The ATM rule you need to follow when abroad and best credit and debt cards for summer holidays
Read on to find out which credit and debit card you should pack for your next getaway
DON'T GET BURNT The ATM rule you need to follow when abroad and best credit and debt cards for summer holidays
CREDIT and debit cards can charge you a fee of up to 5 per cent to use your card abroad.
And it can cost £5 extra to withdraw money from an ATM while on holiday.
Advertisement
1
You could be hit with a surprise bill if you bring the wrong card while on holiday
Credit: Getty
Andrew Hagger, personal finance expert at Moneycomms.co.uk, said: 'Taking the right plastic with you on your travels can end up saving you a decent sum over the course of a week or two overseas, so it's worth checking what your bank card charges you before you jet off.'
Adele Cooke explains how to get your summer wallet ready - and the ATM rule you need to follow.
Debit card
It can be easy to use your debit card while on holiday but doing so could land you with a surprise bill.
For example, Lloyds Bank charges customers who use their debit card abroad a 2.99 per cent foreign transaction fee.
Advertisement
This would cost you £2.99 for every £100 you spend.
But some cards do not charge fees when you use them abroad, so you can spend as you do at home.
Several big banks offer cards without overseas fees, so it's worth shopping around to get the best deal.
First Direct does not charge fees to pay with its debit card while abroad and there is no penalty to withdraw cash from an ATM.
Advertisement
Santander customers with an Edge current account do not pay any fees when using the card to make purchases or withdraw cash while overseas.
But the account has a £3 fee and you must pay at least £500 into your account each month.
Avoid these common holiday booking mistakes for a stress-free vacation
Meanwhile, Starling does not charge a fee to use its card or withdraw cash while on holiday.
Keep an eye out for cards that offer Visa, Interbank or Mastercard exchange rates as these will give you the best conversion.
Advertisement
Other cards charge a mark up on top of the exchange rate to cover some of their costs.
You can compare credit cards using websites including moneyfactscompare.co.uk or Compare the Market.
How to avoid roaming charges
Simrat Sharma, a mobiles expert at Uswitch, said switching to an eSIM - short for embedded SIM - can be cheaper than using international roaming.
'eSIMs make it easier to change networks," she said.
"So for example, if you're abroad you can quickly connect to the local network to pay local rates - without having to add or swap a physical local SIM card for your device.
"This means travel eSIMs are almost always cheaper than using international roaming, as users are effectively tapping into the same network plans as locals.
If you're regularly switching numbers or travelling to different locations, you'll be able to keep them all safely in digital format rather than carrying around a number of small cards.
'The software can easily be accessed via your device's app store and uploaded to your phone in a few quick steps."
Credit card
Many credit cards also charge foreign transaction fees of around 3%, which would add £1.50 to the cost of a £50 meal out.
But there are several credit cards that let you withdraw money from ATMs or spend in shops and restaurants fee-free.
Advertisement
The Barclaycard Rewards Card does not charge you transaction fees when you are abroad.
It uses Visa's exchange rate, so you will get the best value on conversions.
Meanwhile, the NatWest Credit Card does not charge a transaction fee so you can spend abroad without paying a penalty.
A credit card can also give you extra protection if something goes wrong while you are away.
Advertisement
Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: 'A credit card will also protect spenders under Section 75 of the Consumer Credit Act on purchases between £100 and £30,000 if a service or goods are not provided or damaged.'
Pre-paid card
A pre-paid card can be a good option if you want to keep an eye on your holiday budget.
The cards are not linked to your bank account so you need to top them up before your trip.
This means that you cannot become overdrawn and can lock in an exchange rate before you travel.
Advertisement
But some places may not accept the cards, warns Reena Sewraz, Which? retail editor.
She said: 'A fee-free credit card is useful if you're planning to hire a car, as many operators don't accept prepaid travel cards.'
Some prepaid cards may also have hidden fees.
The Post Office Travel Money Card lets you load up to 22 currencies onto the card and spend cash abroad fee-free.
Advertisement
But you will be charged 2 euros to withdraw cash at an ATM.
You can load 15 currencies onto the Asda Travel Money Card and spend and withdraw cash without fees.
Watch out for the inactivity fee, which is £2 a month.
Avoid one button
You could lose cash by making the wrong choice at foreign ATMs or tills.
Advertisement
Cash machines abroad usually give you the option to pay in pounds or the local currency.
But paying in pounds could cost you more.
This is because the overseas bank will do the conversion to pounds and the rates are usually unfavourable.
You will usually get a better rate by paying in the local currency.
Advertisement
Cash is king
You should carry some cash with you when travelling abroad.
Andy Coley, 49, from London wished he had exchanged cash before his business trip to Istanbul, Turkey, in March.
The leadership development trainer was hit with high fees to withdraw cash from an ATM.
Andy packed his Post Office Travel Card, which he often uses when abroad.
