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Scottish Sun
10-05-2025
- Business
- Scottish Sun
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 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 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 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@ Advertisement Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories
Yahoo
06-02-2025
- Business
- Yahoo
Loyalty to account providers does not pay, savers warned following base rate cut
Savers are being warned that loyalty to their account provider does not pay, following Thursday's base rate cut. According to financial information website the average easy access savings rate on the market at the start of February was 2.92%, down from 3.17% a year earlier. The Bank of England base rate was cut by 0.25 percentage points to 4.5% on Thursday, sparking calls for savers to shop around to grab the top deals while they can. Rachel Springall, a finance expert at said: 'Savers who rely on their cash savings to boost their income are at the mercy of lower interest rates. 'It has already been proven that cuts to the Bank of England base rate set the wheels in motion for the biggest banks in the country to cut rates, showing loyalty does not pay.' Andrew Hagger, founder of said: 'Savers will see easy access savings rates edging lower, so should check out the best buys and switch to a better rate if their bank is offering a sub-standard deal. 'If you're thinking of putting some cash away for a year or two in a fixed-rate bond or Isa, now would be a sensible time to lock in at current levels while you still can.' Sarah Coles, head of personal finance, Hargreaves Lansdown, said the rate cut could 'blow some of the froth off the easy access cash Isa market', which she said 'has been incredibly competitive recently, with plenty of banks offering more on easy access cash Isa then their equivalent savings accounts'. 'We could see the number of deals over 5% pull back, despite the fact that we're heading firmly into the traditional Isa season.' The reduction also comes at a time when Starling Bank is set to remove the interest rate paid on personal and joint current accounts on February 10. People can still earn interest on balances up to £5,000 until that date. The bank has launched an Easy Saver, which customers can make deposits in from their personal current account, earning 4% AER (annual equivalent rate) variable on balances of up to £1 million. A rate of 3.25% AER has been paid on balances up to £5,000 on its current account. Starling said customers were notified in November 2024 and can still benefit from the account's other features. All Starling Bank personal current account customers can apply for an Easy Saver account, with the ability to open one being subject to meeting eligibility criteria. Alastair Douglas, TotallyMoney chief executive officer, said: 'Just remember that loyalty doesn't pay, but moving your money can.'
