Brits heading to Spain or Greece warned ‘move money out of bank account’

UK tourists heading abroad to the likes of Spain, Greece, and Portugal have been urged to make a key bank account change before they fly off. Brit holidaymakers holidaying in the European Union and beyond have been urged to take action over their bank accounts.

Holidaymakers are being urged to make a key bank account change ahead of going away to avoid high fees. For frequent travellers, opening a new account or even switching banks before their next trip could be particularly beneficial.

Financial ratings company Defaqto is warning customers that several popular current accounts still charge them for using their cards. A non-sterling transaction fee – which is usually between 2.75% and 2.99% – or an ATM withdrawal fee could hit tourists hard in the pockets.

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Katie Brain, a banking expert at Defaqto said: “If you’re happy to pay a monthly charge for a bank account in exchange for things like travel insurance, then you could look into added value current accounts which don’t charge fees overseas.

“Two-thirds of all added value accounts in the UK offer no fees abroad now.” Katie said: “It’s important to review the levels of cover offered and consider whether you will use all of the benefits included. If not, then these may not be the best option for you.”

Katie added: “A credit card with a 0% purchase offer can be a good option when travelling abroad because you can spread out your holiday spending over the 0% period.” On the Money Saving Expert website, Martin Lewis’ team says: “Chase is our top-pick debit card – it gives 1% cashback on most spending (max £15/month), even abroad where it offers a near perfect exchange rate (after a year you need to pay in £1,500/month to continue getting the cashback).

“Its linked boosted 5.1% AER saver tops our tables, though it includes a 1% AER bonus which ends 16 January 2025, so the rate will drop then. You do have to open a new bank account, but it’s easy to get, only requiring an ID check instead of a full credit-check. There’s a £1,500/month limit on ATM withdrawals.”