 Poster: A snowHead
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The Nationwide building society is to start charging for use of its debit cards abroad from the 1st November. For the first time, a 2% exchange rate loading will be applied to all foreign transactions plus a £1 charge on each cash withdrawal. ...
After countless recommendations in the forum, many snow-heads use the Nationwide's debit card for purchases or cash withdrawals when they are away and are not only charged no fee or commission but are given a 'wholesale' exchange rate, in effect giving them 2-6% more for their money than other cards do.
While one or two credit cards have turned up recently offering 'free' foreign purchases, the Nationwide's debit card has long been the only way (we know of) to get access to cash when abroad without incurring fees.
Not long ago, Nationwide implemented a 1% charge on transactions outside Europe to 'test the water' and now have decided to charge 2% on all foreign transactions from 1st November, plus an extra £1 for cash from an ATM.
Ironically, this makes the Nationwide's own credit card cheaper to use abroad than their debit card (no plans have been announced yet to change the credit card's charging structure).
However, all is not lost.
The Metro bank have just opened and are issuing debit cards with their current accounts that can be used abroad without charges or commission and... use the Mastercard wholesale rate to calculate what you get. Essentially what the Nationwide were offering via Visa.
Right now though, Metro Bank is so new that you can only open an account at a branch, of which there is only one: in Holborn London. Three more branches are due to be opened by the end of September but more importantly, they say that online banking is due to be available from this weekend and it should be possible to open new account online by the end of this month.
Metro Bank
Nationwide Account changes
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Obviously A snowHead isn't a real person
Obviously A snowHead isn't a real person
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bad news, but very helpful post - thanks.
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Well, the person's real but it's just a made up name, see?
Well, the person's real but it's just a made up name, see?
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admin, what smithski said.
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You need to Login to know who's really who.
You need to Login to know who's really who.
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Oh burger 
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Anyway, snowHeads is much more fun if you do.
Anyway, snowHeads is much more fun if you do.
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Well that is their competitive advantage for a load of users gone! And not sure how they figure a Europe only, no winter sports insurance policy for 2 people is worth £80 either, doesn't strike me as a very good deal and guess they are hoping to sucker people into upgrading to recover costs.
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You'll need to Register first of course.
You'll need to Register first of course.
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I get a similar policy free with my bank account. I just bin it as it's far cheaper for me to buy an annual policy with snowsports for my daughter and me than it is to upgrade the free one.
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Colin B, my bank account one does not cover me for off-piste without a guide - so it's a no-no for me.
davkt, Nationwide have woken up to the fact that free international banking does not pay - my guess is that Metro will dump it once they have gained their target market share.
PS who the hell are Metro? Anybody know their liquidity? admin is clearly confident in them, but maybe I don't have his assets. 
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achilles, Hmm, but then Nationwide have attracted a load of customers with exactly the free overseas transactions and cash, a quick look now shows there are cheaper options than Nationwide once these fees come in so presumably all those folks savvy enough to be attracted in the first place will be savvy enough to take their business else where.
Colin B, yep thats where mine will be going (plus think next years policy might need to be a Dogtags one given how few people seem to take on offering cover for offshore yacht racing!)
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You'll get to see more forums and be part of the best ski club on the net.
You'll get to see more forums and be part of the best ski club on the net.
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got a mail response fram nwide when asking about the charges on european credit card txns after november an was advised they would remain charge free bet the rate applied to teh txn's goes dowen though
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davkt, the question is to where? I rather fancy a bank that's got sound finance - despite government backing for banks I don't fancy the hassle and worry of mine going down. HSBC And First Direct are fine - but even now Nationwide is probably better than them with its credit card. Metro? Well I have seen their hype - but I haven't a scooby how sound they are.
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snowHeads are a friendly bunch.
snowHeads are a friendly bunch.
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achilles, I don't know either but if you've got the inclination to find out, I'm sure their capitalisation etc. is all publicly available.
They are the first new bank to be authorised to operate on the high st in the UK for over 100 years, apparently. I'm assuming that's because there are stringent regulations to comply with, although as we've seen with the 'big boys' there's always a way to get far enough around the rules to get yourself in the crap. I just think that a start-up in the field is going to get looked at very closely indeed.
Anyway, you don't have to transfer the whole content of your current bulging shoebox of money in to a new account. In these days of internet banking, there's no reason not to just flip funds into an account like that as and when u need it and according to how things go, use them progressively more or less.
