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السبت، 27 مايو 2017

Don’t get burnt – the best cards to use abroad in summer 2017

Euro notes in a jar atop a map

Taking the right card abroad can cut your costs, as exchange rates offered by specialist cards are better than using cash. But take the wrong plastic and you could be left out of pocket.

Avoid sky-high charges

Most current accounts are not designed for overseas spending and charge high fees for doing so. The worst offenders are the Bank of Scotland Vantage account, Lloyds Bank Club Lloyds account and the TSB Classic Plus account. Use any of these abroad and you’ll be charged a 2.99% exchange rate conversion fee, plus a fl at £1 fee. This means a £10 purchase will set you back £11.30.

 

Cash withdrawals can also be expensive as a percentage fee is usually charged for using your card in a foreign cash machine. On a percentage basis, Clydesdale Bank and Yorkshire Bank’s range of current accounts are the most expensive with a whopping 3.75% fee charged (minimum £1.50).

Also watch out for those accounts that have a high minimum transaction charge, as this can make small withdrawals very expensive. Once again, Bank of Scotland Vantage, Lloyds Bank Club Lloyds and TSB Classic Plus are the cards to avoid.

Click chart to expand.


On top of the 2.99% conversion fee, these accounts also charge a 1.5% cash withdrawal fee, subject to a minimum charge of £2 and a maximum of £4.50. This means withdrawing the equivalent of £10 in cash will cost £12.45.

Similar fees also apply to many credit cards, so check your account details before setting off.

Don’t break the bank

Specialist credit cards are generally the cheapest way to spend overseas. Our top picks – Creation Everyday, Halifax Clarity and Santander Zero – all have no exchange rate conversion fees and do not charge for cash withdrawals.

Remember to pay off these cards in full each month to avoid paying interest on your spending. Also bear in mind that interest will be charged from the day of withdrawal for cash machine usage.

 

If you don’t want a credit card, then there are a couple of current accounts worth considering. For spending in Europe, the Metro Bank current account is unrivalled. It has no exchange rate conversion fee and there are no added charges for cash withdrawals across 33 countries. However, fees do apply in the rest of the world.

The Virgin Money Essential current account has no conversion fees anywhere in the world. However, it charges £1.50 per cash withdrawal, so just use this in shops and restaurants rather than at cash machines.

With all these cards, both debit and credit, you may still be charged by the foreign bank for using their cash machine – but this should be clearly explained during the transaction process.

Click table to expand.


For all cards, make sure you pay in the local currency rather than in sterling. If you choose sterling, shops and restaurants can set their own exchange rate which is usually less competitive than the rate applied by your credit or debit card provider.

 

You should also take local currency with you. Avoid buying your cash at airport kiosks, as these are likely to sting you with the worst exchange rates. Instead, use websites such as Compareholidaymoney.com and TravelMoneyMax.com to fi nd the best deals online and in your local area before you jet off.

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