Abbey Zero Atm Charges Abroad

NickX

Biggles wrote: »

If you use the Abbey card, you will pay an annual 25.9% on the balance until it is cleared; the exact amount you pay will depend on your statement and payment dates. But if you had an idea how much you might spend, you could fund the card before you go and thus pay no interest at all.

If you use another credit card you will pay 2.5% or 3% of the amount you withdraw, PLUS 2.75% (or more (except Nationwide & Post Office 0%)) in foreign exchange loading. That would easily exceed any interest on the Abbey card.

If you use a debit card (other than Nationwide) you will still pay the 2.75% foreign exchange loading PLUS an indeterminate amount according to which bank you use. But still more than any interest on the Abbey card.

OK, you could pre-load the card before you go to avoid interest altogether, but I would check with Abbey that this is ok first - some Card providers do not like positive balances and there have been stories on here of cards being frozen because the customer has put it into positive balance.

Also when you make purchases using a card which is in credit, then you are not covered by Section 75 protection because you are not actually using credit - although the same would apply to a Debit Card.

Finally if you do use the card for cash withdrawals, you can minimize your interest by paying the card of in full as soon as possible after the withdrawals are made. You must pay the entire balance off though, otherwise the cash withdrawals will become trapped accruing interest every month until the balance is finally cleared.

It can be done, but you just need to be careful.

Biggles

NickX wrote: »

Also when you make purchases using a card which is in credit, then you are not covered by Section 75 protection because you are not actually using credit

You are making your purchase as part of a credit agreement. Egg, for one, encourage putting the card in credit by offering interest, and they do confirm that you are still covered by Section 75 of the Consumer Credit Act when you do this.

NickX

Biggles wrote: »

Egg, for one, encourage putting the card in credit by offering interest, and they do confirm that you are still covered by Section 75 of the Consumer Credit Act when you do this.

Really! Didn't know that, I wonder if Egg are an exception in this instance ?