Latest news with #LaithKhalaf
Scottish Sun
01-08-2025
- Business
- Scottish Sun
Little-known holiday money mistake costing you £100s in fees – easy way to avoid it
Plus, we've explained the spending rule you should always follow this summer SUMMER FAIL Little-known holiday money mistake costing you £100s in fees – easy way to avoid it Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) A LITTLE-known holiday mistake could cost you dearly with hidden fees catching travellers out. Experts warn against using credit cards for ATM withdrawals or buying foreign currency online. Sign up for Scottish Sun newsletter Sign up 1 Tthese fees can seriously dent your holiday budget Credit: Getty Using a credit card to withdraw cash comes with high fees - it's no secret. However, many travellers don't realise that buying foreign currency online is treated the same way, with banks applying hefty fees and interest charges. Laith Khalaf, head of investment analysis at AJ Bell, said: "You need to be careful when ordering travel money online. "That's because if you pay by credit card, you're likely to pay a substantial 'cash fee' to your bank. "It's extremely cheeky, because your bank isn't actually converting your money into cash in this instance, the currency exchange provider is. "However, it's best to avoid these charges by sticking to using a debit card when ordering holiday cash online." For example, if you use Santander's Everyday Balance Transfer credit card to buy £1,000 of currency online, you'd face a 2.95% non-sterling transaction fee plus a 3% cash fee, adding up to £59.48 in extra costs. Meanwhile, a Lloyds Bank Everyday Credit Card would charge a 5% cash transaction fee for the same purchase, resulting in £50 in extra costs. Repeat the move for several summer holidays, and the costs quickly rack up. However, using a fee-free debit card, like First Direct's, means you wouldn't pay any additional fees at all. Jenny Ross, money editor at Which?, warned travellers to carefully review their card's terms and conditions, as most cards include these extra charges. She said: "Over a week away, these fees can seriously dent your holiday budget. "To avoid them, look for a card without foreign transaction and purchase fees and always pay in the local currency for the best exchange rate." SPENDING ABROAD: Tips to Avoid High Fees What's the solution? Use a debit card when ordering currency online to avoid unnecessary fees. That's unless you have the Barclaycard Rewards Visa, which is the only credit card that doesn't charge fees or instant interest for ATM withdrawals abroad. Before you travel, take time to shop around for the best exchange rates and plan ahead. Compare travel money companies online, considering both rates and any fees, to secure the best deal. Use a debit card when ordering currency online to avoid unnecessary fees. Don't forget to factor in delivery costs and choose the option that gives you the most spending power on holiday. If you're short on time, you can still order online and collect your currency at the airport. Comparison tools like TravelMoneyMax can help you quickly compare pick-up and pre-order rates to maximise your savings. Which credit cards don't charge for overseas spending? Barclaycard Rewards Visa No fees on overseas spending or ATM withdrawals No interest on cash withdrawals if repaid in full Representative APR: 28.9% Halifax Clarity Card No fees on overseas spending or ATM withdrawals, but interest will apply from the day you make a cash withdrawal. MBNA Travel Cashback Credit Card No fees or interest on overseas spending for three years (if repaid in full each month), 2.95% fee from year four. Overseas ATM withdrawals come with a 5% fee and 12.9% representative APR interest charged daily until repaid Virgin Money Travel Credit Card No fees or interest on overseas spending Overseas ATM withdrawals have a 5% fee and 24.9% representative APR interest charged daily until repaid What are the alternatives? Deciding whether you really need to order cash in advance is important - especially if you have access to fee-free debit cards or prepaid travel cards. These cards can save you money and simplify spending, offering flexibility for your holiday budget, particularly in destinations where cards are widely accepted. Many options, including prepaid debit cards, let you pay abroad without fees or at a fixed exchange rate, making them a smart choice for travellers. Top debit cards You should always check the terms and conditions of your debit card to see if, on the off chance, you can use it abroad without any extra fees. Chase, First Direct and Starling all offer fee-free spending when you use their debit cards abroad. Those without this capability could choose to link their bank account with Currensea's Mastercard debit card via open banking. Then when you spend or withdraw on the Currensea card, it charges your linked current account in pounds (via direct debit), avoiding the non-sterling transaction fees and ATM fees that most banks charge. Top prepaid cards A great alternative to carrying cash or your debit card is using a prepaid travel card. Brands like Revolut, Wise, and EasyFX offer prepaid cards that let you load a set amount of money at a fixed exchange rate. This means if the rate is favourable now, you can lock it in, and it will remain the same while you're on holiday. However, be cautious - these cards can sometimes come with hidden fees and charges. Always read the fine print to avoid unexpected costs. Money loaded onto a prepaid card is considered electronic money (e-money) and isn't protected by the Financial Services Compensation Scheme (FSCS). FSCS protection ensures your money is safeguarded up to £85,000 if a bank or financial institution collapses. However, prepaid card providers must keep your money in a separate ringfenced bank account, away from their operating funds. This means that if the provider goes bust and has followed the rules, the bank or building society holding your money will still have it, and you should be able to reclaim it.
