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Telegraph
23-05-2025
- Business
- Telegraph
The best bank cards to use abroad
Before going abroad, it's important to make sure you have the best payment card with you, or your holiday spending could quickly start racking up hefty fees. Some providers issue fees of around 3pc added to all foreign purchases, and ATM withdrawals can also attract instant fees and interest. Fortunately, a range of debit and credit cards offer fee-free spending and cash withdrawals abroad. Some even offer additional perks including cashback, meaning banks will pay you to spend rather than the other way around. Rachel Springall, of financial analyst Moneyfacts, said: 'Holidaymakers looking to make their cash go further should apply for a credit card designed for use abroad, or open a current account with a debit card which does not charge for making withdrawals.' Here, Telegraph Money takes a closer look at the best bank cards to take on your next holiday. Top travel credit cards The key to finding a good travel credit card is making sure it doesn't charge foreign spending fees. You may prefer to use a credit card while abroad due to the Section 75 protection they offer. If something goes wrong, you can reclaim the value of purchases between £100 and £30,000 from your credit card provider. 1. Barclaycard Rewards Card Andrew Hagger, of personal finance website MoneyComms, said: 'Unlike most credit cards, Barclaycard Rewards doesn't charge any fees or interest charges on purchases overseas or cash withdrawals, provided you pay your statement in full by the due date.' As a small added bonus, you also get 0.25pc cashback on your spending. Applicants for this card must be over 21, and have a minimum annual income of £20,000. It has a representative APR of 28.9pc based on a £1,200 credit limit. 2. Halifax Clarity credit card. Halifax's Clarity card is another favourite with holidaymakers, as there is no exchange rate mark-up for purchases or ATM transactions. That said, you will pay up to 28.94pc interest on any cash withdrawals. This begins the moment they are made. Mr Hagger added: 'On a £100 ATM withdrawal, this will work out at around £2.30 over 30 days.' Top travel debit cards There are several debit card options to use abroad too; the best ones will also let you spend and withdraw cash fee-free. 1. Chase current account The debit card from Chase is fee-free for spending at home or abroad, and pays you 1pc cashback on most purchases, even when you're away. This means that for many, it's likely to be the best pick for which card to use abroad. Chase lets you take out up to £500 per day, and £1,500 per month. 2. Monzo current account Spending and cash withdrawals abroad are fee-free with Monzo, but there may be limits to the amount of cash you can withdraw before fees kick in. If Monzo's free account is not your main bank: £400 fee-free every 30 days in the UK and EEA, 3pc afterwards; £200 fee-free every 30 days outside EEA, 3pc afterwards If Monzo's free account is your main bank: Unlimited fee-free withdrawals in UK and EEA; £200 fee-free every 30 days outside EEA, 3pc afterwards Monzo Plus (comes with monthly fees): Unlimited fee-free withdrawals in UK and EEA; £400 fee-free every 30 days outside EEA, 3pc afterwards Monzo Premium, Perks and Max (comes with monthly fees): Unlimited fee-free withdrawals in UK and EEA; £600 fee-free every 30 days outside EEA, 3pc afterwards. 3. Starling current account Starling is another popular app-only bank. Again, no fees are charged on spending or cash withdrawals when you're abroad – but ATM withdrawals are capped at £300 a day. 4. Currensea If you don't want to take out a new credit card or open a new bank account, Currensea might be a good option. Mr Hagger says: 'Currensea provides you with a Mastercard that you link to your existing current account. The beauty is, you don't have to worry about pre-loading with euros or dollars before you set off.' According to its website you cannot yet link up with Co-op Bank, Metro Bank, Danske Bank or the Bank of Ireland. There are three price plans to choose from. The essential package has no annual fee, but charges 0.5pc foreign exchange charge on both purchases and ATM withdrawals. There are no additional charges for the first £500 cash withdrawals each month, but anything above this monthly limit attracts a 2pc fee. The premium plan is £25 annually and the elite plan costs £120 per year. Mr Hagger said these might suit frequent travellers as they come with lower foreign exchange rates and additional features. Are credit or debit cards a better option to use abroad? Both credit and debit cars are viable options for using abroad, but there are pros and cons for each. Credit cards are useful for deposits when preparing to travel, for example if you are renting a car. If you're travelling for business, a credit card may also be the better option thanks to the increased protection and insurance, longer payment terms and the opportunity to earn