Cheaper to withdraw abroad on card than take cash?

EpilipticFishGirl

I'll be going to various places in Europe soon and wanted to get the best rate on transferring my pounds to euros. I also have a Halifax Clarity card which i got for making purchases abroad. Looking at the best rate i can get in cash compared to the cost of withdrawing on my card, am i being silly or is it cheaper to withdraw cash abroad - taking into consideration the withdrawal fee (approx £1.50 per £100 withdrawn in cash)? Is this even right?

E.g. locally the best deal on £100 in euros cash is €108.76 at debenhams but with the clarity reward card its €110.87. Even with the £1.50 hit im better off with the card. Is this right?

Voyager2002

Yes, an ATM withdrawal in the country usually costs less than buying the equivalent cash in the UK (obviously if you already have the foreign currency then taking it with you is free).

And what is that 1.50 charge? The best cards do not charge for ATM withdrawals: within Europe the simplest is probably the Metro bank debit card.

zagfles

The Clarity doesn't have a withdrawal fee. It charges interest from when you withdraw but you can minimise that by paying it off asap, you don't need to wait for the statement.

On a short holiday just pay it off when you get back, on a longer holiday you might want to pay it while abroad if you have internet access. Interest works out to something like 3-5p per day per £100 withdrawn.

YorkshireBoy

zagfles wrote: »

Interest works out to something like 3-5p per day per £100 withdrawn.

Which is where the OP's confusion lies. The representative rate of 18.9% APR equates to very nearly 1.5% per month (or £1.50 on their £100 withdrawal).

Gloomendoom

Look at the Barclaycard Visa travel card. No interest and no fees (until Oct 2018).

EpilipticFishGirl

Thank you so much this is very helpful.

A_T

Clarity does not have it's own ATM withdrawal fee abroad. But the bank whose ATM you use might well do.

zagfles

A_T wrote: »

Clarity does not have it's own ATM withdrawal fee abroad. But the bank whose ATM you use might well do.

I've never known an ATM in Europe to charge anything and I've been to most European countries. This seems to be an issue in certain few countries, eg USA and Thailand.

I guess like here some ATMs in pubs, shops etc might charge, but proper bank ATMs in Europe never charge, IME anyway.