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TenerifeSolicitors
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Joined: 11 Dec 2007
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Location: Club Atlantis - San Eugenio
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 Post subject: WITHDRAWING EUROS ON A UK BANK CARD - BEST RATES |
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A lot of people seem to be really shopping around for the best exchange rates when coming to Tenerife due to the continually declining pound.
Contrary to public opinion, I have discovered that withdrawing money on a UK debit card at the cashpoints here in Tenerife can be really good value.
For instance, Santander bank (Abbey group) give you the option of withdrawing Euros on your UK bank debit card for a pre-fixed wholesale rate of 2% commission, which from a starting rate of 1.23 (official bank rate) equates to an actual rate of 1.20. Other cashpoints *e.g. Caja Canarias, BBVA etc) are offering 2.5% commission (namely 1.19).
The option comes up once you have selected the amount you want to withdraw. It then gives you the option of being billed in local Euros. The exchange rate is sometimes hard to read (e.g. they print a confusing figure for the exchange rate such as "001199" or some other odd looking figure. This would actually mean 1.199 etc. If you stare at the number on the screen, you'll work out what rate they are getting at.
Or you can simply click no and opt to be charged at your UK bank's exchange rate back in the UK. However, If you can find the 2% option, I would grab it! There are cashpoints everywhere, so there's usually no queueing or hassle and all machines operate in English language if you click when prompted.
Shops and supermarkets here are generally offering 1.19 based on the 1.23 official rate this week. However you might get 1.20 if you really waste all day shopping around. Either way, they won't beat 2% commission at the cashpoints such as Santander.
N.B. Make sure that you advise your bank of your overseas trip BEFORE you go. They will then place a marker on your account to authorise transactions in that country. Otherwise, you may end up having your card declined/frozen due to the fraud prevention software. You would then have to faff around making an international call to your bank in the UK trying to sort it out.
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Legal Solutions both in Tenerife and in England or Wales? Tenerife Solicitors can assist from our offices in San Eugenio, Tenerife and in Kent, U.K. Visit www tenerifesolicitors com |
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Sat Sep 06, 2008 3:14 pm
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karlb
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Joined: 20 Jun 2005
Posts: 3962
Location: Tenerife
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Yeap, I always get a good rate using my Nationwide card. For eg at the moment I am getting 1.239 on cash withdrawals.
Over a year ago the best I ever got was 1.489
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Sun Sep 07, 2008 8:35 am
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leahcim
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Joined: 22 Mar 2008
Posts: 33
Location: Buckinghamshire / Torviscas
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I have a Nationwide flex account and use it only for holiday money as it is one of the only cards that doesn't charge you to use it abroad.
All banks try and entice you to use your debit card in shops as you would at home, but don't tell you there is a charge of between £1 & £3 per transaction. This is ok if you take €200 from a cash machine but not so good if you spend €5 in a shop. Its always best to look at the terms of your debit card before using it for small transactions, but it is always safer than taking large amounts of cash with you and a better exchange rate than travellers cheques.
This came from the Martin lewis website in the cheap Travel money section.
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Use your plastic overseas and you could be hit by a thwack of hidden charges. This includes adding a 'load' on the exchange rate so £100 of foreign currency actually costs you £103; cash withdrawal fees on both credit and debit cards; interest charges even if you pay off in full and for some even a penalty each time you spend. More info: Read the full hidden holiday spending charges note.
The Specialist overseas credit cards
Four credit cards avoid most hidden charges and market themselves as specialist overseas plastic. Their hope is you’ll also use them in the UK where they’re not so competitive, yet simply get one only for overseas spending and you beat the system (see my Overseas Wallet blog). However, even on these cards there's a trap, so always follow the golden rule.
Set up a Direct Debit to repay in full every month,
or the interest charges dwarf the cheap currency gains.
On these cards, it's cheaper to spend on them than withdraw cash and spend it.
Overall Winner: Abbey Zero… no exchange rate load and fees free ATM withdrawals.
The Abbey Zero card has no foreign exchange loading anywhere, so you get the best possible exchange rate, and uniquely it doesn't charge a fee for withdrawing cash. The only negative is its high 25.9% cash withdrawal interest rate, which you pay even if you clear the card in full. Yet as that’s roughly £2 for a month per £100, it's still cheaper than the cash withdrawal fees on other cards.
Abbey Zero Quick Stats. European Load: 0%. Worldwide Load: 0%. Cash withdrawal fee: £0. Interest charged on cash withdrawals even if paid off in full: Yes. Cash withdrawal interest: 25.9%.
The Next Best: 0% load worldwide, but charges for cash withdrawals.
While Abbey’s the overall winner, if you’ve already got either the first runner up from the Post Office* or second runner up Nationwide it's hardly worth changing. Neither of these cards add a load, but they do charge a cash withdrawal fee.
Post Office Credit Card Quick Stats. European Load: 0%. Worldwide Load: 0%. Cash withdrawal fee: 2.5% (min £3). Interest charged on cash withdrawals even if paid off in full: Yes. Cash withdrawal interest: 20.83%
Nationwide Credit Card Quick Stats. European Load: 0%. Worldwide Load: 0%. Cash withdrawal fee: 2.5% (min £3). Interest charged on cash withdrawals even if paid off in full: Yes. Cash withdrawal interest: 22.9%
The other one worth a mention is the specialist over 50s card Saga which has no loading in Europe but charges 1% elsewhere and has an ATM fee of 2% (min £2)
The Top Debit Card
The only card of note is Nationwide's Flexaccount Visa Debit card. This beats every card out there, even pipping the specialist credit cards as it doesn’t load, doesn’t charge ATM fees and is interest free (unless you’re overdrawn).
