Holiday Euros

Just in case there was any confusion this will be done with a Switch card bearing the Maestro logo and is from a normal private current account. No credit cards involved.

HSBC charged me something like 1.5%, minimum £1.50. I wasn't really paying much attention to the euro exchange rate, but I can say this worked out worse than the cash I took with me. Which I got from the PO, over the counter, no waiting, at what seemed a sensible rate with no charges. They have ready made-up bags of euros and US dollars. If you have a Lloyds or Barclays debit card (I think those were the two), you could just swipe it at the counter. Otherwise a quick trip to the nearest ATM and cash will do nicely.

Ok, so if the charges are so high..what is the benefit of drawing your money when you are there from the ATM? If it helps it will be the Yorkshire Bank and probably drawn from a Bank of Ireland.

Convenience of not having to carry a lot of cash. Most banks charge something like 1.5% with a minimum of 2 of amount withdrawn. In addition the exchange rate they use is loaded by around 2.75% above the interbank rate you see in financial pages and on Ceefax page 241. So the total charge and commission amounts to around 4.25%. If you bank with Nationwide, they charge nothing for withdrawals and add nothing to exchange rate, other than the 1% levied by Visa/Mastercard for processing foreign transactions. By far the cheapest way to access your cash. It's too late to open an account for your trip, but perhaps for the next one. Some banks have reciprocal arrangements with foreign banks for reduced or no charge (other than exchange rate loading). It's worth finding out. Also watch out for special offers in high street from travel agents, POs and exchange bureaux. M&S at their bigger branches sell currencies at competitive rates and no commission. Also use your credit cards for purchases (they are accepted just as readily as in UK).

Alec

I recommend you move from Yorkshire Bank. It is consistently in the lower half, more often near the bottom of league tables on all of its products.

I guess you will find that Yorkshire Bank charges are high, however i don't know, so i recommend you do the research so you know for now and for future trips.

The benefit of drawing the money out of an ATM is convenience and not having to worry about the big wad in your pocket while travelling. Someone suggested the PO. Well if its anything like my local PO, i'd pay between

10-20 for the convenience of not having to make a special trip into town and wait in line for about 20 minutes.

I have always found the ATM a lot cheaper than say Thomas Cook. I don't know about the PO but when you actually do the sums you will find that the value you are talking about is only a couple of pounds, that is if you don't take the money out of the ATM 10 at a time.

Once you take money out the ATM abroad once, you will always do so.

Ok, thanks for the advice everyone. If we were to use the ATM we would do so for one transaction only so to minimise the fees, if any. Someone mentioned the Nationwide, I do have a Nationwide card cash account, would the same benefits apply to the basic Flex account?

In another thread Ronald suggested changing money with someone who wants sterling and avoiding the system all together. As it happens my Father has just moved back to Ireland but still needs sterling for his affairs over here. He has suggested tonight that he gives me my Euros. I guess this would be the best bet of all?

What 'products' do you buy from your bank?

All I buy is a current account and for that, the service that I get is a much more important part of the whole package that the (relatively negligible) cost. I don't actually use them but I believe that YB scores quite highly on service indicators (at least it used to)

If I want other financial products I shop around for the best deal I can get and if that's not my 'bank', then they don't get the business.

tim

Using your FlexAccount ATM card is definitely the best way to go. Nationwide don't make any charges for using it overseas, and their exchange rates are as good as you'll get anywhere.

As well as the 1.5% that you saw, HSBC also add between 2.25% and

2.75% commission on ATM withdrawals. You don't normally notice that unless you read the small print. I believe some kind of new regulations are on the way to require banks to clearly show those hidden commission charges as a separate item on statements.

True. But all money changers bury something into their exchange rate, do they not ? It's never anywhere near the official rate, for the humble poor, that is.

Yes it is, if you use Nationwide or one of the few others who don't rip people off.

Changing cash is one thing, there are obviously costs involved in handling and storing lots of different foreign currencies. But there is really no excuse for charging people around 4% for ATM withdrawals abroad, which most banks seem to do. The bank is charged for the transaction at around the interbank rate, they then sneak in their exchange rate loading of usually 2.75% for doing bugger all, and usually a fee of 1-1.5% on top. Nationwide aren't a charity, yet they manage without charging any fee and using the rate they are charged with no loading, which IME is always very close to the interbank rate.

ISTM people come back off holiday and check the rate they were charged for ATM withdrawals, then compare it to the Thomas Cook rate for changing cash and think they've got a good deal.

Not so. Overseas cash withdrawals from a Nationwide account are converted at the prevailing wholesale rate.

I sit corrected. At the end of day, we are arguing about what was to me less than the cost of a pint of Guinness...

If you're happy to buy your bank a pint every time you make a foreign currency transaction, go for it.

On my last holiday I reckon I saved about 45 using my Nationwide credit card rather than my bank's ATM card and credit card, enough to get completely rat-arsed (on proper beer, mind, not nitrokeg crap like Guinness).

One ATM transaction in one week.

I suggest you don't come out with statements like that in an Irish pub ;-) Especially when you are locked-in...

Yup - after being stung for charges one time to many I opened a Nationwide FlexAccount (and Credit Card) for precisely the purpose of using abroad. And there's online access, helpful for those extended trips.

Regards

Matt

I was in Dublin a few days over Christmas a few years ago and I could never get my cards to work at ATM's. This was at Lloyds TSB. When I phoned London they didn't know why there was a problem. I wasn't able to go into the banks when they were open to try to sort it out.