points. For all travellers, credit cards offer more robust protection against fraud and scams. However, if you have a debit card with one of the challenger banks, such as Monzo or Starling, you can spend fee-free. In this case, a debit card may be the better option but it's worht checking the terms before you jet off. How much could a travel bank card save you? Depending on how long your trip is, foreign transaction fees could potentially add hundreds of pounds to your holiday spending. There are three charges that could be added to your foreign transactions by your credit or debit card provider: non-sterling transaction fee ATM fee spending charge. Some might charge just one of these, while others will charge all three. For credit or debit card purchases – such as buying a meal at a restaurant – non-sterling transaction fees are usually around 3pc. This may be charged in addition to a spending charge, which is usually between 50p and £1.50. Paying £100 for a meal while you're away, for example, could therefore cost you up to £104.50 once the additional costs are added. These fees can seriously add up, especially when making smaller purchases. If you make five transactions in a day, you could be looking at £7.50 in spending charges alone, plus the non-sterling transaction fee. ATM fees vary between providers, but you could end up paying a cash advance interest – and in some cases this is charged every day until you pay it off. A non-sterling cash fee is usually around 3pc, with a minimum charge of £3. This means even a small cash withdrawal of £20 could cost £23 plus interest. The good news is, there are lots of ways to avoid these charges altogether – you just need to have the right card for the job. FAQs Are there benefits to using a prepaid travel card? Prepaid cards can work well if you want to stick to a strict budget on your trip, as you can load up the card before you go – either in sterling or your chosen currency – and then it's ready to spend while you're away. Some popular options include: Post Office Travel Money Card. It allows you to carry up to 22 currencies, and can be managed via an app should you want to move your cash around. It also syncs up with Apple Pay and Google Pay if you want to make transactions via your phone or smartwatch. You'll use the Post Office exchange rate and there are no spending charges. FairFX multi-currency card is another good alternative, as there is no exchange rate mark up for the 21 currencies available to load on the card. There is, however, a £1 fee on all ATM withdrawals. Another fee to watch out for is inactivity fees. This card charges £2 per month on any remaining balance if it's left loaded after its expiry date. EasyFX card doesn't charge for ATM withdrawals or to load your card. However, if you lose it and need a replacement there is a £6 charge, and it will also take £2 per month if the card hasn't been used for more than 12 months. Always spend in the local currency If you're given the option of paying in sterling, as opposed to the local currency, whether you're in a shop, restaurant or other outlet during your holiday, you should always say no. Opting to pay in sterling means you're giving the card payment provider the chance to decide the exchange rate, via a process known as 'dynamic currency conversion'. The rate is unlikely to be in your favour. Matt Sanders, of Money, said: 'In most cases you will get a better currency rate from your card provider, so if you are presented with the option of paying in pounds, opt against it, as it may cost you more.' Is it worth taking any cash with you? Wind the clock back 10 or 20 years ago, and hardly anyone would be considering regularly using your debit or credit card abroad – instead, travel wallets would be stuffed with foreign currency, and even a few traveller's cheques. Cash use is in decline in the majority of holiday destinations, but is it still worth taking at least a little cash with you? This will largely depend on the destination; you probably won't need as much cash if you're visiting Sweden than, say, a remote town that is yet to catch up with the contactless revolution. 'There's not a great need to carry a large quantity these days,' said Mr Hagger, 'although some people like to carry a little for tipping taxi drivers, room cleaners or in bars or restaurants.' What happens if my card is lost or stolen while travelling? It can be stressful if your card is lost while travelling, but you have options. The first thing to do is to tell your bank that it has been lost or stolen, to ensure no one else can access your money. Emergency phone lines are generally open 24 hours a day, seven days a week. But you may be charged for calls made outside of the UK. Many banks offer access to emergency cash while you're abroad. Barclays promise that funds will reach you within three days, for instance. It can be a good idea to tell your bank where you are going before your travels to prevent normal activity alerting fraud monitoring systems as suspicious.