Advertisement
But he found most shops and restaurants in Istanbul would not accept the card.
Andy was forced to withdraw £500 in cash from an ATM, which cost him £37 in fees.
He said: 'I would definitely travel with cash in the future and do a bit more local research.'
You can compare the rates on offer at different currency exchanges using Money Saving Expert's online tool.
Advertisement
The cheapest place to buy currency may depend on which type you want, so check the rates before you head to a bureau du change.
Do not exchange cash at the airport as you may get a bad exchange rate.
Never withdraw currency using a credit card as you may be charged a high interest rate or fees.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
Advertisement
Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Scottish Sun
31 minutes ago
- Scottish Sun
Scots holidaymakers warned to check child's passport over rule that could see them BARRED from flight
WITH the summer holidays fast approaching, families across Scotland will be gearing up for their long-awaited getaways. Thousands of jet-setters will be looking forward to their trips as schools prepare to finish up this month for six weeks. 3 Experts have shared their top advice on how to know if your passport is valid Credit: Getty 3 And families have been urged to double-check their kids' passports before heading to the airport Credit: Getty But the one thing that can throw an entire trip off course is an invalid passport. Even if you have a passport that is in-date, it still might not meet certain travel requirements - and this can grind your whole holiday to a halt. This is especially the case if you have a red, pre-Brexit passport. Travel experts are urging parents to double-check their child's passport before heading to the airport. Pros as Max Spielmann, which offers in-store passport photo renewal services across the UK, has warned families to check that everyone has a valid passport. They shared their top tips on how to know whether your old, red passport is still valid or not. The key is to check your passport before booking your holiday to ensure no unwanted surprises Sue Burden And they revealed that there is a little-known rule that could actually see children barred from a flight. Sue Burden, Retail Director at Max Spielmann, said: 'The key is to check your passport before booking your holiday to ensure no unwanted surprises. 'As we offer a passport renewal service, you would be surprised at the number of people who come in to renew their passport with only a couple of days before their flight, after only realising that their passport was invalid or expired. 'We recommend that you check specific entry requirements for your destination country on the official website of the country's embassy or consulate, as rules can change." Tottenham fan passport nightmare travelling to Bilbao for Europa League final The three-month rule You might realise it, but there is actually a very sneaky three-month passport rule when travelling to the EU. We all know that our passports have to be in-date to travel, but experts have revealed that doesn't just apply to the time you're in another country. Passports now need to be valid for at least three months AFTER you arrive at your destination. The experts explain: "Many have turned up to their airport but been denied boarding due to their passport not being valid for a minimum of three months after their planned arrival. "Each passport needs to have at least the months' validity from the date of exit of the European Union Schengen Area, otherwise you will be denied entry to your flight." The six-month rule For trips to countries outside of the EU, your passport must be valid for even longer. The same rules apply as the three-month rule, only for countries outside of the EU, it needs to be valid for six months after your trip. Travel pros advise: "Many countries, such as Cape Verde, Malaysia, and the UAE, require at least 6 months' worth of passport validity after your planned date of arrival. "This way, you are sure not to overstay your permitted time. "So, make sure your passport is valid for at least six months before your travel date to ensure your journey goes smoothly." Transiting and connecting flights ONE thing that many holidaygoers forget to check passport entry requirements for is the country where their connecting flights are. The travel pros advise: "Even if one country where these rules apply isn't your final destination, the rules and regulations still apply. "Even if you are flying from one country to another where these rules don't apply, you still could be denied boarding. "As a rule of thumb, ensure your passport has a minimum of validity of six months, and is less than ten years old each time before you travel. "That way you'll avoid any hiccups, and any last minute changes to your travel plans." The ten-year rule Another technicality that could sacrifice your time away is the little-known ten-year rule. This applies to many European countries and depends on the date that your passport was issued. Some countries require a visitor to have a passport that has been issued less than ten years before you enter. For example, if you wanted to go on holiday on June 15, 2025, then your passport must have been issued sometime after June 15, 2015. If it doesn't, then you face not being allowed to enter upon arrival. The experts say: "If your passport was issued before September 2018, your passport could be valid for more than ten years. "Although this will allow you to travel to most countries outside of the EU, if you're travelling to any EU country other than Ireland, Iceland, Norway, Liechtenstein and Switzerland, your passport MUST have been issued LESS than 10 years before the date you enter the EU country."
