Pick the right cards for holiday to save £100 in fees

0
Written by: Paloma Kubiak
02/06/2017
Many holidaymakers stick to their everyday cards to pay for goods and services abroad. But picking the right plastic can save you about £100 in charges in a fortnight.

Savvy consumers shop around for the cheapest flights and hotels when organising a holiday. But when it comes to spending money, all the good work can be undone by paying abroad with the credit or debit cards we use at home.

Research reveals holidaymakers could save about £5 for every £100 currency equivalent ATM withdrawal and around 3% on every purchase made on a specialist credit card that doesn’t charge for overseas use or cash withdrawal fees.

As a result, a typical family going on a two week summer holiday spending £2,250 through a combination of cash withdrawals and purchases could save themselves £99.37 picking the right debit card and £104.78 by choosing the right overseas credit card.

Andrew Hagger of Moneycomms revealed the Metro Bank’s European charge-free card tops the debit card best buy tables, while it also sits firmly in joint first place in the credit card tables along with the Halifax Clarity card and the Creation Everyday credit card. However, the Metro Bank offering is only available to those who hold its current account.

Some of the worst and most expensive debit cards for overseas use are offered by the Halifax, TSB and Lloyds. On the credit card side, Hagger’s research found the Creation Purchase credit card and Virgin Money All Round credit card both charge 2.99% on purchases and cash withdrawals, plus a 5% ATM fee (minimum £5).

Based on a family two week summer holiday, you could end up paying nearly £105 on cash withdrawals and purchases by using the wrong plastic.

The tables below list the best and worst debit and credit cards for overseas use (click to enlarge):

DebitCardOverseas OverseasCreditCard

Hagger said it’s surprising how much the wrong plastic can end up costing you when you use it outside the UK.

“If you’re not sure what your bank charges then take a look before you travel as it may be worth picking up a currency card instead – it could prove a very cost-effective choice as it will eat up less of your precious holiday spending cash in charges.

“The only issue with currency cards is that they are very difficult for the consumer to compare due to various different tariffs and confusing jargon – also watch out for some currency cards as if you bring them home with a balance still on and don’t use them for 12 months, many will charge you a £2 per month inactivity fee until you use it again so you could get a nasty surprise if it’s not been used for a couple of years, for example,” he said.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
uk shares
Investors urged to be cautious on UK equities

Fund managers and advisers are calling for caution on UK equities, with some raising cash levels significantly as political risks...

Close