Daily Mail
22-05-2025
- Business
- Daily Mail
Landlord mortgage rates plummet with HSBC, NatWest and TMW making cuts
Landlords are benefiting from a spate of mortgage rate cuts, with brokers suggesting now could be a good time to lock in a new deal. This week, HSBC cut its market-leading buy-to-let mortgage rates even further. The bank lowered deals by up to 0.25 percentage points, leaving landlords buying or remortgaging in their own name with some tantalising options. Its lowest buy-to-let rate for someone remortgaging at 60 per cent loan-to-value is now 3.74 per cent with a £3,999 fee. The two-year fixed rate deal would mean a landlord remortgaging a £200,000 loan on an interest-only basis could expect to now pay £635 per month, with the fee added to the mortgage. This is a far cry from the average buy-to-let rates being cited by rates scrutineer, Moneyfacts. It says the average five-year fixed buy-to-let mortgage charges 5.29 per cent while the typical two-year fix charges 4.99 per cent. Someone with a £200,000 interest-only mortgage on the average rate could expect to pay £832 on a two-year fix and £882 on a five-year fix. HSBC is also offering buy-to-let purchase rates as low as 3.84 per cent on a five-year fix, if the investor has a 40 per cent deposit and can stomach a £3,999 fee. Those wishing to buy with a 25 per cent deposit can secure a rate of 3.94 per cent with HSBC, again with a £3,999 fee. HSBC is offering lower fee options which may work out cheaper depending on the mortgage amount required. You can work out the true cost of rates and fees using This is Money's mortgage calculator. Another lender to cut rates recently is NatWest. It is now offering a 4.1 per cent rate with a £995 fee for landlords buying with a 40 per cent deposit. For those buying with a 25 per cent deposit, it is offering 4.33 per cent with a £995 fee. Aaron Strutt, of mortgage broker of Trinity Financial, said: 'Mortgage lenders have been busy lowering their buy-to-let rates for quite a while now as they try to tempt landlords to take their deals. 'There are lots of high fee and low rate products designed to help landlords either get sufficiently large mortgages, or ease their cashflow when they remortgage. 'We are still arranging a fair few buy to let mortgages, often for landlords buying in the north of England or through a limited company. 'There are a lot of remortgages coming up as well and landlords are clearly keen to get the cheapest possible rates. 'This often means they switch to a new lender because there is so much competition in the market.' Low rate, high fee mortgages gain popularity The Mortgage Works (TMW), which is the buy-to-let lending arm of Nationwide Building Society, also lowered its buy-to-let rates last week. It is now offering a 2.79 per cent two-year fix with a fee equal to 3 per cent of the loan, for those buying with a 35 per cent deposit. On a £200,000 interest-only mortgage that would work out at £468 a month with a £6,000 fee. Adding the fee to the mortgage would equate to £480 a month. 'This is a great product for landlords needing to remortgage and avoid a repayment shock, even though it has a chunky fee,' said Strutt. 'One of our clients just took a similar low-rate and high-fee buy-to-let deal because she had equity in her buy-to-let property and used the rent to supplement her income. 'This product isn't for everyone, and the fee is high, but the headline rate is ridiculously low, which certainly helps many landlords who want to maintain their cash flow. 'The rate is equivalent to 4.29 per cent with the fees included.' This low fee and high rate combination appears to be becoming more widespread. One lender, Capital Home Loans, has a 2.35 per cent fixed rate deal with a 7 per cent fee. But most lenders offer the choice between a 'high fee and low rate' or a 'no fee and higher rate' alternative. For example, buy-to-let lender BM Solutions has a 4.32 per cent two-year fixed rate with no fees at 50 per cent loan-to-value and a 2.93 per cent buy-to-let rate at 50 per cent loan-to-value with a 3 per cent product fee. 'Lenders have been constantly lowering their buy-to-let rates to try and attract landlords and we are now at the stage where rates are often cheaper than the residential rates,' added Strutt. 'Historically, buy-to-let rates have always been higher than the residential deals, but these sub-3 per cent products show how keen the lenders are to issue more mortgages to landlords. 'Many of the high fee and low rate buy-to-let mortgages have been designed to help landlords access larger loans. 'In many cases rental properties do not generate enough rent for landlords to access the loan sizes they need to buy or remortgage, especially when capital raising.' Best mortgage rates and how to find them Mortgage rates have risen substantially over recent years, meaning that those remortgaging or buying a home face higher costs. That makes it even more important to search out the best possible rate for you and get good mortgage advice. Quick mortgage finder links with This is Money's partner L&C > Mortgage rates calculator > Find the right mortgage for you To help our readers find the best mortgage, This is Money has partnered with the UK's leading fee-free broker L&C. This is Money and L&C's mortgage calculator can let you compare deals to see which ones suit your home's value and level of deposit. You can compare fixed rate lengths, from two-year fixes, to five-year fixes and ten-year fixes. If you're ready to find your next mortgage, why not use This is Money and L&C's online Mortgage Finder. It will search 1,000's of deals from more than 90 different lenders to discover the best deal for you.
