Major bank to axe fees for thousands of customers using their debit cards abroad this summer
A MAJOR bank will axe fees for customers using their debit cards this summer.
Halifax, part of Lloyds Banking Group, said Rewards customers will no longer be charged a fee for using their debit card abroad.
Rewards customers are currently charged a 2.99% fee for using their debit card abroad.
That means customers are currently charged an extra £2.99 for using their debit card to pay £100 abroad.
However, Halifax said it is waiving the fee for Rewards users come August 1.
It comes as part of a shake up of current account offer, which will also see "Extras" for Rewards current account holders axed.
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Currently, Halifax charges a £3 monthly fee to run this bank account and customers are given freebies in return for hitting certain targets.
But the bank has plans to close down this service come September, meaning customers who meet these targets will no longer get a reward.
Instead customers will have fee-free debit card spending abroad and a £100 interest free arranged overdraft to existing and new eligible Reward account customers.
A Halifax spokesperson, previously told The Sun: ‘We’re updating the features on our Reward account, introducing fee-free debit card spending abroad, with more benefits to come later in the year.”
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All Reward customers should be aware of the changes from July, giving everyone at least two months’ notice.
If the service no longer feels right for holders, they can close the account and choose to bank elsewhere.
Halifax is not the only bank which is giving customers a chance to dodge fees for using your card abroad.
Club Lloyd customers no longer have to pay foreign currency or cash withdrawal fees when using their debit cards abroad.
It comes as part of wider changes to the package, with the monthly fee to use the account also increasing from £3 to £5.
Customers could end up paying an extra £24 a year if they do not meet the £2,000 threshold.
This change will also affect customers with Club Lloyds Silver and Club Lloyds Platinum current accounts.
These users are charged the standard Club Lloyds monthly fee, as well as respective account fees of £11.50 per month for Silver and £22.50 per month for Platinum.
USING YOUR DEBIT CARD ABROAD
There are plenty of banks and building societies that do not charge for using your card abroad.
For example, Monzo does not charge its customers foreign transaction fees nor does First Direct.
Cumberland Building Society doesn’t charge you for using your Visa debit card abroad, but you do have to tell them your travel dates and destination.
You can do that either through the mobile banking app, by logging onto internet banking, on the phone, or in a branch.
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If you have a HSBC Global Money Account, you can spend abroad and withdraw from cash points fee-free.
Global Money accounts are available to any HSBC customers with an active current account and its banking app.
Are there other options to for spending abroad?
There are several specialist cards that can give you a great exchange rate.
These cards include travel credit cards and pre-paid cards which can let you pay abroad without fees or at a set exchange rate.
Senior Consumer Reporter Olivia Marshall explains all the options.
Travel credit cards: Travel credit cards allow you to spend money abroad without being hit by any fees or hidden charges.
But, they may still charge you for taking cash out.
We recommend the as it won't charge you for using it abroad, nor are there any fees for withdrawing cash.
But you will be charged interest if you don't repay your balance in full at a rate of 19.9 per cent.
And you will be charged interest on cash withdrawals until your balance is paid off too, at a rate of between 19.9 and 27.95 per cent depending on your credit score.
In other words, just because you are using plastic abroad doesn't mean you don't have to pay these credit cards off like you normally would.
Always pay off your balance before the end of the month with these cards to make sure that any money you saved isn't wiped away by paying interest.
For more on travel credit cards you can read our guide here.
Pre-paid cards: An alternative to carrying cash around is to get a pre-paid card.
These cards allow you to put a set amount of cash on the card at a fixed exchange rate.
So if the rate is good at the moment, you can put money on your card and it will stay that rate when you are on holiday.
Just keep in mind that these cards can sometimes have hidden costs and charges so be sure to read the small print.