Nationwide Debit Card abroad or cheap Euros in cash?

hammy_the_hammer

dezza wrote: »

Just wondering if it's much point waiting for the card... going away in under 3 weeks time - is it much point waiting for the card and hoping it arrives in time, or ordering currency now and get a better rate by ordering in advance?

this seems at odds with what you posted a few posts above

"I was asking if the Nationwide card offers a better rate at the time of the transaction - I know that no-one knows what the rate will be like in weeks to come, which is a shame:rolleyes: "

if you wait for the card and it doesn't come the rate on the day may be better than the advanced rate you purchase

dezza

No, sorry maybe I phrased my last post wrong.
I was wondering if the card and PIN is likely to arrive before I go on holiday in the beginning of August - that's what I was asking. Because if the account is unlikely to be set up by then, then I may as well order currency now.

persona_non_grata_2

Hi Guys,

New here, just found your thread and wanted to ask a question.

I don't really see what nationwide could gain out of offering this debit card with cash withdrawls abroad with such a great rate so i was convinced that they only way they could make their money was to offer you currency at a lower exchange rate than that offered by Thomas Cook etc. I have been searching the Nationwide website but I can't find any page telling me what the exchange rates are that I will get if I used my card abroad today. Does anyone know where I can get this info?

It seems a little dubious to be to use my card abroad without prior knowledge of the exchange rate that I will be offered.

Thanks in advance for your help

benjus

persona_non_grata wrote: »

Hi Guys,

New here, just found your thread and wanted to ask a question.

I don't really see what nationwide could gain out of offering this debit card with cash withdrawls abroad with such a great rate so i was convinced that they only way they could make their money was to offer you currency at a lower exchange rate than that offered by Thomas Cook etc. I have been searching the Nationwide website but I can't find any page telling me what the exchange rates are that I will get if I used my card abroad today. Does anyone know where I can get this info?

It seems a little dubious to be to use my card abroad without prior knowledge of the exchange rate that I will be offered.

Thanks in advance for your help

The Nationwide card is a Visa debit card, which means that the exchange rate is provided to them by Visa. Nationwide do not have any choice over the rate they use. They obviously have the option to "load" the rate, but this is precisely what the FlexAccount does not do, which makes it different from other debit cards.

You can find the current Visa rate here: http://www.corporate.visa.com/pd/consumer_services/consumer_ex_rates.jsp (put 0 where it asks for the bank fee)

There is also a "comparison calculator" on the Nationwide site, which estimates the savings compared with other current accounts: http://www.nationwide.co.uk/current_account/Calculators/overseasCalc.htm

If that doesn't convince you, look at the following extracts from my FlexAccount statement, when I recently used my debit card in Spain and France (the transactions are for cash and motorway tolls):

20 June 2008 Cash Caja de Ah.Y P/121004451 XABIA. 120.00EUR at 1.271 £94.37
25 June 2008 Autoroute Du Sud 84ADGE-PEZENA. 10.10EUR at 1.262 £8.00
25 June 2008 Autoroute Du Sud 84ADGE-PEZENA. 0.70EUR at 1.272 £0.55

According to www.xe.com, the EUR/GBP rate on 20 June 2008 was 1.2608, and on 25 June 2008 it was 1.2672. As you can see, this rate is close to the rates used to calculate the transactions. The rates are not identical because the rate fluctuates during the day, and because the transaction may not be processed on the same day it was made.

mad_rich

persona_non_grata wrote: »

I don't really see what nationwide could gain out of offering this debit card with cash withdrawls abroad with such a great rate

The thing they gain is a customer, and that's (potentially) worth a lot more than they lose on the currency exchange. Of course savvy MSEers will only use it as their 'going on holiday' account, but Nationwide hopes that we will switch lock, stock and barrel to their current account, buy their mortgages, insurance etc.

It's a loss leader, just like tins of beans for 1p.

As for knowing the rate in advance, I'm not sure if you can find out the exact rate they use, but you can be sure (trust Martin if nobody else!) that whatever it is, it'll be damn good. Have a look at the mid-market rate https://www.xe.com on they day of your transaction; in my experience it's never more than 0.5% away from that, and usually a lot better.

benjus

mad_rich wrote: »

Nationwide hopes that we will switch lock, stock and barrel to their current account

Well, their strategy certainly worked with me...

I've been very happy with their service - I can always get through to their customer service line quickly and find them polite and helpful. The interest rates (both credit and overdraft) are respectable, and while I could get slightly better interest elsewhere, I don't want the hassle of shuffling money around all the time. If I'm going to have one main current account for everything, it has to be Nationwide, as I make foreign transactions very frequently.

persona_non_grata_2

benjus, mad_rich, thank you very much for your quick and detailed respones!!

I indeed only plan to use it as my "Holiday Account", and I wanted to make sure in advance that I was getting a good deal. I think nearly all my fears have now been allayed.

One more quick question for benjus; the link you posted to the Visa website giving the current exchange rates was exactly what I was looking for. However, the number of currenices it will show exchange rates for is rather limited. Part of my plans for this summer is to visit Jordan and Syria, do you know where I could find these exchange rates (Visas obviously, not the market rates)?

Inactive

benjus wrote: »

, and while I could get slightly better interest elsewhere, I don't want the hassle of shuffling money around all the time. If I'm going to have one main current account for everything, it has to be Nationwide, as I make foreign transactions very frequently.

If you open a linked eSavings Account, which is linked to your Flexaccount, that will pay 5.05% and is instantly accessed via internet banking, transfers between accounts are immediate.

benjus

persona_non_grata wrote: »

One more quick question for benjus; the link you posted to the Visa website giving the current exchange rates was exactly what I was looking for. However, the number of currenices it will show exchange rates for is rather limited. Part of my plans for this summer is to visit Jordan and Syria, do you know where I could find these exchange rates (Visas obviously, not the market rates)?

I've tried to find this out too, but Visa are a bit cagey about it. I have found that withdrawing local currency in South America gives an exchange rate that's slightly worse than mid-market rates on www.xe.com . I contacted Visa to ask if they could give rates for more currencies, but they would only say:

The Visa rate is selected from a range of rates available in wholesale currency markets or the government-mandated rate in effect one day prior to the applicable central processing date. Visa makes this rate available to issuing banks, which may adjust the rate in billing cardholders. The rate Visa makes available to issuing banks may vary from the rate Visa itself receives... If the currency you require should not be available, we suggest that you go to Nationwide for the details, as Visa does not provide currency conversion rates directly to cardholders...

It seems that when dealing in common currencies Visa can get a rate that's virtually identical to the mid-market rate, but with less common currencies the rate may differ a little. However, the Nationwide card will still be the cheapest way to withdraw money.

sian73

hope you can help, we use our NATIONWIDE FLEXI CARD in Spain all the time and get a better rate than at burea de changes......we find it easy to use and want to know if the rate changes depending on which country your in, for example does france give a lower rate than spain.. As I'm writing this it seems straight forward that a rate is the same all over europe, but for some reason we never use the card in ATMs in France. So if anyone can put my mind at ease for using the card in France ...please do thanks