How does Nationwide foreign exchange rate compare?

momoneysaver_2 · 9 August 2009 at 1:02PM

I have a Nationwide Debit Flexaccount which, according to this site, is one of the cheapest ways to spend money abroad.
However, I am a bit confused. Whilst it's true that this card doesn't have any of the usual charges or fees that others have, doesn't the best deal have to take into account the exchange rate too? ie would buying foreign currency in this country from whichever organisation offers the best exchange rate (and no commission etc) before I go on holiday, be better value for money if the exchange rate is preferable to that offered by Nationwide?
Would be grateful for advice/experience. Thanks, Mo

BritRael · 9 August 2009 at 1:17PM

I too use the Nationwide Flex card and have done for years. The rate they use is equal to the 'mid rate' (as found on www.xe.com for example), which for me, certainly compares favourably with any other method of foreign exchange.
Whereas they previously had no charge for this, they now charge 1% for withdrawals outside of the Eurozone. Still competative though

You are quite right, if you could get a no commission + no fee deal, you would be better off. However, make a note of the current mid rate (it constantly fluctuates) for the currency you are interested in and compare it with the high street (they dont change very fast). I think you'll be pleasantly surprised with Nationwide

M4RKM · 9 August 2009 at 1:26PM

momoneysaver wrote: »

I have a Nationwide Debit Flexaccount which, according to this site, is one of the cheapest ways to spend money abroad.
However, I am a bit confused. Whilst it's true that this card doesn't have any of the usual charges or fees that others have, doesn't the best deal have to take into account the exchange rate too? ie would buying foreign currency in this country from whichever organisation offers the best exchange rate (and no commission etc) before I go on holiday, be better value for money if the exchange rate is preferable to that offered by Nationwide?
Would be grateful for advice/experience. Thanks, Mo

Well, today's rate for purchasing today is €1.165 from Thomas Exchange Global in London, or an average high street rate of €1.14 - €1.12.

However, the Visa card rate today, with 0% conversion is €1.17

So yes, exchange rate does come into account, but with each rate currently offered for euros is lower than what you can get on your nationwide card, the nationwide is the best. It doesn't however lock in your exchange rate, where if you buy euros, or get a prepaid card, does, so if the rate drastically drops when you're on holiday, you are going to get that days rate...

M

stoat · 18 August 2009 at 10:29AM

I have a Nationwide flex account debit card and their gold credit card, do they use the same exchange rate for both card purchases on either of these and cash withdrawals from the flex account while in Europe?

I know there is the section 75 advantage in using the credit card but while in Europe which is cheapest, purchase on credit card, purchase on debit card or draw ATM cash? Am I right in thinking these work out the same?

Thanks

Simstwins · 18 August 2009 at 1:49PM

Nationwide - the way to go

I have just come back from 2 weeks in Spain, only took a small amount of euros for the 1st day, and used my flex account card for the remainder of my euro requirements.
I have checked the rates I have been charged, since I came home, and have been pleasantly surprised by the rates received. As I was holidaying in Spain no addiitonal charges applied either
The additional benefit too, is that you only withdraw as much as you require, so no left over currency on return to change back at unfavourable rates.

Donnie · 18 August 2009 at 2:15PM

BritRael wrote: »

I too use the Nationwide Flex card and have done for years. The rate they use is equal to the 'mid rate' (as found on www.xe.com for example), which for me, certainly compares favourably with any other method of foreign exchange.
Whereas they previously had no charge for this, they now charge 1% for withdrawals outside of the Eurozone. Still competative though

Please check your facts before posting this everywhere.

eslick · 18 August 2009 at 8:02PM

you can find the daily visa rate here

http://corporate.visa.com/pd/consumer_services/consumer_ex_rates.jsp

you just need to know the percentage charged, not sure if this is the same for debit cards, but works a treat with credit cards.

fee for using NW cards outside of europe is 0.84% but best check the countries on the website to be sure. think there was some talk of away round the charge for flex accounts but might be wrong on this piece

dzug1 · 19 August 2009 at 11:09AM

momoneysaver wrote: »

I have a Nationwide Debit Flexaccount which, according to this site, is one of the cheapest ways to spend money abroad.
However, I am a bit confused. Whilst it's true that this card doesn't have any of the usual charges or fees that others have, doesn't the best deal have to take into account the exchange rate too? ie would buying foreign currency in this country from whichever organisation offers the best exchange rate (and no commission etc) before I go on holiday, be better value for money if the exchange rate is preferable to that offered by Nationwide?
Would be grateful for advice/experience. Thanks, Mo

Yes the best deal does have to take into account the exchange rate as well.

But the exchange rate will NOT be preferable to that used by Nationwide.

If we take Nationwide as the 'base' exchange rate, then the next best rate (available over the counter only at a couple of locations in London) is about 2% less. The High Street average is 5 or 6% less.

You will not do better than a Nationwide card unless someone is prepared for whatever reason to trade at a loss.

abacab · 19 August 2009 at 8:18PM

eslick wrote: »

you can find the daily visa rate here

http://corporate.visa.com/pd/consumer_services/consumer_ex_rates.jsp

you just need to know the percentage charged, not sure if this is the same for debit cards, but works a treat with credit cards.

fee for using NW cards outside of europe is 0.84% but best check the countries on the website to be sure. think there was some talk of away round the charge for flex accounts but might be wrong on this piece

The Nationwide flex account CASH CARD has no loading outside of the eu at present.
As it is a cirrus network card it uses mastercard rates instead of Visa,but shouldnt be a whole lot different.

sarah.hannah84 · 20 August 2009 at 8:53AM

Hi there,

I just joined MoneySavingExpert so I could comment on this thread - as I am going away to spain on Sept 4th and am planning to withdraw my EUROs from my friends Nationwide flexcard...

She has called Nationwide who say they cannot advise what the rate is at the moment - has anyone been away in the last few weeks and withdrawn EUROs? If so what was your rate please?

Hope someone out there can help!
Thanks,
Sarah

Simstwins · 20 August 2009 at 9:52AM

Hi - I used my flex account debit card in Spain twice between 2nd August 2009 and 15th August 2009. The first transaction early in that time period has just come through on my statment and at nearly 1.17 euros to the poind was a great rate. The second trasaction later in the holiday was a slightly worse rate at about 1.165 - but both compared very well to the market rate available on those dates - I was very happy with the outcome.
Be careful when using the machines, as they offer to exchange there and then for you, and give you a 'bank' rate- which you have to decline - very confusing - so I took my time over each transaction

How does Nationwide foreign exchange rate compare?

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