Santander Zero - Avoiding Overseas Cash Machine Interest

jmfwilts

Hi, I am thinking of getting a Santander Zero card for overseas spending and cash withdrawals. They charge around 28% interest for cash advances even if you pay your balance in full. If I overpay my balance (is this possible?) then I would have thought they can't charge me any interest.

If I can't overpay, maybe I can make a payment (over the internet while abroad) as soon as I have made the transaction on my CC. That way, I would only have a few days interest to pay.

Anyone had experience of this?

NickX

jmfwilts wrote: »

Hi, I am thinking of getting a Santander Zero card for overseas spending and cash withdrawals. They charge around 28% interest for cash advances even if you pay your balance in full. If I overpay my balance (is this possible?) then I would have thought they can't charge me any interest.

Whilst your logic is correct, I believe Santander have actually put a clause in their Terms and Conditions prohibiting a positive balance probably so that people do not take this course of action.

jmfwilts wrote: »

If I can't overpay, maybe I can make a payment (over the internet while abroad) as soon as I have made the transaction on my CC. That way, I would only have a few days interest to pay.

This would be possible and should only incur a minimal amount of interest, however you must pay off your balance in full because otherwise the "allocation of payments" will work against you and the Cash Advance would become trapped accruing interest.

If you can pay off quickly in full, then Santander Zero is the best card for making cash withdrawals because of the "zero" charge