Top Accounts Offering Fee-Free Foreign Spending - Evade Foreign Transaction Fees Hassle-Free
Going on a vacation this summer? Your spending abroad might look different from pre-pandemic times.
Before, most folks would carry a bundle of foreign currency. But these days, major holiday spots widely accept card payments and contactless.
To save some cash, consider the way you spend abroad. Plenty of high-street banks have moved away from charging customers for transactions and withdrawals, but now require a paid monthly account. Others offer free spending abroad, but they come with monthly limits.
So, it's crucial to choose the bank with the best deal for your travel frequency and spending requirements. Here's a breakdown of what the major banks offer:
Barclays
If you use your Barclays debit card abroad, you'll be charged a 2.99 per cent fee. However, if you pay for your transaction in sterling, it won't apply, but there may be commission charges. Barclays does offer a 'travel wallet' in their app that allows you to buy foreign currency and use it as a travel money card.
Chase
Chase doesn't charge for using your debit card abroad and applies the current Mastercard exchange rate. You can withdraw up to £500 a day from cash machines, whether in the UK or abroad, but there's a limit of £1,500 on withdrawals abroad in any calendar month.
Unfortunately, Chase's generous cashback scheme doesn't apply to purchases made outside the UK or Channel Islands, or if you pay in currencies other than sterling.
First Direct
First Direct no longer charges for transactions and allows daily cash withdrawals of up to £500 without fees.
Halifax
Halifax doesn't charge fees for transactions in the European Economic Area, but for spending outside these areas, you'll face a withdrawal fee of £1.50, another charge to convert your cash to pounds, and a charge for each transaction. However, Halifax's Ultimate Reward debit card, which costs £19 a month, doesn't charge any of these fees and includes other perks like travel insurance.
HSBC
HSBC's standard fees are 2.75 per cent for transactions and cash withdrawals, but they waive these fees with a global money account, available upon application.
Lloyds
Lloyds customers face fees for transactions and cash withdrawals, but those with Club Lloyds, Silver, or Platinum accounts can use their debit card fee-free.
Monzo
Monzo customers can use their debit or credit card without foreign transaction fees and can withdraw cash fee-free in the European Economic Area and up to £200 elsewhere.
Nationwide
Nationwide charges 2.99 per cent of the transaction amount and additional fees for cash withdrawals, but these are waived for people with a Flex Plus account.
Natwest
Natwest customers with specific accounts will pay fees for transactions and cash withdrawals, but there's a free travel account option for existing account holders registered for mobile banking with limited fees.
Revolut
Revolut doesn't charge foreign transaction fees, but depending on your plan, you may be limited in the amount you can withdraw in cash a month.
Starling
Starling customers can pay and withdraw without fees using their Mastercard. The withdrawal limit is slightly lower at £300 per day.
- To save money on personal-finance matters while traveling, it's important to choose a bank offering the best deal based on your travel frequency and spending requirements.
- First Direct, for instance, no longer charges for transactions and allows daily cash withdrawals of up to £500 without fees.
- Halifax's Ultimate Reward debit card, costing £19 a month, doesn't charge fees for transactions and cash withdrawals outside the European Economic Area and includes travel insurance.
- Revolut is another option, as it doesn't charge foreign transaction fees, but the cash withdrawal limit may vary depending on your plan.
- Starling customers can pay and withdraw without fees using their Mastercard, with a daily withdrawal limit of £300.
