Asda exchange rate
Before we dive into whether the Asda exchange rate is good or bad, let's first understand how exchange rates work. When you exchange currency, the rate you get determines how much foreign money you receive for your pounds. There are different types of exchange rates, but the most important one to know is the interbank exchange rate, also called the mid-market rate or the real exchange rate.
This is the rate banks and financial institutions use when they trade currencies with each other. It's the fairest and most accurate rate because it's based on real-time supply and demand in the currency markets. However, most banks and financial services don’t give you this rate when you exchange money or make payments abroad.
The Hidden Fees in Asda Exchange Rate
Most banks, credit cards, and even currency exchange providers like Asda apply a markup to the exchange rate. This markup is essentially a hidden fee, where they add a small percentage on top of the interbank rate without telling you. As a result, you get fewer euros, dollars, or other foreign currencies than you should.
For example, if the interbank exchange rate for GBP to EUR is 1.17, Asda might offer you 1.13. That difference might seem small, but over the course of a holiday, it can add up to hundreds of pounds lost in hidden fees.
Banks That Beat the Asda Exchange Rate
Some modern digital banks, such as Monzo and Starling, don’t apply a markup to exchange rates. Instead, they use the Mastercard exchange rate, which is typically very close to the interbank rate. This makes them a much better alternative to using the Asda exchange rate for foreign transactions.
However, opening a new bank account just for travel spending might not be convenient for everyone. If you don’t want to switch banks, there’s another way to avoid hidden fees without the hassle of opening a new account or topping up a prepaid travel card.
The Smarter Alternative: Curve
Curve is a digital wallet that works with your existing debit and credit cards. The best part? Curve uses the Mastercard exchange rate with NO MARKUPS, no matter which card you use abroad. That means you generally get the best possible exchange rate, every time you spend, with no hidden fees.
How Curve Works
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Download the Curve app and link your existing cards – No need to open a new account; simply connect your debit or credit cards to the Curve app.
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Pay with Curve anywhere in the world – Your payments will go through using the Mastercard exchange rate, which is close to the interbank rate.
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No extra fees or markups – Unlike Asda, high-street banks, or traditional travel cards, Curve ensures you get a fair exchange rate with no sneaky charges.
More Travel Benefits with Curve
Aside from beating the Asda exchange rate, Curve has additional travel perks that make it the ideal travel companion:
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0% foreign transaction fees – Curve kills foreign transaction fees charged by your bank, saving up to 3% on every purchase abroad. Foreign transaction fees are addional fees, on top of the hidden markups on exchange rates.
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Cashback & travel rewards – Earn 1% cashback on all your foreign spending outside Euro and GBP with any premium plan. And get regular cashback offers on hotels, airlines, car rentals, and more.
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Travel light with all your cards in one – Carry just one Curve card instead of multiple bank cards.
So, is the Asda Exchange Rate any good?
Compared to alternatives like Monzo, Starling, or Curve, the Asda exchange rate is not competitive. The hidden markups mean you’ll end up paying more for your foreign currency. If you want the best exchange rate without the hassle of switching banks, Curve is the smartest way to pay abroad.
By using Curve, you can ensure you get the fairest exchange rate everywhere you go, with any card you choose. So before you travel, make sure you have Curve in your wallet to avoid the costly pitfalls of poor exchange rates.