The Sun
01-08-2025
- Business
- The Sun
Little-known holiday money mistake costing you £100s in fees – easy way to avoid it
A LITTLE-known holiday mistake could cost you dearly with hidden fees catching travellers out. Experts warn against using credit cards for ATM withdrawals or buying foreign currency online. 1 Using a credit card to withdraw cash comes with high fees - it's no secret. However, many travellers don't realise that buying foreign currency online is treated the same way, with banks applying hefty fees and interest charges. Laith Khalaf, head of investment analysis at AJ Bell, said: "You need to be careful when ordering travel money online. "That's because if you pay by credit card, you're likely to pay a substantial 'cash fee' to your bank. "It's extremely cheeky, because your bank isn't actually converting your money into cash in this instance, the currency exchange provider is. "However, it's best to avoid these charges by sticking to using a debit card when ordering holiday cash online." For example, if you use Santander's Everyday Balance Transfer credit card to buy £1,000 of currency online, you'd face a 2.95% non-sterling transaction fee plus a 3% cash fee, adding up to £59.48 in extra costs. Meanwhile, a Lloyds Bank Everyday Credit Card would charge a 5% cash transaction fee for the same purchase, resulting in £50 in extra costs. Repeat the move for several summer holidays, and the costs quickly rack up. However, using a fee-free debit card, like First Direct's, means you wouldn't pay any additional fees at all. Jenny Ross, money editor at Which?, warned travellers to carefully review their card's terms and conditions, as most cards include these extra charges. She said: "Over a week away, these fees can seriously dent your holiday budget. "To avoid them, look for a card without foreign transaction and purchase fees and always pay in the local currency for the best exchange rate." SPENDING ABROAD: Tips to Avoid High Fees What's the solution? Use a debit card when ordering currency online to avoid unnecessary fees. That's unless you have the Barclaycard Rewards Visa, which is the only credit card that doesn't charge fees or instant interest for ATM withdrawals abroad. Before you travel, take time to shop around for the best exchange rates and plan ahead. Compare travel money companies online, considering both rates and any fees, to secure the best deal. Use a debit card when ordering currency online to avoid unnecessary fees. Don't forget to factor in delivery costs and choose the option that gives you the most spending power on holiday. If you're short on time, you can still order online and collect your currency at the airport. Comparison tools like TravelMoneyMax can help you quickly compare pick-up and pre-order rates to maximise your savings. Which credit cards don't charge for overseas spending? Barclaycard Rewards Visa No fees on overseas spending or ATM withdrawals No interest on cash withdrawals if repaid in full Representative APR: 28.9% Halifax Clarity Card No fees on overseas spending or ATM withdrawals, but interest will apply from the day you make a cash withdrawal. MBNA Travel Cashback Credit Card No fees or interest on overseas spending for three years (if repaid in full each month), 2.95% fee from year four. Overseas ATM withdrawals come with a 5% fee and 12.9% representative APR interest charged daily until repaid Virgin Money Travel Credit Card No fees or interest on overseas spending Overseas ATM withdrawals have a 5% fee and 24.9% representative APR interest charged daily until repaid What are the alternatives? Deciding whether you really need to order cash in advance is important - especially if you have access to fee-free debit cards or prepaid travel cards. These cards can save you money and simplify spending, offering flexibility for your holiday budget, particularly in destinations where cards are widely accepted. Many options, including prepaid debit cards, let you pay abroad without fees or at a fixed exchange rate, making them a smart choice for travellers. Top debit cards You should always check the terms and conditions of your debit card to see if, on the off chance, you can use it abroad without any extra fees. Chase, First Direct and Starling all offer fee-free spending when you use their debit cards abroad. Those without this capability could choose to link their bank account with Currensea's Mastercard debit card via open banking. Then when you spend or withdraw on the Currensea card, it charges your linked current account in pounds (via direct debit), avoiding the non-sterling transaction fees and ATM fees that most banks charge. Top prepaid cards A great alternative to carrying cash or your debit card is using a prepaid travel card. Brands like Revolut, Wise, and EasyFX offer prepaid cards that let you load a set amount of money at a fixed exchange rate. This means if the rate is favourable now, you can lock it in, and it will remain the same while you're on holiday. However, be cautious - these cards can sometimes come with hidden fees and charges. Always read the fine print to avoid unexpected costs. Money loaded onto a prepaid card is considered electronic money (e-money) and isn't protected by the Financial Services Compensation Scheme (FSCS). FSCS protection ensures your money is safeguarded up to £85,000 if a bank or financial institution collapses. However, prepaid card providers must keep your money in a separate ringfenced bank account, away from their operating funds. This means that if the provider goes bust and has followed the rules, the bank or building society holding your money will still have it, and you should be able to reclaim it. Holiday rule you should ALWAYS follow WHEN paying by card abroad, you'll often be asked if you'd like to pay in pounds or the local currency. You should ALWAYS choose to pay in the local currency., This is because it ensures your card handles the currency conversion, which typically offers a much better exchange rate than the one provided by the retailer or ATM. If you choose pounds, the retailer applies their own exchange rate, which often comes with hefty mark-ups and poor value for money. Even with standard credit or debit cards that charge fees for spending abroad, it is highly unlikely that the retailer's exchange rate will be better than your card provider's. This rule is especially important if you have a top overseas card, as their exchange rates are unbeatable.
