Nationwide account - worth it?

robp

Hi All,

I currently use Cahoot as my current account provider, who have been quite good overall and most importantly, don't insist that I pay in £1000 each month to be entitled to interest (I'm self-employed so have a more sporadic income).

We are going on holiday to the USA this November and I have read how people are getting >$2 to the £ from cashpoints using a Nationwide card.

My question is:- Is it worth opening a Nationwide current account just to get the card, and forgo the interest (as I won't be paying in £1000 a month)?

Thanks for any replies!

Rob

darich

the exchange rate isn't directly linked to the Nationwide card.
The big plus with the NW card is that you aren't charged a handling fee for foreign transactions or cash withdrawals.

i'd imagine that on a 2 week trip (although you don't say how long you'll be there), between cash withdrawals and purchases you could be looking at 50 or more transactions on your card.

50 x 1.75% (or whatever charge you current bank charges) would be way more than any interest you might make on the account.

In that case i'd say it would be worth it.

Rafter

Rob,

Well worth having a Nationwide account just for overseas use.

As well as not getting a 'per transaction charge' now imposed by many banks you also don't get a 2-3% foreign exchange loading fee.

This makes a nationwide cash point card better value that even supposedly 'commission free' travel money from the post office, which makes its money by charging a different rate from buying and selling notes.

Be careful though. In the US and other places people pay for banking services so you may still be charged by the US bank for making a cash withdrawl. Just make sure you make a larger withdrawl each time (say $200+) and the charge shouldn't be too big.

If you are planning to spend $1000 while you are out there $500 in cash and $500 in 20 debit card transactions you should save about £50 in bank charges compared to the worst offenders.

R.

PBA

There's no need to move your current account to Nationwide, just open a savings account with a cash card and stick your holiday fund in there. Or set up a credit card with them for your spending, and just use your cahoot card to withdraw cash when required. Almost everywhere in the States accepts credit cards, so you'd hardly need any cash.

eslick

In May this year we went to the US, opened a Nationwide current account and credit card. We received the bank exchange rate each time we used the cards no handling fee was a bonus a friend of ours with a different card got a much poorer rate and a handling fee. Nationwide I think now charge for debit cards for cash withdrawals sure there was a message about this a few weeks ago.

Overall saved quite a bit with the card especially since we bought laptops over there.

Would recommend this to any one, we also didnt transfer our other accounts to nationwide just using it for holidays.

morg_monster

If they have started charging for using debit cards for cash withdrawals, they haven't updated their T&Cs yet.

Definitely go for it, I opened a nationwide account to use when I went travelling and now 4 years later have changed my current account over to them too, but thats not necessary as people say, just use it for your travels. It will save you a ton of money and I also find that I have never been charged the addition fee common in the US and Canada, but maybe I've just been lucky!

One thing to note - when in Canada recently, I found my debit card wasn't working all the time to pay for things until a bright cashier put it through as a credit card instead, then it worked fine. We weren't charged any extra, the money comes out of your account straightaway as per a usual debit card transaction and I've since found out this is the way these Visa debit cards work abroad. Just something to bear in mind if you find yourself having any problems.

iainkane

I am in the same boat, I only use nationwide for holidays and matched betting. The note above isn't accurate they changed the terms relating to lifting cash from their credit card. Previously if you took cash out of a machine abroad from your credit card you were charged purchase interest, still got the interest free period, and no surcharges. This is still the case on the debit card but you are now charged cash interest when you lift cash abroad, but I don't believe there are nay handling fees though.