Exact date this month high street bank with 3million customers to start charging fees to use debit card abroad

A MAJOR high street bank with millions of customers is axing fee-free debit card use and ATM withdrawals this month.

Metro Bank is set to introduce a 2.99% fee on all debit card transactions made outside the UK from August 30 - including Europe, where it is currently free.

Customers withdrawing cash anywhere abroad will pay the new 2.99% fee plus an additional £1.50 ATM fee.

Metro Bank, which opened its first UK branch in 2010, lets its three million customers spend on their debit cards and make cash withdrawals in a foreign currency in Europe fee-free.

But in an email sent in late June, it said this policy would be ditched.

The email read: "After August 29 2024, debit card payments made in a foreign currency outside the UK will be charged 2.99% on the converted British Pound value of the transaction.

"After August 29 2024, cash withdrawals made in a foreign currency using your debit card outside the UK will be charged 2.99% on the converted British Pound value plus £1.50 ATM fee.

"This charge is applicable for each transaction you make."

The change means customers sticking with the bank could quickly see costs rack up while abroad.

For example, anyone spending £100 on their card from August 30 will pay £3 in fees. Spend £200 and this will rise to £6.

Anyone withdrawing cash from an ATM will incur the £2.99 fee and additional £1.50 withdrawal fee.

A spokesperson for Metro Bank previously told The Sun: "Over time, we’ve seen our customer’s needs and expectations evolve and the demand for this service has been declining over a number of years.”

What other banks charge

First Direct

First Direct does not charge fees for using a debit card to make a payment in a foreign currency or for making a cash withdrawal in another country.

There is a daily cash withdrawal limit of £500 (or the foreign currency equivalent) at ATMs.

HSBC

Customers with a HSBC Global Money Account can spend abroad and withdraw from cash points fee-free.

Global Money accounts are available to any HSBC customers with an active current account and its banking app.

Other debit card customers are charged 2.75% while credit cards incur a 2.99% fee.

Lloyds Bank

Lloyd’s Silver and Platinum account customers have been able to use their debit card anywhere in the world free of charge from July 1.

However, the Silver Packaged Bank Accounts costs £11.50 a month while the Platinum option costs £22.50 a month.

Monzo Bank

Monzo says customers can pay anywhere and in any currency on their debit card with no foreign transaction fees.

And if Monzo is your main bank account, you can make unlimited fee-free withdrawals in the European Economic Area (EEA), and up to £200 every 30 days anywhere else. After that, the bank charges 3%.

Santander

If you have the Santander Edge, Santander Edge Up and Private Account debit cards, you can withdraw money fee-free and you won’t get foreign transaction fees on spending while away.

All other accounts with Santander charge 2.95% for both purchases and withdrawals.

Starling Bank

Starling doesn’t charge for using your debit card while abroad.

TSB bank

If you have a TSB Spend and Save Plus account, you will pay no fees on debit card transactions worldwide.

Other account holders will pay 2.99% in fees on transactions, and 1.5% fees on any money withdrawn.

There are no fees for making a cash withdrawal in Euros from a cash machine in an EEA country.

You can read our full guide to other banks which don't charge fees on foreign transactions here.

How else to save money on holiday

One sure-fire way of forking out more than you should on holiday money is using a Bureau de Change at the airport.

These usually offer the worst rates around so your best bet is shopping around online and buying days in advance.

Always pay in the local currency to get the best rate too.

This means if you are in the Eurozone opt to pay in euros, not pounds or, if you are in the US, pay in dollars.

If you do have a debit card that charges you a foreign transaction fee, try to withdraw all your money at once so you're not hit with multiple charges.