Nationwide to hike cost of using debit cards abroad for millions of customers
The building society has increased its overseas fees for withdrawing cash and making card purchases from 2 per cent
NATIONWIDE is to start charging more for using its debit cards abroad.
Millions of customers with the world's biggest building society will now pay 2.75 per cent interest on card purchases and cash withdrawals, up from 2 per cent.
The new rules will apply from Monday, October 8.
It means that if you want to spend £100 on the card abroad, it will actually cost you £102.75.
If you want to withdraw cash, it will cost you an extra £1 on top of that because charges an extra fee for withdrawing cash abroad.
The new rules won't affect customers with FlexOne, FlexStudent and FlexGraduate accounts, which allow for fee-free transactions overseas.
Which are the best debit cards for spending abroad?
MANY debit cards will charge you fees for spending overseas but there are some that don't. Here's our guide to the best fee-free cards:
- Starling Bank: Current account holders won't be charged fees when spending or withdrawing cash abroad.
- Monzo: The pre-paid card won't charge you for card purchases and it will let you withdraw £200 every 30 days for free but there's a 3 per cent charge on anything over that.
- Curve: Curve - which connects your accounts on one card - does not charge interest on card purchases and ATM withdrawals abroad even if your bank accounts linked to the card do charge fees. You can spend fee free up to £500 a month and after that, you will be charged 1 per cent on purchases and withdrawals.
- Metro Bank: Metro Bank jas no fees on purchases or withdrawls in 34 European countries but outside Europe it charges a non-sterling transaction fee of 2.75 per cent.
- Cumberland Building Society: Cumberland Building Society Plus current account holders won't be charged foreign exchange fees or cash withdrawal fees when using its debit card - but you need to live in Cumbria, west Northumberland, north Lancashire or south west Scotland to open an account.
- Travel money cards: Avoid credit and debit card fees by using a travel money card loaded with holiday cash because this won't incur transaction charges.
- Specialist travel credit card: It can pay to use a specialist card - we've picked out the ones with the best rates.
FlexPlus customers won't be charged to withdraw cash abroad, but the 2.75 per cent fee will apply if they buy anything with their Nationwide card.
Nationwide, which has 15 million customers, blamed the fee rise on the increasing cost of providing current accounts.
A spokesman said: "Nationwide regularly reviews its fees and charges and from time to time we have to make changes to ensure we can continue to run a fair and sustainable business.
"The change will remain competitive in the market and will see the Society move in line with the other main current account providers. Members will also continue to benefit from VISA’s competitive exchange rate when spending abroad."
The last time Nationwide raised its fees was in 2010, when it axed its fee-free use of debit cards for overseas purchases and introduced a 2 per cent interest charge as well as a £1 fee for withdrawing cash.
More on Money stories
Nationwide currently pays up to £500 if you recommend five friends to join the building society - that's £100 per pal. Plus they'll get £100 each too.
It's not the only bank offering an incentive to switch, as we reported last month.
Nationwide recently launched a market-leading current account for kids paying 3.5 per cent on savings.
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