The best exchange rate for converting Israeli shekels is always obtained by paying with a card, as it is by far the most economical option. To carry some cash, the best choice is to withdraw money from an ATM.
In other words, the best strategy to save money to the maximum would be to always pay with a card (as we will see later, in 2024 Wise’s card offers the best exchange rates and the lowest costs in the market) and only withdraw the amount of cash we will need from an ATM.
Certainly, this technique to save the maximum amount of money on your vacations might surprise you. After all, if you go to any currency exchange or bank, you will see how they advertise “no fees” prominently, and one might think that it would be logical to exchange shekels at the current exchange rate and that’s it, right? Well, not quite! Everything has a cost, even paying with a card has a cost, even if they don’t tell you or you don’t see it at first glance.
Let me tell you a secret: this website was created by a group of friends who have worked for several years in currency exchange offices, and frankly, changing cash is the worst option by far. Moreover, to give you an idea of the magnitude of this bad alternative, you should know that most currency exchange operators or banking employees get discounts to exchange currencies compared to the exchange rates offered to customers. But even with that, we never exchange cash. At most, depending on the trip, we take only a small amount for certain expenses or if it’s necessary to enter the country.
So, it’s clear: always pay with a card and only withdraw the necessary shekels in cash from an ATM. Now let’s see how to pay the least possible cost in both cases:
What is the best card for paying abroad?
Based on the study we have conducted of all the cards available on the market for this year 2024, for paying in any foreign country, travel cards have lower costs than bank cards, and among travel cards, the one that provides the lowest costs is the Wise card.
These results are valid not only regarding the costs of payments in international stores in foreign currency (Wise would offer the best conditions, other travel cards would be, on average, about 4 times more expensive, and bank cards about 10 times more expensive); but also in the costs of withdrawing cash in foreign currencies from ATMs outside your country (Wise would again offer the lowest fees, other travel cards would be, on average, about 4 times more expensive, and bank cards about 20 times more expensive).
Also, if you want to know precisely the differences in costs and functionalities among the different cards you can find on the market in 2024, don’t miss our comparative study at this link. As you will see, this extensive study analyzes all types of cards (debit, credit, and prepaid) and all types of providers (banks, fintech, financial institutions, etc.).
Is it necessary to bring cards from our country abroad?
As we have mentioned, it is preferable to use the Wise card instead of a conventional bank card or other travel cards since you will save a significant amount of money when paying in foreign stores and when withdrawing money from international ATMs by paying the lowest possible commissions.
In this way, you wouldn’t need to bring any other card initially, but keep in mind that if you are going to make payments such as renting a car, you will need a credit card, as most car rental companies will hold an amount as a deposit and will only accept credit cards.
If, on the other hand, you are not going to make this type of transaction, it is recommended to leave your bank cards with higher balances at home and only for security reasons, it would be advisable to carry an extra debit card with a small balance in case of emergencies (imagine that your other card gets damaged or stolen, and you also lose your phone, so you wouldn’t have anything to pay with).
Keep in mind that in case of theft, you run the risk of having fraudulent operations with your cards with the limits they have, while with the Wise card we recommend, your balance will never go negative, so only the deposited amount can be spent.
Additionally, you can instantly block your Wise card from your phone, while with your bank cards, you may have to call your bank to cancel them, risking that they might not provide service at that moment if it’s a holiday or outside customer service hours.
For all these reasons, when traveling, it is much better to carry a debit card like the Wise card with the amount of money you will need. If you need more, you can always reload it instantly through the mobile app, and if you want to block it due to loss or theft, you can also do it instantly through the app. This way, you’ll have full access to your money at all times, without paying commissions for it and minimizing the risk of theft.
As you can see, this card has numerous features through the mobile phone, so it’s important to make sure your phone’s battery is always fully charged. Remember that in many countries, the plugs are different. Therefore, it would be a good idea to acquire a universal plug adapter for travel, as it will be useful for any future trips you may take. At this link, we show you a very affordable universal plug adapter, as well as other ideal and necessary products for travel.
Finally, it’s important to know that if you are going to take your credit card to pay for deposits in operations such as renting vehicles, before traveling, it’s advisable to inform your bank that you will be traveling abroad and the limits you will need. Keep in mind that all cards have daily, weekly, and monthly limits, and when traveling, you will spend more than usual, so if you have somewhat low limits and don’t know it, you could reach your limit unknowingly and find yourself in serious trouble.
