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Pick the right plastic for your summer holiday to save a packet

Paloma Kubiak
Written By:
Paloma Kubiak

Many holidaymakers stick to their everyday credit card to pay for goods and services abroad. But by picking the right plastic, you could save around £80 in charges in a fortnight.

It’s pretty normal these days to trawl the internet for the cheapest flights and best value for money hotel when organising a holiday. But when it comes to arming ourselves with the right plastic for the trip, we tend to stick with the credit or debit cards we use at home.

But new research reveals we could save around £6 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.

Andrew Hagger of Moneycomms said that the new MBNA Everyday plus credit card doesn’t charge any foreign currency or cash withdrawal fees, so it “makes a perfect cost-effective holiday companion”.

Other credit cards on his list include the Halifax Clarity Card and Metro Bank credit card for overseas spending, though the latter requires you to open a current account.

Based on a two week summer holiday, the savings stack up to around £80, but can be more.

YM CreditCardTable

At the bottom of the table, the Creation Purchase credit card and Virgin Money All Round credit card 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.

Hagger said the savings “make it worth taking the time to apply for a more suitable card to take away when you travel.”

He added: “Even if you’re only going abroad for a few days the potential savings mean more money in your holiday kitty rather than adding to the profits of the banks.”