Cheaper to withdraw abroad on card than take cash?

EpilipticFishGirl
EpilipticFishGirl Posts: 2 Newbie
in Flights, currency & car hire
I'll be going to various places in Europe soon and wanted to get the best rate on transferring my pounds to euros. I also have a Halifax Clarity card which i got for making purchases abroad. Looking at the best rate i can get in cash compared to the cost of withdrawing on my card, am i being silly or is it cheaper to withdraw cash abroad - taking into consideration the withdrawal fee (approx £1.50 per £100 withdrawn in cash)? Is this even right?

E.g. locally the best deal on £100 in euros cash is €108.76 at debenhams but with the clarity reward card its €110.87. Even with the £1.50 hit im better off with the card. Is this right?

Comments

  • Voyager2002
    Voyager2002 Posts: 15,277 Forumite
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    Yes, an ATM withdrawal in the country usually costs less than buying the equivalent cash in the UK (obviously if you already have the foreign currency then taking it with you is free).

    And what is that 1.50 charge? The best cards do not charge for ATM withdrawals: within Europe the simplest is probably the Metro bank debit card.
  • zagfles
    zagfles Posts: 20,317 Forumite
    First Anniversary Name Dropper First Post Chutzpah Haggler
    The Clarity doesn't have a withdrawal fee. It charges interest from when you withdraw but you can minimise that by paying it off asap, you don't need to wait for the statement.

    On a short holiday just pay it off when you get back, on a longer holiday you might want to pay it while abroad if you have internet access. Interest works out to something like 3-5p per day per £100 withdrawn.
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    zagfles wrote: »
    Interest works out to something like 3-5p per day per £100 withdrawn.
    Which is where the OP's confusion lies. The representative rate of 18.9% APR equates to very nearly 1.5% per month (or £1.50 on their £100 withdrawal).
  • Gloomendoom
    Gloomendoom Posts: 16,550 Forumite
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    Look at the Barclaycard Visa travel card. No interest and no fees (until Oct 2018).
  • EpilipticFishGirl
    EpilipticFishGirl Posts: 2 Newbie
    Thank you so much this is very helpful.
  • A_T
    A_T Posts: 959 Forumite
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    Clarity does not have it's own ATM withdrawal fee abroad. But the bank whose ATM you use might well do.
  • zagfles
    zagfles Posts: 20,317 Forumite
    First Anniversary Name Dropper First Post Chutzpah Haggler
    A_T wrote: »
    Clarity does not have it's own ATM withdrawal fee abroad. But the bank whose ATM you use might well do.
    I've never known an ATM in Europe to charge anything and I've been to most European countries. This seems to be an issue in certain few countries, eg USA and Thailand.

    I guess like here some ATMs in pubs, shops etc might charge, but proper bank ATMs in Europe never charge, IME anyway.
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