If you’re going on a gap year, or on a trip abroad, you’re going to need a card you can use overseas. Traditional high-street banks usually charge fees for taking money out abroad, as well as making transactions for using contactless. A new range of banking apps such as Starling, Chase and Revolut all come with low fees when using your debit card abroad.
| Bank | Best for | Expert score |
|---|---|---|
| Starling | Best for fee free spending & customer service | 4.7/5 |
| first direct | Best for fee free spending & added extras | 4.5/5 |
| Chase | Best for fee free spending & cashback | 4.4/5 |
| Kroo | Best for fee free spending & in-credit interest | 3.9/5 |
Best for fee free spending & cashback
8.6 GreatIf you open a Chase bank account, you can spend on your card abroad and withdraw cash from a foreign ATM free of charge. Chase uses the Mastercard exchange rate when paying in the local currency, but note that there is a monthly withdrawal limit. The account has no monthly maintenance fee and also lets you earn cashback on everyday spending in the UK and abroad for the first year. It also links to a savings account and offers a round-ups feature which rounds up your spending to the nearest pound and saves it in an account paying.
Best for fee free spending & customer service
10 ExcellentStarling has zero fees for spending overseas and was also our winner in the Finder Customer Satisfaction Awards 2023, with 94% of its current account holders saying they would recommend it to a friend. Its app is one of the highest scoring apps in the Apple app store and Google Play Store. Meaning you'll not only benefit from being able to use your card fee free when travelling, but you'll also be able to easily manage your money on the go.
Representative example: If you use an arranged overdraft of £1,200, you'll be charged interest at 15% EAR variable.
Best for fee free spending & added extras
7.7 Greatfirst direct has joined the small club of banks that don't charge fees for using a debit card abroad. You'll find that first direct often has a cash bonus in place if you switch your current account to the bank. Plus, as a first direct current account holder, you get access to its Regular Saver, which has one of the most competitive rates available on the market.
Best for fee free spending & in-credit interest
6.8 Standard| Minimum opening balance | £0 |
|---|---|
| Account fees | £0 |
| Interest (AER) | 3.65% AER |
While you may be focused on spending when looking for a debit card to use abroad, don't forget that you can also earn interest on the money you aren't spending. Kroo Bank has a competitive in-credit interest rate on current account balances up to £85,000, in addition to fee free spending overseas. Meaning you can save money when using your card on holiday and earn interest on whatever you don't spend.
| Minimum opening balance | £0 |
|---|---|
| Account fees | £0 |
| Interest (AER) | 3.65% AER |
"To choose the best card for each category shown above, our experts analysed app ratings, overseas fees, exchange rates, customer service, account access and extra features. In this particular case, these were selected from our list of debit cards that have no fees for being used abroad, not the whole market. If we show any ”promoted” picks, these are based on factors that include special features or offers and the commission we receive. If we show any ”best” picks, there are our banking editor’s top picks for different categories and are chosen based on factors that include cost, purpose, rewards and extras. What you need from a debit card is personal, so these picks are just a guide to help you with your decision."
Revolut Standard Account
7.6 GreatWith Revolut, you can spend on your card fee-free on weekdays at the interbank exchange rate in 150 currencies. At the weekend, you'll be charged a markup of either 0.5% or 1%, depending on the currency. Foreign transactions are also limited to £1,000 a month, after which a 0.5% fee applies, and cash withdrawals are limited to £200 a month (there's a 2% fee after that). Having a Revolut account will also enable you to hold and send money in 29 currencies and you'll be able to earn up RevPoints when you book accommodation through Revolut stays. RevPoints are earned through everyday spending, turning card purchases into perks.
Monese Free Account
5 Standard| Minimum opening balance | £0 |
|---|---|
| Account fees | £0 |
| Interest (AER) | 0% AER |
The Monese multi-currency card means that no matter where you are in the world, you can withdraw money at any ATM at the wholesale currency exchange rate. If you select either the Classic or Premium plan (which are paid-for accounts), you'll be able to spend on your card for free and withdraw cash up to a set limit with no fees (£500 and £1,500 respectively). If you choose the free Simple plan, smaller allowances apply. You can upgrade your plan at any time and downgrade again after your travels.
| Minimum opening balance | £0 |
|---|---|
| Account fees | £0 |
| Interest (AER) | 0% AER |
Curve Lite Account
Curve enables you to connect all of your separate debit and credit cards to your Curve account and then spend from any of them using just a single Curve payment card. The Curve card is free, but there are also 3 premium options, Curve X, Curve Black and Curve Metal, that charge a monthly fee. Spending on your card and withdrawing cash abroad is fee-free, but there are limits in place, depending on the card you've chosen. With the free card and Curve X, you'll be able to withdraw up to £200 a month, rising to £400 a month for Curve Black and £600 a month for Curve Metal. Fee-free spending abroad is capped at £1,000 per month with the free Curve card. There's also an extra 0.5% charge at weekends on Euros and Dollars, and 1.5% on other currencies. Black and Metal customers can also benefit from worldwide travel insurance.
Virgin Money Club M Account - Age 18 and over
| Minimum opening balance | £0.01 |
|---|---|
| Account fees | £12.50 per month |
| Interest (AER) | 1% AER |
This account from Virgin Money charges no monthly fee and no fees for using your debit card for purchases or ATM withdrawals in the UK or abroad. It also offers a whole host of useful benefits. For example, interest is paid on credit balances up to £1,000, you'll be able to move money across to a linked savings account, and you'll have access to an arranged overdraft. What's more, the Virgin Money app is packed full of clever tools to help you get better at budgeting, track and tag your transactions, and set up savings pots and goals. You'll also be able to deposit cheques by taking a photo, and you can log into the app using your face or fingerprint.To apply you'll need to be at least 18 years old and have a good credit history.