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And love to help out and answer questions and of course, read each other's snow reports.
And love to help out and answer questions and of course, read each other's snow reports.
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achilles, Yup, exactly. I'm taking a good look at Metro but have far more questions than answers at the moment. Looks like something of a backlash building on the net, not sure if enough of the membership will get involved to push a change through (some what doubt it especially given the tactics the board use like unless told different taking silence as a vote in their favour in some recent votes!). But it could present some other bank the opportunity to fill the niche Nationwide just vacated. It has obviously made sense for them to offer this over the past decade or two which suggests there may be a way for someone to come up with a profitable product to fill the gap.
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admin, Northern Rock met the regulator's requirements at the time. But maybe the regulators went to the same schools and universities, and drink at the same watering holes as those they regulate. Anyway, I like to make my own take on where I stick my dosh - and last time I looked I could find out precious little about Metro. Not too keen on having to many accounts - becomes a hassle if doing a tax return.
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You know it makes sense.
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I may use Metro in the same way as I've been using Nationwide, as a holiday cash fund only, transferring a couple of hundred in monthly. I'm quite happy with my main current account for other purposes.
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Otherwise you'll just go on seeing the one name:
Otherwise you'll just go on seeing the one name:
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Another option for those that spend a lot of euros is to open a French bank account and buy euro's at wholesale rates and transfer across.
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Poster: A snowHead
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| Colin B wrote: |
| I may use Metro in the same way as I've been using Nationwide, as a holiday cash fund only, transferring a couple of hundred in monthly...... |
My guess is that, quite reasonably, there were a lot like you - and Nationwide discovered that a loss-leader was mostly a loss-maker.
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Obviously A snowHead isn't a real person
Obviously A snowHead isn't a real person
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The only problem with the French bank account option are the annual charges for things like debit cards, and account fees, which makes it an expensive method of payment. Transfers from the UK cost money. As my French account is used solely for apartment transactions and purchases, I would need another account. 90€ a year for the privilege of another debit card each doesn't make sense.
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Well, the person's real but it's just a made up name, see?
Well, the person's real but it's just a made up name, see?
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achilles,
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My guess is that, quite reasonably, there were a lot like you - and Nationwide discovered that a loss-leader was mostly a loss-maker.
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Yes, they've said that they're targeting people like this. I'm annoyed, though, because I actually use Nationwide as my main account and do not feel remotely compensated by the inadequate travel insurance they're offering. All very irritating. I also have a Nationwide credit card, which I do use just for travelling (I use a charity cc in this country) probably they'll soon negate the benefits of those as well.
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You need to Login to know who's really who.
You need to Login to know who's really who.
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Hurtle, even though we use our account mainly for use in Europe, I also use it for transactions in the UK involved with my travel, and also for things I buy for the apartment. There's quite a bit of income goes into it over a year.
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Anyway, snowHeads is much more fun if you do.
Anyway, snowHeads is much more fun if you do.
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Having said that I also have a NW credit card, a child's account and have had some investments with them. For a variety of reasons I've never liked them enough to want to use them as my main bank.
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You'll need to Register first of course.
You'll need to Register first of course.
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I was drawn to the Nationwide by this facility in the first place but it has since become my main account and I have taken other 'products' from them since as a result.
I felt that I was benefiting from it's mutual status through policies like the one being discussed here and even though there are a few idiosyncrasies about the way they work, I was always happy to overlook these while I felt the company operated under this slightly more 'friendly' business model.
Now though, the new man at the helm seems to think they're better off competing with the high street banks by disposing of their USP's and instead, trying to be the same as them - honestly, who wants yet another free travel policy that doesn't include the things a snow-head needs.
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admin, the odd thing is that I have a long-dormant current account with them (had to have one for e-savings, IIRC) and was at long last was thinking of switching over fully. I've rather gone off the idea, now.
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You'll get to see more forums and be part of the best ski club on the net.
You'll get to see more forums and be part of the best ski club on the net.
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admin, nail on head.
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A lot of criticism of "free" insurance. RBS Royalties insurance covers my skiing needs (on piste) family of four, urrent account costs £120 a year and a 10% discount off one TO holiday covers that easily. Accept that harder core skiers may not think the insurance is of any use, but it covers the rest of us nicely (and not just in Europe).