Rhyl Journal
21-05-2025
- Business
- Rhyl Journal
Fixed bond and ISA rates drop considerably across spectrum
Rachel Springall, Finance Expert at Moneyfacts, said: 'Savers will be disappointed to see all fixed rates fall across the spectrum month-on-month, which has not occurred for six months. "The reduction in the average longer-term fixed bond and ISA rates noted the most significant falls for over six months, and is a disheartening turn of events after they rose above 4% at the start of April. BBC reporting that Chancellor Reeves has ruled out reducing the £20,000 annual limit on money being paid into a cash ISA. So those with lots of £20,000s waiting to go to tax free savings can schedule annual payments! Find best deal and fix for a year if you can (currently 4.27%) "This demonstrates the volatility in future rate expectations, with rates expected to fall even further due to the recent cut to the Bank of England base rate. Those savers who prefer to lock into a short-term fixed deal will find the average one-year fixed bond rate fell by the biggest margin since October 2024 and that the rate has fallen by 0.47% year-on-year. "The volatility surrounding the shelf-life of a fixed-rate bond has escalated, falling to 36 days, down from 46 a month prior. Despite a fall in rates, fixed bonds and ISAs will still appeal to savers who want a guaranteed return on their investment. 'Those savers looking for a flexible pot for their cash will find the average return on an easy access account rose to 2.78%, but any calls for celebration are unlikely to last due to the base rate cut. "Easy access accounts remain a firm favourite among savers, and encouragingly for them, they will find challenger banks are particularly active in this space, which now includes some new arrivals, such as Spring, part of Paragon Bank. "The total number of providers rose as a result, to a new record high. Savers looking to protect their hard-earned cash from tax may be pleased to see a widening in the pool of cash ISAs, where there are now 616 options, a new record high. Recommended reading: 'There was a notable mad dash of providers improving rates to draw in deposits before the end of the 2024/25 tax year. However, as may be expected, cash ISA rates have since fallen, but savers would be wise to take advantage of their ISA allowance regardless of any rate volatility in the months to come. "Cash ISAs will no doubt be popular as millions of people are expected to pay higher-rate tax at 40% this tax year, which will see their £1,000 Personal Savings Allowance (PSA) effectively halve to £500 as a result. "Savers must make every effort to review their pots and shop around for a better deal as providers jobs" target="_blank">work hard to entice new business.'