Representative example: If you use an arranged overdraft of £1,200, you'll be charged interest at 19.9% EAR variable. Account fee of £12.5 per month.
| Minimum opening balance | £0.01 |
|---|---|
| Account fees | £12.50 per month |
| Interest (AER) | 1% AER |
Monzo Free Account
9.3 ExcellentOpening a Monzo account means you'll be able to use your card for fee-free spending overseas. You'll also be able to withdraw cash abroad for free up to a certain monthly limit, depending on the pricing plan you choose. With the free option, you can withdraw up to £250 fee-free on a rolling 30-day basis in the UK and EEA, and £200 in the rest of the world. Anything over this is charged at 3%. If you choose either the Plus or Premium plans, which charge a monthly fee, you will benefit from higher fee-free withdrawal limits. The Premium plan also comes with mobile phone insurance, worldwide travel insurance for you and your family, plus discounted airport lounge access, making it ideal for regular travellers. All plans allow you to put money aside into different savings pots, while both the Plus and Premium plans also pay interest on your balance.
Representative example: If you use an arranged overdraft of £1,200, you'll be charged interest at 39% EAR variable.
Digital banks and e-money accounts like Monzo, Revolut, Starling and Monese have all of the same functionality as high street current accounts, but also usually offer free transactions and withdrawals abroad. More and more young people are turning to these banking apps for their day-to-day banking, as well as benefits such as overseas spending.
There are other dedicated travel money apps like WeSwap, which can be another great solution for travellers. Finally, you have the traditional travel money cards. Use our table to compare them, as well as other popular providers in the space, and find the right card for you.
When travelling abroad, using a credit or debit card can be a cost effective option to spend money, but there are a couple of factors that will affect how much spending overseas will cost you.
When you use one of these cards overseas, a key part of the cost of that spending is determined by Visa and Mastercard’s own exchange rates. These rates are as close to perfect as it’s possible to get for converting between major currencies.
But whether your particular debit or credit card offers a low-cost way of spending overseas will also depend on your card issuer’s fees on overseas spending. These can vary quite a bit depending on your bank. You can compare overseas fees on popular UK debit cards here.
For example, Starling Bank current account holders are not charged any foreign transaction fees for spending or withdrawing cash on their debit cards when abroad. By contrast, Barclays charges its debit card holders a 2.99% non-Sterling transaction fee for each foreign transaction and cash withdrawal. This can add up over the course of even a short trip abroad.
If you want to find out more about how travel credit cards work and to find the right one for you, head over to our dedicated travel credit cards guide.
Never use a credit card to buy currency at a foreign exchange bureau as this will be treated as a cash withdrawal. This means you could pay a fee as well as interest on that transaction. Using a credit card to load a prepaid travel card with cash might also be counted as a cash withdrawal by some providers, so watch out.”
Prepaid cards are another popular solution for travel money. WeSwap doesn’t fall into the same category as the above digital banks. It is worth an honourable mention though. It’s a global travel card and app which you can use in literally any country. It claims it saves up to 90% vs banks and bureaux. Find out more by heading to WeSwap’s site.
If you want to use a credit card for your overseas spending, you’ll need to choose carefully.
Some credit cards, for example, will charge a foreign transaction fee of between 2.75% and 2.99% for each purchase made. If you also make a cash withdrawal, you could be charged this fee, plus a cash advance fee of around 2.99% on top. In other words, if you withdrew £100, you could be charged a total of £5.98 (£2.99 + £2.99).
Fortunately, there are credit cards designed specifically for overseas use that won’t charge these fees. However, even if your card does not charge foreign usage fees, be warned that most credit cards will still charge interest for cash withdrawals. This applies from the date of the transaction, even if you pay off your balance in full that month, making it a very expensive option.
"If you’re on your hols and your friendly waiter or waitress asks if you want to pay in the local currency or in pounds sterling, always opt for the local currency.
You may think it’s easier to pay in pounds as you’ll then know what you’ve spent – but in fact, it’ll cost you more money.
If you pay in local currency, your bank or credit card company will work out the currency conversion for you, with fees of around 1%. However, if you pay in pounds, the transaction amount is set at the point of sale – at a rate set by the restaurant or shop. This is a way for shops or restaurants to make some extra money, and rates typically start at an eyewatering 7% on each transaction and could also include extra fees.
Beyond always opting for the local currency, another way to keep your card costs down while abroad is to sign up for a debit/credit card or prepaid card with zero or low overseas fees. Fees are typically around 3% and can eat into your holiday money when you would much rather be eating a croissant."
Working out the cheapest way to get your hands on money to spend abroad can be tricky, as there are a few factors to bear in mind.
Before checking out new banking apps or prepaid cards, it’s worth checking what kinds of exchange rates your existing credit or debit cards offer on overseas spending. Some top accounts offer as close to perfect rates as it’s possible to get, with few, if any, fees for spending in Euros or US dollars.
However, if your existing accounts charge you fees for spending or withdrawing cash abroad, it’s best to investigate other options for obtaining your travel money. This is where prepaid travel money cards can come in handy.
Some of the digital banking apps mentioned above can also offer great terms on overseas spending. Apps like Revolut allow customers to keep several different currencies in their account at the same time.
Depending on where you’re going, and which app, or card you use, you’re sure to find a great cost-effective way to spend money abroad.
The Finder team roamed the streets of London to quiz the general public about whether they prefer cash or card. Paid content.
Valued at around £3.7 billion, and having 7.5 million customers, Monzo is a British startup success story.
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