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snowHeads are a friendly bunch.
snowHeads are a friendly bunch.
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I have a nationwide card that I only ever use for cash abroad. I'll be closing my account after November I think ....
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And love to help out and answer questions and of course, read each other's snow reports.
And love to help out and answer questions and of course, read each other's snow reports.
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"FREE Coin Counting
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Our Magic Money Machines turn coins into cash"
WTF?
Last time I checked coins were in fact cash and were accepted by any high street establishment.
What a pile of tosh.
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...sorry that quote was from the metro banks website.
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You know it makes sense.
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Personally I use the FairFX Card which is a pre-loaded debit card funded using my bank debit card. I've been using it now for well over a year and get great rates with the added advantage I know the cost of my Euro's or USD in advance.
I'm happy to donate 50% of a small commission to SnowHeads which I receive from FairFX for any SnowHeads that join via the link on my website. You also get a free card joining this way.
Just click on the Black Card on my welcome page.
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Otherwise you'll just go on seeing the one name:
Otherwise you'll just go on seeing the one name:
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Jivebaby, I see that's recommended by moneysavingexpert.com. Looks like the only downside is that there is a flat fee for getting cash out of an ATM. I may well go with this, thanks for the offer.
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Poster: A snowHead
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Hurtle, You're more than welcome and I hope you find it as useful as I do: I'll let you knwo when I've passed on the donation to Snowheads 
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Obviously A snowHead isn't a real person
Obviously A snowHead isn't a real person
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Hurtle, I tend to use the card just one to withdraw cash and then use it for payments for nearly everything else which avoid the cash withdrawal charge and in restaurants avoid's the hassle of finding dealing with change etc.
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Well, the person's real but it's just a made up name, see?
Well, the person's real but it's just a made up name, see?
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Jivebaby, that makes sense, I too use a credit card wherever possible in preference to cash. The only thing I've got to check is whether using FairFX as a credit card is more advantageous than using my existing Nationwide credit card abroad: I guess that the best way of doing that is to use them both on a trip and see which turns out to have used the better rate of exchange.
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You need to Login to know who's really who.
You need to Login to know who's really who.
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Anyway, snowHeads is much more fun if you do.
Anyway, snowHeads is much more fun if you do.
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Jivebaby, that's all perfectly true for most bank cards but perhaps you're not aware, the Nationwide credit card (and debit card until 1st Nov) uses the Visa wholesale rate of exchange. It's always within a tenth or two of a cent of the interbank rate.
FairFX's rate is good compared to most but it would appear the Nationwide CC is better.
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You'll need to Register first of course.
You'll need to Register first of course.
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Jivebaby, the changes announced only applied to the debit card and not the credit card.
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Hells Bells,
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the changes announced only applied to the debit card and not the credit card.
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I think everyone has noted that, however as you cannot pre-load a credit card, cash withdrawals are always charged at a penal rate (cash advance fee) and attract interest immediately until the bill is paid in full.
Normal card transactions such as ski hire, lift passes, fuel, restaurants will be charged at the normal rate if you use the card ILO cash.
I cannot offer any detailed comment upon the value of the credit card or what FX rates/margins are applied to it, however it looks like the Visa spread is around 1.4-1.5% off wholesale rates which is close to the 1.2-1.3% levied by FairFX for small transactions, which is literally the cost of a small beer over say €1,500 or so. I've just checked my wholesale rate feeds on IGIndex and currency charts for the last 48 hours to check those results: The difference here is that athough there will be a withdrawal fee, it is not a cash advance a the transaction has alreaady been pre-funded.
There is no such thing as a free lunch, but some lunches will be more expensive than others.
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You'll get to see more forums and be part of the best ski club on the net.
You'll get to see more forums and be part of the best ski club on the net.
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Hells Bells, indeed, though who knows how long that will last.
admin, thanks, I had a feeling that Nationwide cc trumped every other cc abroad at the moment.
Jivebaby, I'll still probably get a FairFX card, though, to get cash (as infrequently as possibly, to avoid withdrawal fees) and to use as a spare/back-up cc abroad. I would never get cash out on a Nationwide cc.
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I don't think NW CC take anything off. I used mine a couple of weeks ago in France and looking at the statement I got 1.198753 on 27th July. As far as I can tell that was the interbank rate.
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FAQ
