Brits waste £284 million using ATMs abroad

This summer, British holidaymakers will waste a total of £284 million in banking fees charged for withdrawing cash at ATM machines abroad. This coupled with the poor exchange rate, means that the average family will spend £380 more than they did on holiday last year.

Many people are unaware of the charges applied to foreign ATM transactions, but in fact, all the big banks levy a fee for ATM usage – usually at around 2.5% of the amount withdrawn, or a minimum of £3 per withdrawal. This means that if you were to make 5 cash withdrawals on holiday, you could accrue £15 in withdrawal fees alone.

Two ways to avoid this is to obtain either a credit card that doesn’t charge for foreign transactions or to get yourself a prepaid card.

For example, the Santander Zero credit card, previously known as the Abbey Zero offers fee-free credit on foreign purchases. This could allow you to save money, as long as you pay off the balance as soon as you return home from vacation.

Alternatively, the Caxton FX prepaid card can be filled up will funds before you travel and offers free ATM withdrawals abroad – in any currency.

If you are planning on going abroad this summer, head over to http://www.totallymoney.com/credit-cards/ where you can compare the best offers from top UK lenders to find the card that works best for you. When you’ve found the one you want, just click Apply to start the application process.