Edinburgh Live
14-07-2025
- Business
- Edinburgh Live
Jet2, Ryanair, TUI and easyJet passengers issued Euros holiday money warning
Our community members are treated to special offers, promotions and adverts from us and our partners. You can check out at any time. More info A caution has been sounded for thousands of holidaymakers flying with Jet2, Ryanair, TUI and Easyjet this summer regarding the use of Euros abroad. UK tourists are being hit by foreign exchange fees that amount to a staggering £2.5 million annually, especially as the peak travel season gets underway. Travellers are advised to reconsider using standard debit cards due to potential extra costs, with experts recommending specialist travel debit cards from providers such as Wise, Revolut or Currensea instead. These cards can offer significant savings by eliminating bank fees and can be over 0.5% cheaper than fee-free cards and more than 3% less expensive than high street banks' debit card options. Tourists are also urged to steer clear of airport currency exchanges, which are notorious for their exorbitant rates. Personal finance expert Andrew Hagger warns: "Never buy or sell your currency at the airport. You'll lose around an extra £10 for every £100 you spend – just don't do it unless it's an absolute emergency." Laith Khalaf from AJ Bell echoes this sentiment, stating: "Effectively buying money at the airport is a hefty tax on your holiday for not planning ahead." The advice extends to obtaining travel money from the post office, another common choice among travellers. While individual post offices may have varying currency rates, ordering online in advance is almost always guaranteed to secure a better deal, reports Birmingham Live. However, it's crucial to bear in mind that prepaid cards have their drawbacks – particularly when it comes to withdrawing small sums of cash. Certain providers may charge up to £5 for each cash withdrawal transaction overseas, turning it into a costly spending method. Mr Hagger of the personal finance website MoneyComms advised: "If you pay in GBP this allows the overseas retailer or ATM to use an inferior local exchange rate which can prove way more expensive than the normal Visa or MasterCard exchange rates – this is known as Dynamic Currency Conversion."
South Wales Guardian
18-06-2025
- Business
- South Wales Guardian
UK inflation to edge higher if oil prices push up energy costs, experts warn
Experts said that if global oil and gas prices continue to soar then this could drive energy costs higher. The latest figures from the Office for National Statistics (ONS) showed the rate of UK Consumer Prices Index (CPI) was 3.4% in May – slightly higher than the 3.3% forecast by most economists. It came in lower than the 3.5% recorded for April – however, the ONS has since said that that figure was incorrect due to an error in how it initially calculated price rises, and it should have been 3.4%. Inflation remaining elevated was largely due to food prices rising in shops, with items like chocolate, jam and meat spiking last month. Food and non-alcoholic drink prices rose by 4.4% in the year to May – the highest level in more than a year. The end of Easter sales on furniture and homeware is also thought to have contributed to prices jumping across the category between and April and May. On the other hand, air fares, petrol and diesel prices fell between April and May, helping to balance out the overall inflation rate. Experts have said that inflation is set to remain elevated over the coming months, particularly if global oil prices continue to spike. Laith Khalaf, head of investment analysis at AJ Bell, said: 'The escalation of conflict in the Middle East has bumped up the oil price, which will put upward pressure on inflation if sustained.' The price of Brent crude oil has risen to a four-month high in recent days since Israel launched an attack on Iran's nuclear programme and conflict between the two countries has escalated. It has stoked fears over possible disruption to the supply of crude in the Middle East – with Iran a significant exporter of oil, and the potential for oil and gas passing through the Strait of Hormuz to be obstructed. Higher energy prices – which have not been factored into the latest ONS data – threaten to push up inflation in the UK. Rob Wood, chief UK economist for Pantheon Macroeconomics, said he was expecting inflation to 'bounce around these rates for the rest of the year' and to peak at 3.6% in September when energy prices spike. This peak could rise to as much as 3.8% if oil and natural gas prices continue to soar, he said. Matt Swannell, chief economic advisor to the EY Item Club, said: 'Headline inflation is likely to edge upwards over the next few months, and the increase could be more pronounced if the recent rise in Brent crude oil prices is sustained. 