South Wales Guardian
21-05-2025
- Business
- South Wales Guardian
Fixed bond and ISA rates drop considerably across spectrum
Rachel Springall, Finance Expert at Moneyfacts, said: 'Savers will be disappointed to see all fixed rates fall across the spectrum month-on-month, which has not occurred for six months. "The reduction in the average longer-term fixed bond and ISA rates noted the most significant falls for over six months, and is a disheartening turn of events after they rose above 4% at the start of April. BBC reporting that Chancellor Reeves has ruled out reducing the £20,000 annual limit on money being paid into a cash ISA. So those with lots of £20,000s waiting to go to tax free savings can schedule annual payments! Find best deal and fix for a year if you can (currently 4.27%) "This demonstrates the volatility in future rate expectations, with rates expected to fall even further due to the recent cut to the Bank of England base rate. Those savers who prefer to lock into a short-term fixed deal will find the average one-year fixed bond rate fell by the biggest margin since October 2024 and that the rate has fallen by 0.47% year-on-year. "The volatility surrounding the shelf-life of a fixed-rate bond has escalated, falling to 36 days, down from 46 a month prior. Despite a fall in rates, fixed bonds and ISAs will still appeal to savers who want a guaranteed return on their investment. 'Those savers looking for a flexible pot for their cash will find the average return on an easy access account rose to 2.78%, but any calls for celebration are unlikely to last due to the base rate cut. "Easy access accounts remain a firm favourite among savers, and encouragingly for them, they will find challenger banks are particularly active in this space, which now includes some new arrivals, such as Spring, part of Paragon Bank. "The total number of providers rose as a result, to a new record high. Savers looking to protect their hard-earned cash from tax may be pleased to see a widening in the pool of cash ISAs, where there are now 616 options, a new record high. Recommended reading: 'There was a notable mad dash of providers improving rates to draw in deposits before the end of the 2024/25 tax year. However, as may be expected, cash ISA rates have since fallen, but savers would be wise to take advantage of their ISA allowance regardless of any rate volatility in the months to come. "Cash ISAs will no doubt be popular as millions of people are expected to pay higher-rate tax at 40% this tax year, which will see their £1,000 Personal Savings Allowance (PSA) effectively halve to £500 as a result. "Savers must make every effort to review their pots and shop around for a better deal as providers jobs" target="_blank">work hard to entice new business.'
South Wales Argus
21-05-2025
- Business
- South Wales Argus
Fixed bond and ISA rates drop considerably across spectrum
Rachel Springall, Finance Expert at Moneyfacts, said: 'Savers will be disappointed to see all fixed rates fall across the spectrum month-on-month, which has not occurred for six months. "The reduction in the average longer-term fixed bond and ISA rates noted the most significant falls for over six months, and is a disheartening turn of events after they rose above 4% at the start of April. BBC reporting that Chancellor Reeves has ruled out reducing the £20,000 annual limit on money being paid into a cash ISA. So those with lots of £20,000s waiting to go to tax free savings can schedule annual payments! Find best deal and fix for a year if you can (currently 4.27%) — Paul Lewis (@paullewismoney) May 20, 2025 "This demonstrates the volatility in future rate expectations, with rates expected to fall even further due to the recent cut to the Bank of England base rate. Those savers who prefer to lock into a short-term fixed deal will find the average one-year fixed bond rate fell by the biggest margin since October 2024 and that the rate has fallen by 0.47% year-on-year. "The volatility surrounding the shelf-life of a fixed-rate bond has escalated, falling to 36 days, down from 46 a month prior. Despite a fall in rates, fixed bonds and ISAs will still appeal to savers who want a guaranteed return on their investment. 'Those savers looking for a flexible pot for their cash will find the average return on an easy access account rose to 2.78%, but any calls for celebration are unlikely to last due to the base rate cut. "Easy access accounts remain a firm favourite among savers, and encouragingly for them, they will find challenger banks are particularly active in this space, which now includes some new arrivals, such as Spring, part of Paragon Bank. "The total number of providers rose as a result, to a new record high. Savers looking to protect their hard-earned cash from tax may be pleased to see a widening in the pool of cash ISAs, where there are now 616 options, a new record high. Recommended reading: 'There was a notable mad dash of providers improving rates to draw in deposits before the end of the 2024/25 tax year. However, as may be expected, cash ISA rates have since fallen, but savers would be wise to take advantage of their ISA allowance regardless of any rate volatility in the months to come. "Cash ISAs will no doubt be popular as millions of people are expected to pay higher-rate tax at 40% this tax year, which will see their £1,000 Personal Savings Allowance (PSA) effectively halve to £500 as a result. "Savers must make every effort to review their pots and shop around for a better deal as providers jobs" target="_blank">work hard to entice new business.'
