaction. It then in effect works like an add-on to your main bank, just whip out the account for either online transactions or overseas at a retailer or cash machine and a couple of days later the payment is taken out of your bank account.
Currensea have just come out of Beta testing and have changed their rates so that they are now competitive alongside the Challenger banks not just compared to the incumbant banks:
Currensea charge no fee for using the card in an overseas cash machine. Most of the incumbent banks don’t charge additional fees but the challenger banks often only provide free cash withdrawal up to a certain level, with Revolut and Monese charging 2% above withdrawal’s over £200 in a month. Starling, however, has no limit on amount of cash that can withdrawn overseas.
Otherwise if Currensea is used only for foreign exchange transactions there are no other notable fees and charges.
So overall:
It’s therefore a toss up as to what means most to you… Go for Currensea if you want substantially cheaper rates over your incumbent bank’s rates but prefer less hassle. Otherwise go for Starling for slightly better rates or Revolut for potentially zero fees (depending on the timing), but don’t mind the additional hassle of funding the account. Unless you already regularly use a challenger bank, in which case Currensea may not offer much to you except if you need to take advantage of the additional ability to withdraw fee free from a cash machine.
If you sign up to Currensea through this link Currensea will plant six trees! Suppsosedly help offfset any overseas travel you are doing in using their card. I will not get any referral fee but will make me all warm and fuzzy in side to know we are benefiting the enviroment somehwat.
