HOW TO AVOID INSANE CASH MACHINE WITHDRAWAL FEES: ARGENTINA
Argentina gets a bit of a bad rep for being an expensive country to travel in. I spent over 3 months of my time in South America in Argentina. Contrary to the critics, it's been much more affordable than I had envisaged.
So what's the big deal?!
In 2018 Argentina saw over 40% inflation on their currency. Incomes haven't risen anywhere near as fast. If you're a tourist you'll be getting more pesos for your buck, so you remain unaffected by the rise in prices. In my first six weeks alone, I saw the rate drop from US $1:$27 Pesos to US $1:$35 Pesos.
As of July 2019, the rate currently stands at US $1:$41 Pesos!
Unfortunately for many Argentinians, purse strings become tighter. Most switch their savings from Pesos to US dollars. And it's estimated that over 50% of Argentinians don't have a bank account!
With that said, there are two main costs that sting when you travel in Argentina.
ATM withdrawal fees
I'm not joking when I say withdrawing cash from an ATM will cost around US $10-$15 for a withdrawal of US $100-150. Ouch!!
2. Travel costs.
Getting a long-distance bus or a plane is not always cheap!
So let's tackle the first of the two:
Cash Machine Withdrawal Fees
Some cash machines have a withdrawal limit of around $3-4000 Pesos. Others have a limit of $5-6000 pesos. Generally, international banks such as HSBC give you more but this isn't a hard and fast rule.
In January 2019, US $1 will fetch you around $36-37 pesos. In other words, most of the time you'll be withdrawing less than US $200 and paying 10-15% on top for fees.
The best advice I can give you is to AVOID cash machine withdrawals! Unless they're necessary or you have an agreement set up with your bank where the fees are refundable.
With most withdrawals, the fees are as follows:
Fee by the Argentinian bank + any fees your home bank will charge you + hidden fees (the spread on the exchange rate)
So what are the best and cheapest ways to get cash in Argentina and reduce how much you pay for it? After spending over 3 months here, I have a few handy tips to share with you.
1. Set up an agreement with your bank.
As mentioned above, some banks will refund your cash machine withdrawal fees abroad. Check with your bank if they have one of these programs.
2. Revolut card
I use this everywhere on my travels, reducing withdrawal fees to zero in a lot of places.
If you have to use a cash machine, Revolut gives you £200 free in cash machine withdrawals a month. The exchange rate is the Reuters mid-market rate, thus you don't pay hidden fees.
But, you do pay what the Argentinian bank charges (which is still quite a lot!)
3. Azimo
Send money to Argentina using your debit card and choosing a location to collect your cash. The fees are around £3 a transaction however if it's your first time using the app, you can get £10 in credit right here!
This has been one of the best methods for getting cash in Argentina for me. It only requires a debit/credit card and you can choose a pick-up location in any of the major cities in Argentina.
At £3 a transfer, it's definitely cheaper than an ATM withdrawal.
The annoying part is that you may have to queue up to collect your money. Remember to bring proof of ID with you!
(Update. If you're European, transferring via debit card works + the process is straight forward.
According to some American readers, it's not as straight forward if you're based in the US.
American friends, I'll get my thinking cap on for you guys. If you do find any handy tricks, let me know in the comments below 🙃 )
4. Western Union
Like Azimo, with more locations available for pick up. This can be useful if you're not in a big city.
You can pay by debit/credit card. There is also a set fee for the transfer so it makes more sense to use this when you have a need for a lot of cash.
The set transfer fee can vary depending on which country you are sending the money from. It's often lower for larger sums of money. When I used it to transfer euros from France, I paid €5.
5. Bring cash!!
This is the easiest and cheapest method. Most official currency exchanges will accept USD, EUR + GBP.
For USD, bring the latest notes in either US $50 or $100 as a lot of exchanges will only change the larger notes. Saying that, for EUR, some places won't exchange the €500 bill.
If arriving from a neighboring country such as Chile, withdraw some cash before you come. Then exchange it in Argentina!
You'll need your passport. The smallest amount they'll exchange is often $100.
6. The guy on the street yelling 'cambio'
There's a higher risk of counterfeit money and can be sketchy.
Update December 2019: According to some lovely readers, if you can find a trusted place to change your money (preferably not on the street), you can get the blue dollar rate which at the moment in December 2019 is around 20% higher than the official rate.
Be sure to ask around for a reputable place!
7. Pay by card (when you can!)
This is the most obvious money saver but it's not always available everywhere. And they may ask for ID when you pay by credit card.
Paying for your accommodation by card is a huge money saver. But, some hostels will only accept cash, even though they're obliged to accept credit card.
If you're a foreigner paying with credit/debit card, then your hostel must take tax off your final bill. This can reduce your accommodation costs by as much as 20%.
In reality, most hostels don't exercise this and pocket the extra money, but, it's still worth asking!
PLANNING A TRIP TO ARGENTINA? CLICK HERE FOR TRAVEL TIPS + EXPENSES
Long-distance buses and planes
Getting from one city to another in Argentina is never a short distance. If you're heading to Iguazu, Salta, Mendoza, Bariloche, El Calafate (to name a few!) you'll more than likely need to hop on a bus or a plane.
When travelling to Argentina, keep in mind that flying can often save you time AND money!! It's not uncommon for flights to be cheaper than the equivalent bus journey.
Useful websites for bus timetables:
Busbud: You can pay by card! Be sure to print off your bus ticket if it asks you to!
Platform 10: It's a widely used website in Argentina for reserving your bus ticket. You can often find more availability than on Busbud.
If you choose to fly, there are many low-cost options available including:
Argentina isn't the cheapest South American country but it certainly isn't the most expensive (enter Chile + Uruguay!)
The fact that Argentina has been as cheap as it has been, is unusual. For example, I spent 6 days and 5 nights in El Chalten, where I spent less than £15 a day on a dorm bed and food. This included one lavish dinner where I splashed out on some amazing Patagonian lamb.
For Patagonia, that's pretty cheap! And much needed considering how much the W Circuit in Chile set me back.
I spent a month in Salta where my expenditure was £526.34 in total. That's £17 a day. Pretty cool for a solo traveler who doesn't always get the perks of sharing costs with buddies or a partner.
Taking a moment after climbing to the top of Laguna de Los Tres in El Chalten
So there you have it! I hope this post saves you pulling your hair out every time you enter that pin number into an ATM machine. Or even a few dollars here and there :).
Happy traveling!!
Planning a trip or fancy a freebie? These are some websites and services I love:
Booking.com: For the best hotel deals! 🏝
World Nomads: Travel insurance on the go 🌎
Airbnb: For the best apartment deals!🏡
*Affiliate links in this post!
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