UK credit or debit card use in Spain

45sasf34

Hi
I've just moved to Spain and have UK income into my UK bank account.
I want to use my UK money in Spain with the best conversion rate that i can get - ie. something close to the actual currency conversion rate.
I have a tescos credit card that gives a terrible rate of exchange.
I have a Nationwide debit card that gives a much better rate of exchange, but recently (last November) started charging 2% for all transactions abroad.
What i'd like to know is, which bank gives the best r. of e. on their cards in Spain without charges?
I'd also be interested in any other cost effective way of exchanging the money, bearing in mind that i'm not often in the UK, so I can't just withdraw the cash and walk into the Post Office.

Thanks for any help

firsttimestudent

It sounded like you have a decent credit history. Have a read at this very excellent article here.

Alternatively, for Spain, you can open up a Santander bank account, and use your Visa Debit to withdraw cash for free at Santander-branded cash machines. Link here:

"What charges apply if I use a Santander Cash Machine in Spain?
All main adult current accounts (those which are credited with at least £1,000 per month) could benefit from free cash machine withdrawals in Spain. Simply use your Santander Debit Card in a Santander branded cash machine in Spain to receive the withdrawal fee free. This means: No Cash Handling Fee AND No Foreign Exchange Fee will be charged."

ironlady2022

To be honest if your salary is going into your Nationwide, that is your best bet. Opening up a Santander account in Spain, unless you can get salary paid in then no point as would have to go through conversion rate when you do an electronic transfer anyway from Nationwide account thus incurring a foreign transfer fee. You cannot go for any new accounts as you do not reside in UK anymore, you can maybe try applying for an off shore account?

chattychappy

Perhaps on the strength of your NW account, get a NW gold visa? That isn't loaded in Spain and would at least sort you out for purchases..

But agree - if you're truly not resident in the UK now, it is a bit difficult to apply for new accounts if they ask about residency (or its a T+C that you are resident).

Do you still maintain an address in the UK? There are a number of definitions of residency - HMRC take a bit of convincing until you've been away for a while. Of course you mustn't lie, but I would check very carefully what is being asked.

fawinds

I have not moved to Spain, but have a flat in Seville and travel there quite often. My main bank in the UK is HSBC, but I have never used there their debit or credit cards as I do not want to pay the 2.75% or 2.99% respective exchange loading fees.

When my credit history wasn't good enough for anything else, I got a FairFX euro card, where the exchange load is 1.5%. When I wanted to pay cash into my Spanish bank account I used xe.com. Their load is around 1.5% too and they put the money into your Spanish account for free usually in just a couple of days.

Recently with an improved credit history, I managed to open a Citibank sterling account. If I get cash from a Citibank ATM in Spain from my Sterling account, their loading fee is just around 1%, which is the best deal I've got at the moment. Unfortunately there are very few Citibank branches in Spain and their "24H Banking Centres" are usually locked after hours. In addition I have experienced some problems recently and for almost a month no Citibank ATM in Spain would be able to access my UK account.

My next move is to apply for a Halifax Clarity credit card, they have a 0% load on purchases and cash. I will use it for purchases only. For cash next time I get to London I will open an account at Metrobank and will use their debit card. In my opinion this is the best credit/debit combination.

You can also do as you've been told and apply for a Nationwide credit card, but I do not like them too much... will they keep for long their 0% exchange load in Europe? Too recently they introduced the 1% load in non-European purchases and now the stop the fee free cash abroad thing with their debit cards. What do you expect will be their next move?

There are other debit/credit cards worth for using abroad, but I believe the two I have mentioned are the best and easiest to get.

chattychappy

fawinds wrote: »

My next move is to apply for a Halifax Clarity credit card, they have a 0% load on purchases and cash.

Yep, but check out https://forums.moneysavingexpert.com/discussion/2956902