Rachel Springall, Finance Expert at Moneyfacts.co.uk, said:

“As the options for travelling abroad expand for many consumers, the upcoming Bank Holiday could be the perfect time for a trip to Europe. Those well overdue a holiday may be paying more for their trip and the rising cost of living could also be denting their spending money. Holidaymakers may then be looking to make their cash go further, and avoiding a typical debit or credit card for spending abroad is a good way to avoid wasting cash on unnecessary fees.

“Withdrawing cash abroad may be a convenient way to get some spending money in hand but it will come at a cost. A typical debit card charges £11.88 when consumers withdraw £250 in cash abroad and £1.38 for an in-store purchase of £50. However, consumers can avoid these fees altogether if they apply for a credit card designed for use abroad or open a current account with a debit card that does not charge them for making withdrawals. Starling Bank, Metro Bank and Virgin Money all offer fee-free current accounts which do not charge in Europe for using a debit card, either for a cash withdrawal or retail transaction.

“One of the best credit cards for spending money abroad is the Halifax All in One Credit Card, as it does not apply any transaction fees, but there are other options out there too. A credit card will also protect spenders under Section 75 of the Consumer Credit Act on purchases between £100 and £30,000 if a service or goods are not provided or damaged and the card can be cancelled with ease if lost or stolen. As an alternative, some holidaymakers may prefer to get some currency last minute at an airport or train station, but not only can these exchange rates be poor, but there is also the danger in having cash lost or stolen.

“Holidaymakers can easily get caught up in the adventure of a break abroad, but it’s important they make a plan on how much they expect to spend each day considering how the cost of a holiday has already risen due to the pandemic and consumer demand. Linking any accounts to a budget app is handy to keep tabs on how much meals, shopping and excursions have cost, so that holidaymakers get no nasty surprises when they get back home and check their statements.”

*Typical debit card example is the HSBC Bank Account, on cash withdrawals, it charges a transaction fee of 2.00% (min £1.75, max £5) and a conversion fee of 2.75% and on purchases, this card charges a conversion fee of 2.75%. **Typical credit card example is the HSBC Rewards Credit Card Mastercard, on cash withdrawals it charges a 2.99% usage fee and a 2.99% / £3.00 cash withdrawal fee and on purchases this card charges a usage fee of 2.99%.