'But we expect inflation to cool from October, as the positive contribution from the energy category wanes.' Experts also said that the Bank of England was facing a difficult task in setting interest rates amid price volatility in global markets. Most economists expect the Bank to keep UK rates the same, at 4.25%, when it makes the next announcement on Thursday. Mr Wood said policymakers are likely to 'proceed cautiously' with just one more cut to rates this year, expected in November, amid 'sticky' inflation. Elsewhere, the ONS's data showed the statisticians preferred measure of inflation, Consumer Prices Index including owner occupiers' housing (CPIH), fell to 4% in May from 4.1% in April. Meanwhile, the Retail Prices Index (RPI) rate of inflation fell to 4.3% from 4.5%. However, the ONS said April's RPI figure was also 0.1 percentage points too high, and should have been 4.4%. This happened because of an error that meant the effect of vehicle tax hikes in April was overstated in the data collected for the month. The ONS said it would not be revising the official published figures, in line with its policy which only carries out revisions in exceptional circumstances.
North Wales Chronicle
18-06-2025
- Business
- North Wales Chronicle
UK inflation to edge higher if oil prices push up energy costs, experts warn
Experts said that if global oil and gas prices continue to soar then this could drive energy costs higher. The latest figures from the Office for National Statistics (ONS) showed the rate of UK Consumer Prices Index (CPI) was 3.4% in May – slightly higher than the 3.3% forecast by most economists. It came in lower than the 3.5% recorded for April – however, the ONS has since said that that figure was incorrect due to an error in how it initially calculated price rises, and it should have been 3.4%. Inflation remaining elevated was largely due to food prices rising in shops, with items like chocolate, jam and meat spiking last month. Food and non-alcoholic drink prices rose by 4.4% in the year to May – the highest level in more than a year. The end of Easter sales on furniture and homeware is also thought to have contributed to prices jumping across the category between and April and May. On the other hand, air fares, petrol and diesel prices fell between April and May, helping to balance out the overall inflation rate. Experts have said that inflation is set to remain elevated over the coming months, particularly if global oil prices continue to spike. Laith Khalaf, head of investment analysis at AJ Bell, said: 'The escalation of conflict in the Middle East has bumped up the oil price, which will put upward pressure on inflation if sustained.' The price of Brent crude oil has risen to a four-month high in recent days since Israel launched an attack on Iran's nuclear programme and conflict between the two countries has escalated. It has stoked fears over possible disruption to the supply of crude in the Middle East – with Iran a significant exporter of oil, and the potential for oil and gas passing through the Strait of Hormuz to be obstructed. Higher energy prices – which have not been factored into the latest ONS data – threaten to push up inflation in the UK. Rob Wood, chief UK economist for Pantheon Macroeconomics, said he was expecting inflation to 'bounce around these rates for the rest of the year' and to peak at 3.6% in September when energy prices spike. This peak could rise to as much as 3.8% if oil and natural gas prices continue to soar, he said. Matt Swannell, chief economic advisor to the EY Item Club, said: 'Headline inflation is likely to edge upwards over the next few months, and the increase could be more pronounced if the recent rise in Brent crude oil prices is sustained. 'But we expect inflation to cool from October, as the positive contribution from the energy category wanes.' Experts also said that the Bank of England was facing a difficult task in setting interest rates amid price volatility in global markets. Most economists expect the Bank to keep UK rates the same, at 4.25%, when it makes the next announcement on Thursday. Mr Wood said policymakers are likely to 'proceed cautiously' with just one more cut to rates this year, expected in November, amid 'sticky' inflation. Elsewhere, the ONS's data showed the statisticians preferred measure of inflation, Consumer Prices Index including owner occupiers' housing (CPIH), fell to 4% in May from 4.1% in April. Meanwhile, the Retail Prices Index (RPI) rate of inflation fell to 4.3% from 4.5%. However, the ONS said April's RPI figure was also 0.1 percentage points too high, and should have been 4.4%. This happened because of an error that meant the effect of vehicle tax hikes in April was overstated in the data collected for the month. The ONS said it would not be revising the official published figures, in line with its policy which only carries out revisions in exceptional circumstances.
