Cash withdrawals abroad

knightstyle

Seeing that Nationwide is now going to charge how do cash withdrawals using a credit card abroad work? The guide says that using the Halifax card there is no fee but interest is payable, so how much interest will I pay if I withdraw say £600 a month?

lisyloo

Depends when you are going to pay it off.
The typical interest is 12.9%, which is very approx 1.1% per month.
So if you took out £600 and took exactly a month for the total cleared payment to pay it off then it would cost £6.60.

dll

I wouldn't recommend cash withdrawals using a credit card - whatever it says, it ends up costing a fortune.

Biggles

dll wrote: »

I wouldn't recommend cash withdrawals using a credit card - whatever it says, it ends up costing a fortune.

It would still be one hell of a lot cheaper than any bureau de change, though!

knightstyle

Thanks for your replies. So I will be charged for cash withdrawals even if I pay off the full amount each month? Plus if I make the withdrawal a week before paying off in full each month will I still pay 1.1% or will it be 12.9% divided by 52, about 0.25%

lisyloo

I wouldn't recommend cash withdrawals using a credit card - whatever it says, it ends up costing a fortune.

I think this is wrong information.
12.9% interest with no loading is one of the cheapest ways if you pay it off quick. Of course if you leave it then it won't be cheap, but for the disciplined, it's a cheap course of action.

So I will be charged for cash withdrawals even if I pay off the full amount each month?

Yes, there have never been interest free days on cash withdrawals on credit cards, only on purchases.

Plus if I make the withdrawal a week before paying off in full each month will I still pay 1.1% or will it be 12.9% divided by 52, about 0.25%

1.1% is the monthly rate i.e. 12.9 divided by 12 (approx).
So weekly rate will be 12.9 divided by 52.

Bear in mind you have to wait for payment to clear. So if you pay by BACS then allow 3-4 days. Even cash in the bank takes clearance somtimes. I wouldnt' receommend cheque by snail mail.

Also bear in mind if you have purchases as well then those might (I'm not sure) get cleared before you cash, so only way to be sure is pay off in FULL.

knightstyle

Lisyloo, many thanks for your detailed reply. I am now going to apply for a Halifax credit card and will use it when Nationwide start charging for cash withdrawals abroad. Will set it up so I pay the outstanding amount in full each month and try to draw my spending money out just before the month end. I always draw cash and pay it straight back into the ATM to pay into my French bank account without any charges.
Have been using Nationwide for many years, it will be a pity to say goodbye to them.

YorkshireBoy

lisyloo wrote: »

...there have never been interest free days on cash withdrawals on credit cards...

Unless you have a Saga card.

You'll pay a 2% fee on this card though, which confirms just how good the Clarity offer is...if you pay the entire bill in full each month (plus a little extra to stop the interest) of course.

lisyloo

Unless you have a Saga card

Is this only available to over 50s?

KingL

knightstyle wrote: »

Lisyloo, many thanks for your detailed reply. I am now going to apply for a Halifax credit card and will use it when Nationwide start charging for cash withdrawals abroad. Will set it up so I pay the outstanding amount in full each month and try to draw my spending money out just before the month end.

Presumably you can pay it off more often that once a month. i.e. use the ATM, then use your internet banking to make a payment to your Halifax card for the same amount. Would it go by faster payments? If not presumably you might be able to set up the transfers 2 or 3 days in advance of using the ATM, so as to minimise interest payments, but avoid forward loading the card ? Anyone know if this is (technically) feasible ?

lisyloo

Yes, it feasible, if you want to do that.

Alternatively you could stop giving yourself an ulcer, pay 1% and know you have probably got the best deal around.

But if it's real important to save that 1%, then I don't see why you can't pay ASAP, which might mean initiating internet transfer in advance once you've worked out how many days it takes.
Bear in mind if you go into credit, the money will probably be returned, so it must hit the account AFTER the withdrawal has registered. If you do it too early it won't work.