MSE News discussion. Nationwide kills cheap overseas spending

Fortyfoot

INSURANCE LINK HERE

Fortyfoot

Prozac

ViolaLass wrote: »

I'm the same, Mervyn.

I've been with Nationwide for 12 years (not out of laziness but because I genuinely liked how I got treated and I liked the rates). I'd been half heartedly considering changing my current account for the last year but now I definitely will. I've emailed them to point out that this will lose them all my custom - current account, joint account, two savings accounts and next year's mortgage.

What a cr*ppy idea they've had.

Must admit, having just found out what Nationwide are doing, I'm with you. I opened up a FlexAccount because of the deal with the overseas charges since I have conducted much work in South Africa. I have had my main account with them, credit card, savings and ISA... and have stuck with them primarily because of the benefit in regards to transactions overseas.

However, they may just lose another customer because of this change...

PLUS I fail to see what major benefit there is for me as a reliable customer...
Chris Rhodes, Nationwide's product and marketing director, says: "The changes are to stop people getting the account just to use overseas. If you bank with Nationwide and support our products we want to give you a reward.

"What I don’t think is right is to cross-subsidise customers who choose to stay with Lloyds, for example, but use us for travel."

Well I support N/W and your products BUT you are penalising me because of some who don't have their main account with you...:(

NOT A HAPPY CUSTOMER

patman99

So to recap, 900,000 people use Nationwide purely for their free overseas spending (which costs N/W 2% each time). Now Nationwide has had enough of being mugged and introduced charges all the !!!!!!!!!!s are !!!!!ing.

Just think, all that extra cash N/w will have to re-instate interest rates to Flex account customers once the sponging !!!!!!!!!!s have all gone will be most welcome.

At least Nationwide have done one decent thing. As of November 2010, they will be capping fees for bounced DD's and SO's to £15.00/

StudentOfBusiness

Dont moan people, Nationwide wont care if you go because they will get a lot of extra customers using their basic account as it features a debit card!

If you want cheap overseas spending, do like me a most normal people and get a caxton card and stop moaning, they have good rates, no fee's and are quite a cool card...

greyteam1959

StudentOfBusiness wrote: »

Dont moan people, Nationwide wont care if you go because they will get a lot of extra customers using their basic account as it features a debit card!

If you want cheap overseas spending, do like me a most normal people and get a caxton card and stop moaning, they have good rates, no fee's and are quite a cool card...

But the Caxton Card & the FairFX cards DO NOT give as good a deal as the Nationwide Debit Card.
I have just worked it out that for every 300 euro that I withdraw from an ATM in Europe it will cost me approx £4.00 more.
BIG difference...........

StudentOfBusiness

Yes £4.00 is such a big, big difference...
Why does it cost more though, caxton dont charge?

In fact, when I was in Ibiza, I withdrew around about 1500 euro over the course of 2 weeks, and did not once get charged.

greyteam1959

Soon mounts up tho if you are withdrawing maybe 4000 / 5000 euro per year.
No Caxton might not charge but its all in the difference between the price that you buy the euro at and the whole euro price at the same moment.

virgo17

mervyn11 wrote: »

But the Caxton Card & the FairFX cards DO NOT give as good a deal as the Nationwide Debit Card.
I have just worked it out that for every 300 euro that I withdraw from an ATM in Europe it will cost me approx £4.00 more.
BIG difference...........

How do you work that one out?

The CaxtonFX Euro card has no ATM fee in the Eurozone and no other charges. The Nationwide card (from November) will charge 2% loading plus £1 fee. Even if the Caxton exchange rate is slightly worse when the card is loaded how can the Nationwide be better?

Agree that the FairFX Euro card is not such a good deal due to the ATM charge in Europe.

greyteam1959

That 1500 euro that you withdrew......
Say you bought the euro's at 1.20 from Caxton that cost you £1250
The wholesale rate on the day was actually 1.22 ( what Nationwide debit cards use ) so that would have cost £1229.50 so there is a difference of £20.50............

virgo17

Yes, but you are talking about now. This thread is all about what is going to happen from 1st of November 2010.

I agree with your calculation of the difference between the wholesale rate and the rate that Caxton will use.

However if you apply the same figures after 1st November, your Nationwide withdrawl will cost you 2% more plus £1, €1531 which at a rate of 1.22 equates to circa £1255.50. The Caxton figure remains £1250.

It is what will be happening in the future that concerns folk here.