Reply to: Bummed by the Banks

[expat]

Mostly right about Halifax Clarity credit card.

....

Mostly? Which bit did I not get right? Serious question.

[SueEllen]

Nationwide Flex Plus - tenner a month - but with (fairly ordinary) breakdown, travel insurance etc, plus some other stuff, no charges for withdrawals anywhere in World, not sure if exchange rate is most favourable but life too short for checking every tick...

Got when I was working in EU don't really need it now but what the hell....

I got a Metrobank account for spending in Europe and it was free. Didn't need the other stuff.

To be honest a simple internet search for a well known money saving website would provide all the information you need for spending in Europe and Worldwide. I did leave out Saga Cards as I'm not in that age group.

[stek]

Nationwide Flex Plus - tenner a month - but with (fairly ordinary) breakdown, travel insurance etc, plus some other stuff, no charges for withdrawals anywhere in World, not sure if exchange rate is most favourable but life too short for checking every tick...

Got when I was working in EU don't really need it now but what the hell....

[I just need to test it]

Yeah. My bank charged £4 and change. Visa charged £5.97.

[SueEllen]

Visa Debit

Most of the mainstream banks charge you a fee for using a debit card abroad regardless of whether it's Visa or MasterCard.

[I just need to test it]

Cash advance fee? (usually applies when using a credit card rather than a debit card to get cash)

Visa Debit

[SueEllen]

Halifax Clarity credit card in particular: no charges for purchases or cash anywhere in the world. The ATM itself may charge, and for cash you wil pay interest from the day you take it out, but it still beats the hell out of any other card I've found; especially outside the EZ.

Nationwide debit card used to be better, at least inside the EU, but now it has a fee; still better than most cards though. Nationwide credit card has no fee on purchases ISTR (and so is better than the debit card there) but has the usual CC fee on cash so not good there.

Mostly right about Halifax Clarity credit card.

If you are in London and the South East get yourself a Metrobank account. Their debit card is fee free in Europe. You just need to go into a "store" with ID and you can get an account there and then with a card and online banking details. You then rarely need to go into a "store" again.

In regards to credit cards never use them to draw cash out of the ATM. Use it to pay stuff in shops, pay bills in restaurants etc in the local currency.

There are a few credit cards that are fee free for this - Halifax Clarity, Metrobank Credit card, Nationwide Select Credit Card and Post Office Credit card. Only Halifax Clarity and Nationwide Select are for worldwide spending.

[Ticktock]

But you still won't be getting the best rate....

There is a reason why I now have a supercard and prepay ukash card. And that is visible as soon as you see the 1.37 rate I'm getting via ukash versus the 1.36 rate first direct are using today...

You're right and I apologise for being such an elitist prick. I've said before, when looking at spending abroad I value my time and lack of effort over the pennies I could potentially save by spending hours researching the best rates and driving to the correct shop that will only offer that rate face to face, etc, as some people advocate.

When taking out €300 that's going to make the world of difference to some people - especially those who take cash withdrawals on their credit cards, as presumably they are living hand to mouth.

[WordIsBond]

I thought there were certain brokers that you could get close to the daily rate?

On a spot trade (one time, not recurring), brokers like HIFX, Caxton, Moneycorp take a margin between 0.75% and 1.5% of the current live interbank rate. It varies on the day and the amount. I checked interbank a minute ago and it was 1.392 euros to the pound, you would get between 1.37-1.38. If they have too many euros, you'll probably get 1.38. If everyone has been buying euros from them, they are going to have to go buy euros to fill your order, so they'll increase their margin.

They usually won't tell you their margin because it isn't fixed. They reduce their margin on large transactions. You could check the current interbank rate and ask several brokers what their current rate is. That will tell you what their margin is today, but not what it will be tomorrow. The best way is to open online accounts with several brokers, and the day you are ready to exchange funds, log in to all of them at once and see which is offering the best deal on that date. HIFX might be better today, Moneycorp better tomorrow.

There will also probably be a fee for transferring the funds to an overseas bank. Ignore the headline exchange rate and make sure you know the net proceeds -- the fee is one piece, the exchange rate the other. If you get a better rate but lose it in fees, you've not done well. On a large transfer, if you do it by phone they might waive the fee, you can always ask.

[Unix]

Did you get a look at the rapist, was it the banks of the Thames?

[FiveTimes]

I've used fairfx.com when in the states and they now offer a Euro card (1.36)

Easy to use and top up if need be.

[psychocandy]

It's a bit late in the day but I have opened a Euro business account as I'm being paid in Euros. I hope the currency exchange gods look kindly upon me.

currencyfair.com as well

[psychocandy]

I was abroad earlier this month. I needed cash so drew 300 Euros out of the ATM thinking "Ahh, I might get stung for this". I did. A tenner charge. 2.5% charge from First Direct, plus 2.75% from Visa. It won't ruin me and as much as it's my own fault for not checking I do begrudge them hitting me quite that hard.

And just now I check my Cater Allen business account and see my invoice payment was done using the worst Euro->Sterling exchange rate in living history. I check with them and find they had mistakenly processed my invoice payment using the US dollar exchange rate. WTF?

Anyway. As you were.

Cater Allen - surely you've got a sterling account and a euro account with them? Much cheaper.

And when cater allen screw up they do screw up big time imho.

[eek]

You're all doing it wrong.
When abroad, buy using your credit card, take out cash using your bank debit card. You know, the same as you would when in the UK.

You do not get ridiculous fees if you don't do ridiculous things like taking cash out on a credit card

But you still won't be getting the best rate....

There is a reason why I now have a supercard and prepay ukash card. And that is visible as soon as you see the 1.37 rate I'm getting via ukash versus the 1.36 rate first direct are using today...

[Platypus]

2.75% from Visa

Cash advance fee? (usually applies when using a credit card rather than a debit card to get cash)