When you are overseas, hidden charges for withdrawing money or for using debit or credit cards can quickly add up.
Watching out for these types of charges can save a considerable sum, especially since some of the major lenders have scrapped their accounts that offered free overseas spending.
Metro Bank has announced it will start charging for debit and credit transactions that take place outside of Europe from the middle of March.
Furthermore, the Norwich and Peterborough Building Society recently scrapped its Gold Light current account that did not charge when used overseas.
Getting your affairs in order
Many of these perks are being removed, so it’s important to ensure you are aware if any charges might be applicable to your accounts.
For instance, Metro Bank debit and credit card holders will be charged 1.90% for purchases outside of Europe, while cash withdrawals will include an additional ATM fee.
That means withdrawing cash could cost £2.90 for a £100 transaction, which further highlights the importance of checking bank charges before jetting off on holiday.
The last thing you’ll want is a nasty shock upon your return, so it is important to adopt a different spending pattern if necessary.
Fewer transactions will ultimately save money, while there are also other ways of managing your finances.
Some banks and building societies will not charge for using their services abroad, although many of the accounts have terms and conditions that need to be met.
It’s therefore very important to do some research and find out what offers and limits each account has with regards to international usage.
The merits of a prepaid card option
Alternatively, a prepaid card avoids currency exchange costs and additional fees, while also meaning you know exactly what is being spent.
This allows for easy budget management and as the card is not connected to a bank account, there is virtually no risk of fraud or theft.
Most cards can be topped up prior to travel, while additional funds can be added while abroad, but it is always wise to be wary of cards with monthly charges and inactivity fees.
Careful management of finances can prevent any surprises upon your return from a holiday, while it can also provide a little more to spend when abroad.
Taking care when purchasing and knowing what sorts of charges to expect can help to prepare you for how to deal with any events that could ruin your trip.
