Metro Bank discontinues fee-exempt foreign spending
Metro Bank, a UK-based bank with around three million customers, has announced changes to its debit card fees for transactions made abroad. The change, effective from August 29, will see a 2.99% fee applied to all debit card transactions outside the UK.
This decision comes after a string of changes to Metro Bank's savings accounts, including the slashing of the Instant Access Saver rate from a market-leading 5.22% to 4.51%. The bank also cut the rate on its Current Limited Edition savings accounts to 3.95%, effective from July 8.
The new fee will apply to debit card transactions made in all foreign countries. For a family making three ATM withdrawals of £100 each, the total fee could amount to £13.47. In addition, customers withdrawing cash from their bank account abroad will pay an additional £1.50 ATM fee.
These changes have not been met with enthusiasm by all customers. Some have expressed disappointment and are considering switching to a different bank due to these fees. However, Metro Bank has stated that the changes are necessary to cover the increasing costs associated with international transactions and currency conversions.
The charges for using a debit card outside the UK by Metro Bank can quickly rack up. For instance, for 20 debit card transactions averaging £30 each, Metro Bank would charge a total of £17.94. This could amount to £31.41 just to use their debit card while abroad.
However, there are alternatives for those looking to avoid these fees. Some banks and building societies do not charge fees for using a debit card outside the UK, but ATM withdrawals may still incur a fee. Another option is to take out a fee-free travel credit card.
The Currensea card is a debit card that links to your existing current account, with no fees on spending or ATM withdrawals abroad. Similarly, the Kroo Current Account offers 4.35% AER interest, while the First Direct 1st Account provides a £250 interest-free overdraft. The Virgin Money M Plus Account offers 2.02% AER interest, and the Starling Bank Current Account provides 3.25% AER interest.
Chase also offers a Current Account with 1% cashback on purchases for 12 months. Defaqto, a financial ratings company, has listed these top-five current accounts with no monthly charge and no fees when you use your card abroad.
In conclusion, Metro Bank's decision to introduce fees for debit card transactions made abroad will affect its customers who travel frequently. However, alternatives such as fee-free travel credit cards and other banks offering no fees for using a debit card abroad are available. It is essential for customers to compare their options and choose the best account that suits their needs.
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