Summer Savings: Best Cards And Accounts For Vacations

This time of year is a popular time of travel for those living in the UK and across Europe. Taking a holiday is expensive enough without having to come home and find a long list of overseas card charges and transaction fees overwhelming your bank statement.

Using your card when traveling can rack up some serious charges. Some banks are charging up to £1.50 each time you swipe your card. Banks such as Lloyds TSB, Halifax, RBS, Intelligent Finance, Santander and NatWest are examples of FIs with accounts that charge, according to a ThisIsMoney report. Travelers don’t want to be using these accounts when going abroad.

In attempt to save holiday-goers from banking-induced anxiety attacks, ThisIsMoney has created a list of recommended accounts that require little to no fees. These cost-saving accounts are great for frequent flyers or those who take annual holiday trips overseas. We take a look at their findings below.

Best For Local Londoners

Metro Banks’ current account is a reasonably small newbie, and prides itself on being customer focused. The current account allows for foreign transactions that are free of fees and saves accountholders a lot of money if they are frequently traveling. Metro Bank users do not have to pay to use their card or withdraw money from an ATM, but it is important to keep in mind that you are still required to pay for the exchange rate. Metro Bank also offers online and mobile phone banking to help customers manage their account. In addition to these services, they give email and text alerts to notify accountholders when they’re close to being overdrawn. There is also no required monthly fee or interests to hold an account.

Those living outside or far from the M25 should reconsider opening a Metro Bank account, ThisIsMoney claims. The small bank has 16 branches that are only located in London and the South East of England. This account is also not a good choice if you find yourself constantly overdrawn, as the fees for overdraft are steep.

Best For Free Benefits

Norwich and Peterborough’s classic account is great for those looking to save money, and looking to get a few free perks along the way. The account also allows for fee-free transactions abroad, but still require the user to pay for the exchange rates. This account supports free cash withdrawal from ATMs and free card transactions. N&P offers customers a deal that includes £250 overdraft that is free of interest for a six-month period when you sign up. Moreover, accountholders are given free Sentinel Gold coverage for personal items when traveling. In the unfortunate case that a traveler is stuck outside the country because their purse was stolen, the bank will admit up to £11,750 in emergency cash.

Beware again to those who often overdraw their accounts. Overdrafts can build up interest at a 17.9 percent rate on top a monthly fee of  £5.

Best Credit Card For Cost-Cutting

The Halifax Clarity credit card offers customers simple options for overseas transactions. It doesn’t cost anything to transfer money or withdraw cash in the country or abroad, and there is also no annual fee. The card charges no extra fees as long as the accountholder pays off their balance in full each month.

Traveler’s need to watch out for the high interest rate that is added if the balance isn’t paid immediately each month. The interest rate is 12.9 percent and the bank also charges £12 for any late fees: just remember not to go over your limit.

To read the full story and report at ThisIsMoney, click here.