Yet, to get it you need Nationwide's bank account, and while its account isn't bad, it's not the best buy (see the Best Current Account article). For the money savvy willing to play, it's possible to set it up as a second current account and just pre–load it for spending before travelling abroad.
Then again, there is one other reason to stick with a credit card rather than debit card overseas, thanks to Section 75 consumer protection.
Nationwide Debit Card Quick Stats. European Load: 0%. Worldwide Load: 0%. Cash withdrawal fee: None. Interest charged on cash withdrawals even if paid off in full: N/A. Cash withdrawal interest: None unless overdrawn when its 12.9%
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Mon Sep 08, 2008 10:44 pm
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rob
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Joined: 08 Aug 2004
Posts: 7708
Location: Tenerife
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I had a meeting with a foreign exchange company today (which I was going to keep quiet about as yet). There is something new coming which will be very good for holiday spending money.... due to be launched this Dec....watch this space.
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Mon Sep 08, 2008 11:39 pm
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TenerifeSolicitors
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Joined: 11 Dec 2007
Posts: 103
Location: Club Atlantis - San Eugenio
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Rob, we're all on the edge of our seats! 
Leah, most of the deals you mentioned are much of a muchness, as they are all offering between 2% and 2.5% commission on ATM withdrawals. Even Nationwide will take at least 2% commission when you factor in the actual conversion rate.
I don't know of any deals offering better than 2% at an ATM, but if anyone knows of any, we'd love to hear about them.
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Legal Solutions both in Tenerife and in England or Wales? Tenerife Solicitors can assist from our offices in San Eugenio, Tenerife and in Kent, U.K. Visit www tenerifesolicitors com |
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Thu Sep 11, 2008 9:30 am
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andyfowles
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Location: Woking, Home of McLaren F1 Racing. Driven by the winner of the F1 drivers championship 2008.
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Cheaper than withdrawing €'s on an English bank card.....
Open a bank account in Tenerife and transfer money into it using a ForEx company (better than tourist rates, and some do the transfer free depending on the frequency and amount of the transfer) then when in Tenerife simply use your Local Bank cash card to withdraw your own cash from your own bank
Using a ForEx company usually gives you approx 3 centimos above tourist rate and I'm sure withdrawing your own cash from your own bank isn't going to cost you, is it?
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Wed Oct 01, 2008 8:16 pm
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TenerifeSolicitors
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Location: Club Atlantis - San Eugenio
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| andyfowles wrote: | Cheaper than withdrawing €'s on an English bank card.....
Open a bank account in Tenerife and transfer money into it using a ForEx company (better than tourist rates, and some do the transfer free depending on the frequency and amount of the transfer) then when in Tenerife simply use your Local Bank cash card to withdraw your own cash from your own bank
Using a ForEx company usually gives you approx 3 centimos above tourist rate and I'm sure withdrawing your own cash from your own bank isn't going to cost you, is it? |
Do you mean by using a FOREX account designed for currency speculators? Surely that's a little complicated for the average visitor to Tenerife? 
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Legal Solutions both in Tenerife and in England or Wales? Tenerife Solicitors can assist from our offices in San Eugenio, Tenerife and in Kent, U.K. Visit www tenerifesolicitors com |
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Fri Oct 03, 2008 10:35 am
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jenny
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Joined: 29 Aug 2005
Posts: 5288
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Also remember that with a bank account here you are generally charged administration fees and card fees. Check with the bank.
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Fri Oct 03, 2008 11:05 am
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leahcim
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Joined: 22 Mar 2008
Posts: 33
Location: Buckinghamshire / Torviscas
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If you are going to open a spanish account to do this, have a look at the Halifax (soon to be TSB). You can Transfer between a UK Halifax / RBS account and a Halifax es account without any commit ion, handling fee or exchange fee. Most banks charge between £15 & £45 to do this.
The only down side is you only get the tourist rate below £1000 and then a small preferential rate after that. But its still a quick easy and cheap way to move small amounts back and forth and no forms to download fill in and send back as you do with forex etc. |
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Sat Oct 04, 2008 5:09 pm
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andyfowles
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Joined: 03 Apr 2007
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Location: Woking, Home of McLaren F1 Racing. Driven by the winner of the F1 drivers championship 2008.
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| TenerifeSolicitors wrote: | | Do you mean by using a FOREX account designed for currency speculators? Surely that's a little complicated for the average visitor to Tenerife? |
Yes, that's exactly what I mean, it surprising the lengths some people will go to for an extra 3 centimos to the £1 and actually not complicated at all.
Online banking, online pension fund management, online spread betting, lots of people do these things...... what is so much more complicated about using FOREX to move currency?
It also depends how often you visit Tenerife 
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Tue Oct 14, 2008 8:49 pm
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lisaloo
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Joined: 25 May 2007
Posts: 105
Location: Wales
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Hi
I am Scottish and always looking to squueze an extra cent from my £. I have just found a new top up card which has the mastercard logo but is not a credit card. It gives really good exchange rate on your money, less than interbank rate but more than most 1.267 today. Only cost 1 euro 50 to take money out of the ATM and can be used online and in shops and banks like a credit card. You top up online using bank transfer or debit/credit card before you go with plans to top up via sms in the future. I think it is a great idea and will save a few quid. Only need to top up before I go away or add to my card when the rate is at its best. I think it is caleed fairfx. I do not work for these people just thought I would share what I thought was a brill idea. I already use HIFx for house money in Tenerife which saved me thousands.
Lisaloo |
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Sat Oct 18, 2008 9:14 am
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lisaloo
Senior Reefer
Joined: 25 May 2007
Posts: 105
Location: Wales
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| sorry for the typo called Fairfx not caleed |
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Sat Oct 18, 2008 9:16 am
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