Scottish Sun
2 hours ago
- Scottish Sun
Major bank to close 23 more branches this month in huge blow to UK high streets
Keep reading for the full list of closures below CHEQUE PLEASE Major bank to close 23 more branches this month in huge blow to UK high streets Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) A MAJOR bank is set to close 23 branches this month, as British high streets struggle to survive. The first round of Santander's closures is underway, after the bank announced in March of this year that they would be shutting at least 95 sites nationwide. Sign up for Scottish Sun newsletter Sign up 2 Santander is set to close 23 stores this month Credit: Getty They cited the reason for the closures as customers moving increasingly online, reducing the need for in-person services. A statement on its website reads: "We last did a major review of our branches in 2021. "Since then, many of our customers are choosing to use Mobile, Online and Telephone Banking more, and branches less." However, there are concerns about the impact these closures could have on vulnerable people with limited access to online facilities. Charities like Age UK are campaigning to maintain some in-person banking options, with 4 million older Britons unable to manage their finances online. Caroline Abrahams, charity director at Age UK, said: 'Physical spaces – whether a bank or building society branch, Banking Hub, or alternative suitable provision – must continue to exist so people can still carry out face-to-face tasks. "The disappearance of face-to-face banking risks cutting a significant minority of the older population out of an essential service, making it difficult if not impossible for them to manage their money and maintain their independence.' The only alternative is 'Banking Hubs' which have been launched to give customers access to cash and services, regardless of which bank they are with. In addition to the 95 closures countrywide, Santander will also be making changes to surviving branches. This includes reduced opening hours, converting some to 'counter-free' businesses, and opening work cafes. These 'work cafes' provide free co-working spaces, bookable meeting rooms and banking facilities, available to anyone, even if you aren't a Santander customer. Santander's £130 Million Recovery: What You Need to Know The closures are part of a wider financial shift in which banks are prioritising online services. According to consumer group Which?, more than 6,300 bank and building societies have closed since January 2015. This averages out to 53 store closures per month. 2 Banks have reduced in-person services as customers move online Credit: Getty Other major banks have also made the decision to close a number of branches, with 102 set to close across different banks this month. This includes major providers like Lloyds, Natwest and Halifax, in addition to Santander's closures. Meanwhile Nationwide has promised to keep its nearly 700 branches open until the start of 2028 as they claim more customers are visiting their stores. Santander is set to close even more stores over the coming months, with the dates of 18 branches still yet to be announced. Reduced hours will come into effect on June 30, with 36 stores affected. Here is the full list of June closures:
Scottish Sun
11 hours ago
- Scottish Sun
Shoppers race to popular supermarket as bargain Fairy pods for 100 washes spotted on shelves
LAUNDRY HACK Shoppers race to popular supermarket as bargain Fairy pods for 100 washes spotted on shelves Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) SHOPPERS are rushing to a popular chain with over 300 stores across the UK after spotting a cracking deal on a household essential. Farmfoods is selling Fairy laundry pods offering 100 washes - yet priced at less than £20. Sign up for Scottish Sun newsletter Sign up 2 Farmfoods is a Scottish frozen food and grocery supermarket chain with 341 stores Credit: Getty 2 Farmfoods is selling bargain Fairy laundry pods, shoppers claim Credit: Getty One savvy shopper took to social media to share their cheap find, writing: "100 washes are back in Farmfoods £19,99." This is a bargain compared to Amazon, where the same Fairy Platinum Non Bio Pods pack currently goes for £25.99. Farmfoods is a Scottish frozen food and grocery supermarket chain with 341 stores across the UK. Founded in 1955, Farmfoods is headquartered in Cumbernauld, Scotland, with a strong presence across Scotland, Northern England and Wales. While Farmfoods specialises in frozen foods, the chain also sells a range of groceries and household essentials. It comes as shoppers spotted Farmfoods is selling a limited edition chocolate that is a twist on a classic for just 49p. Fry's Turkish Delight Orange, which is a citrus twist on the classic floral tasting chocolate, was first picked up in stores last summer. Meanwhile, Tom Church, co-founder of discount code website shared with The Sun today the best times to shop at retailers like B&M and Poundland to save money. He advised that Wednesday mornings are the best time to visit B&M, as "this is when most of the new reductions are dropped". Cleaning fan reveals the cheap, easy way to get clothes smelling 'beautiful' without shelling out on pricey dryer sheets Similarly, for Home Bargains, Tom recommends shopping first thing in the morning, as larger stores typically receive deliveries around 7.30am each day. He also suggests taking a careful look around as you enter the store, explaining, 'Often, Home Bargains keeps the best deals at the front to lure you in. "You don't want to walk straight past them on the way in!' Superdrug often offers promotions and shopping incentives. Tom says the best time to shop there depends on "what you're buying, and timing your shop to coincide with a relevant offer". For example, the store often runs 3-for-2 deals on beauty products, so if you're restocking your makeup bag, it may be worth waiting for that offer to return. Aldi is well known for its middle aisle Special Buys, selling everything from air fryers to dupes for Dyson hairstylers. These deals drop on Thursdays and Sundays, so arriving early on those days gives you the best chance to grab the bargains. The store also has red stickers to point out an item has been reduced. Tom said: "If you get there early, you have a better chance of bagging them. Just look out for red stickers.'