What to do if my card runs out of funds abroad?
If your debit card runs out of funds abroad, you can always obtain money in a straightforward way:
- If you have a bank card, contact a family member or friend who is a customer of the same bank to make a transfer to your account. Transfers between accounts of the same institution are processed instantly, so once the transfer is completed, your card will be able to access the new balance in your account. Another option would be to make an “immediate transfer” between accounts of different banks, as this type of transfer is also processed instantly.
- If you have a prepaid card like Wise, you can reload it through the app (or someone can do it for you), and you’ll receive the money instantly.
What do I do if all my cards are stolen abroad?
If all your cards are stolen abroad, here are your alternatives to get by:
- Use cash you withdrew from an ATM: You can pay with the cash in foreign currency if you made a withdrawal from an international ATM.
- Exchange your currency in cash: It’s always recommended to carry some cash in your home country’s currency in case of emergencies, as you can exchange it for local currency at exchange establishments if needed.
- Pay with your mobile phone: If your phone has NFC technology and your bank offers mobile payment services, you can link your mobile phone to your card, and even if the card is canceled or blocked due to theft, you can continue making payments with your phone without any problem.
- Have someone in your country pay for what you need: If you only need to purchase a plane, train, or boat ticket, any contact you have in your country can pay for it online and send you the boarding pass via mobile (or you can download it through the airline’s app).
- Receive money through money transfer agencies: In most tourist cities, there are many of these agencies. Anyone you know could send a transfer from your country for you to receive the money abroad.
- Sell your jewelry at a gold-buying store: In most major cities around the world, there are numerous gold-buying establishments that will buy any gold jewelry from you without any problem.
- Sell your higher-value belongings at a second-hand shop: The most sought-after items and easiest to sell would be technological products like phones or laptops, as well as good-quality clothing and watches.
- Ask for money: The easiest way to get what you need would be to ask fellow countrymen who can trust you. If you need a small amount, a perfect spot to ask would be near vending machines, as everyone there has change, and when you ask, it’s very easy for people to give you something.
- Go to your Embassy or Consulate: As a last resort, the representatives of your country can always provide assistance.
Where can I find the best cash exchange for Israeli shekels?
As mentioned before, the cheapest way to obtain cash in Israeli shekels is by withdrawing money from ATMs.
In any case, if you wanted to exchange cash for Israeli shekels at a currency exchange or bank, a margin of less than 5% from the official exchange rate would be a good rate. A margin between 5%-10% would be an acceptable rate; between 10%-15%, a poor rate, and beyond 15%, an exorbitant rate.
You can easily find the official exchange rate of the Israeli shekel against your currency on Google. By subtracting the rate they offer you and dividing the difference between both by the official exchange rate, you’ll get the percentage margin they would be applying to you.
Usually, highly crowded areas in tourist sites are the worst places to exchange currencies, as they apply higher margins on the exchange rates. Therefore, it’s best to search online beforehand for a good exchange establishment instead of going to the first one you see.
In any case, if it’s about exchanging a small amount of money, it wouldn’t matter much where you exchange it in case of urgency and need, as it would mean assuming a small extra cost in the worst-case scenario.
What amount of cash is sufficient for traveling?
Exchanging cash serves only two purposes:
- It serves as an emergency fund in case your card and phone are stolen, so at least you can manage in emergencies, like buying something to eat, making a call, traveling to the embassy if you need to get a duplicate passport, and reaching the airport to leave the country.
- It’s used if you need to make cash payments: at some street stores, some vending machines, and to pay for certain services like laundromats, phone booths, shopping carts that require coins, etc.
So, depending on the number of days you’ll be staying and what you plan to spend in cash, you can calculate more or less what you’ll need, which, in any case, shouldn’t be a large amount.
Is it possible to know if the exchange rate for Israeli shekels will be better or worse in the future?
Official exchange rates of all currencies work like any other financial market, just like the stock market. Certainly, there are analysts and financial gurus who make predictions, but like predictions about stock prices, with the data available, there is no evidence to prove that anyone is capable of predicting future prices.
In general, foreign exchange market quotes tend to be quite stable, and within a month, they don’t vary much more than 5%, unless there is an unexpected economic or political event, such as the unexpected victory of an opposition party with a disruptive economic program.