Nationwide Visa Debit card can be the more expensive way of withdrawing cash abroad.

reallydismayed

Since Nationwide brought in charges for withdrawing cash from cash machines in Europe last autumn, I have been experimenting with taking out euros in Spain. ATMs of many banks there offer to charge you in pounds using their own exchange rate as an alternative to the British banks rate. I had a vague idea that these Spanish banks use a rate about 3% worse than the market rate, so I assumed that Nationwide's charge of 2% plus £1 would make Nationwide cheaper so long as you were taking out at least £100 worth.

I made the experiment of noting what Spanish banks were offering for three transactions while accepting to Nationwide's conversion to pounds.

7/12/2010 €190 euros
La Caixa offered me £165.92; Nationwide charged me £165.36

10/12/2010 €120 euros
BBVA offered me £102.96; Nationwide charged me £104.20

15/12/2010 €20 euros
Banesto offered me £17.96; Nationwide charged me £18.38

Looks like the break even point could be well over £100.

A bit ironic remembering that Nationwide were quoted as saying (guardian.co.uk/money/2008/jul/12/foreigncurrency.consumeraffairs)
"We're disappointed to see more and more ATMs operating dynamic currency conversion after the pilot ended, as consumers could increasingly be caught out. When using a cash machine, we understand why consumers would be tempted to transact in sterling, as they'll be able to see how much money they're withdrawing in pounds rather than euros for example - however, the conversion rate used could prove to be very unattractive. Therefore, if in doubt, always opt to transact in the local currency."

glider3560

The exchange rate can change between the date of the transaction and the date the transaction is processed, which are usually two or three days apart.

benjus

Presumably the £1 charge would still apply even if you accepted the Spanish bank's conversion to Sterling?

reallydismayed

Presumably the £1 charge would still apply even if you accepted the Spanish bank's conversion to Sterling?

I have tried that also. There are no charges at the Nationwide end.

ManAtHome

Nationwide's 2% plus a quid is 3% for £100, 2.5% for £200, 2.33% for £300 (and 7% for £20!!), so yes, break-even is over £100.

reallydismayed

Just checked a couple more transactions:

5/12/2011 €150 euros
La Caixa offered me £132.11; Nationwide charged me £132.54

1/2/2012 €140 euros
Caja Rural offered me £120.77; Nationwide charged me £120.17

missile

You are quibling over pennies. It is not worth discussing.

Get out and enjoy the sunshine.

dzug1

The exchange rate can vary marginally between two transactions on the same day - it isn't fixed

glider3560

reallydismayed wrote: »

Just checked a couple more transactions:

5/12/2011 €150 euros
La Caixa offered me £132.11; Nationwide charged me £132.54

1/2/2012 €140 euros
Caja Rural offered me £120.77; Nationwide charged me £120.17

I assume the Nationwide fee includes the £1 charge for non-UK ATM? Remember you'll be charged this on top of the Caixa/Caja Rural charge.

Bloomberg

reallydismayed wrote: »

Since Nationwide brought in charges for withdrawing cash from cash machines in Europe last autumn, I have been experimenting with taking out euros in Spain. ATMs of many banks there offer to charge you in pounds using their own exchange rate as an alternative to the British banks rate. I had a vague idea that these Spanish banks use a rate about 3% worse than the market rate, so I assumed that Nationwide's charge of 2% plus £1 would make Nationwide cheaper so long as you were taking out at least £100 worth.

I made the experiment of noting what Spanish banks were offering for three transactions while accepting to Nationwide's conversion to pounds.

7/12/2010 €190 euros
La Caixa offered me £165.92; Nationwide charged me £165.36

10/12/2010 €120 euros
BBVA offered me £102.96; Nationwide charged me £104.20

15/12/2010 €20 euros
Banesto offered me £17.96; Nationwide charged me £18.38

Looks like the break even point could be well over £100.

A bit ironic remembering that Nationwide were quoted as saying (guardian.co.uk/money/2008/jul/12/foreigncurrency.consumeraffairs)
"We're disappointed to see more and more ATMs operating dynamic currency conversion after the pilot ended, as consumers could increasingly be caught out. When using a cash machine, we understand why consumers would be tempted to transact in sterling, as they'll be able to see how much money they're withdrawing in pounds rather than euros for example - however, the conversion rate used could prove to be very unattractive. Therefore, if in doubt, always opt to transact in the local currency."

Now that the free overseas ATM usage has been abolished what does the Nationwide have to offer? There are many things about the Nationwide which are poor, once upon a time the free overseas ATM usage was their only redeeming feature. I was a Nationwide customer for many years, soon after opening the account I was not overly impressed with them but the boon of free overseas ATM usage was a USP which kept me with them. What a shower they are.

reallydismayed

missile wrote: »

You are quibling over pennies. It is not worth discussing.

Actually, it makes quite a difference to my finances.

missile wrote: »

Get out and enjoy the sunshine.

It's clouded over a bit, but it was 18 degrees earlier with completely blue sky.