HOLIDAYING abroad can be expensive enough without the fear of being charged to use your debit card.
Many debit cards come with a non-sterling transaction fee and cash withdrawal fee if used outside the UK.
The fees can be a nuisance, especially if you’re on a tight budget and looking to save money.
But there are some banks and building societies that don’t apply the additional fees.
First Direct recently scrapped its fees for processing debit card payments in foreign currency and withdrawing cash in foreign currency.
It joined a number of others. Here’s the full list:
First Direct
Since June 28, First Direct has stopped charging customers for making payments in foreign currency while abroad.
The charge for withdrawing money in foreign currency, or from a cash machine outside the UK, has also been dropped.
Before June 28, people had to pay a 2.75% fee in both scenarios.
It’s worth noting, there is still an ATM card limit of up to £500 when making withdrawals abroad.
You can sign up to a First Direct account on the bank’s website.
HSBC
HSBC customers can avoid paying fees abroad and in the UK if they sign up to the bank’s Global Money Account.
You can also send up to £50,000 per day in over 60 currencies to more than 200 countries fee-free.
You can only apply for the Global Money Account if you have an active HSBC UK current account and an email address on record.
You can sign up for a HSBC current account on its website.
Chase
Anyone with a Chase direct debit card can make payments or withdraw cash outside the UK without being charged fees.
However, there is a cash withdrawal limit of £500 each day.
Any purchases abroad have the current Mastercard exchange rate applied.
Meanwhile, you may be charged additional fees by local banks when using their cash machines.
You can sign up to a Chase account on the bank’s website.
Starling
Challenger bank Starling offers fee-free debit card withdrawals and payments made in local currency when abroad.
It also passes on Mastercard’s real exchange rate and doesn’t add anything on top.
You can only withdraw up to £300 every day though.
You can sign up for a Starling debit card on the bank’s website.
Monzo
Another challenger bank, Monzo, also lets customers use their debit card in certain countries abroad without applying additional fees.
It also passes Mastercard’s exchange rate directly on.
You can make unlimited fee-free cash withdrawals if you’re in the European Economic Area (EEA).
However, outside this area you can withdraw up to £200 every 30 days for free. If you go over this amount you are charged 3%.
Again, you can sign up for a Monzo account on the bank’s website.
Cumberland Building Society
Cumberland Building Society doesn’t charge customers using its debit cards outside the UK.
This includes when you use Apple Pay to carry out transactions.
But you have to tell the building society if and when you plan on using it abroad, and where you are travelling to.
You can sign up for one of its debit card accounts on its website.
How else to save money using cash abroad
Opting for debit cards that don’t charge you for foreign transactions is one way to save cash when holidaying.
But there’s a few other tricks you can employ to cut back on costs.
If you’re exchanging cash into a foreign currency, you’ll want to buy ahead from a bureau de change.
Don’t buy cash at the airport on the day as these types of kiosks offer some of the worst rates.
Next, if you don’t have a debit card where you’re not charged foreign transaction fee, you can always buy a prepaid card.
Make sure you choose your card carefully though as some apply hefty fees. Revolut, Wise and Travelex are all worth checking out.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
You can also join our new Sun Money Facebook group to share stories and tips and engage with the consumer team and other group members.
