Using your money when travelling abroad often incurs extra charges. Most banks charge you when spending money on your debit card abroad, and when you withdraw cash. These added costs may seem small, but they add up considerably during a trip abroad. However, it doesn’t need to be this way. Nowadays there are plenty of options for UK residents to spend their money abroad and avoid overspending on hefty fees. Below is a list of the four banks that provide the best debit debit cards for travelling abroad.
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Pro tips
Always pay in the local currency, never in pound sterling
When making purchases abroad and paying by card, the merchant will ask you whether you want to pay in the local currency or in pounds. To avoid overspending, always pay in the local currency.
Briefly, when using the local currency, your bank will apply the card issuer’s exchange rate to convert the price into sterling. But if you pay in pounds, the conversion into the local currency happens at the point of sale. The latter almost always involves worse exchange rates, giving you less value for your money, and often incurs extra fees.
Therefore, paying in the local currency will save you money with better exchange rates and by avoiding fees.
Check that cash machines don’t charge their own fees
While this article will point to products that won’t charge you fees when withdrawing cash abroad, the cash machines providers may still have their own extra fees. This happens quite regularly in the UK as well.
Therefore, you should always check that the cash machines you’re using are free and don’t have any extra charges. Usually this will be straightforward to check, and the machines should clearly indicate whether they charge a fee or not.
The cards and account features
Monzo
Monzo is an app-based digital bank. You can quickly and easily open an account by downloading the app on the App Store or Google Play.
Monzo’s main feature that attracts people who frequently travel abroad is the fee-free spending. You can use your Monzo debit card abroad with no additional fees, and avoid overspending. As a quick reminder, remember to always pay in the local currency because.
Monzo also offers allowances to withdraw cash without fees when travelling abroad. If Monzo is your main bank account, you can withdraw unlimited amounts of money in the EEA. Check this page on their website to see the requirements for Monzo to be your main account. If it’s not your main account, you can still withdraw £400 every 30 days fee-free in the EEA.
Outside the EEA, the allowance is of £200 withdrawals without fees every 30 days. If you ever exceed your allowance, there is a 3% fee anywhere in the world.
The app has a few other useful features for travelling abroad. You can easily see Mastercard’s exchange rates in the app, and it automatically keeps track of your spending while abroad.
With Monzo you also get access to their savings account with a 4.1% AER and other savings accounts with third-party banks through the app.
The features listed above refer to the free basic account. There are also plans with a monthly fee that give additional benefits. However, for most people the free account will provide everything they need.
Summary for Monzo
Fee-free debit card spending: Yes
Fee-free cash withdrawals: Yes, with varying allowances
Starling Bank
Starling Bank is another British digital bank. You can easily open an account by downloading the app on the App Store or Google Play. Alternatively, you can also apply and access online banking services on their website.
Like Monzo, Starling Bank has no fees for using your debit card abroad. You also get unlimited fee-free withdrawals abroad.
Moreover, it’s very easy to see Mastercards’s exchange rates in the app.
Starling Bank also offers 3.25% AER interest on up to £5,000 in your current account.
Summary for Starling Bank
Fee-free debit card spending: Yes
Fee-free cash withdrawals: Yes, unlimited
Chase
The American bank JPMorgan Chase now offers services in the UK as an app-based digital bank. To create an account, you need to download the app on the App Store or Google Play.
They offer one of the best debit cards for travelling abroad for UK residents. First, you’ll get fee-free spending with your Mastercard debit card abroad. You’ll also have fee-free cash withdrawals, limited to £1,500 a month.
With Chase you’ll also get a few more interesting perks. Firstly, they’ll pay you 1% AER interest on your account balance. And secondly, you’ll get 1% cashback when you spend with your debit card, whether in the UK or abroad, for a maximum of £15 a month. The cashback offer is valid for the first 12 months of your account. However, you can keep receiving the cashback if you pay £1,500 a month into your account.
Summary for Chase
Fee-free debit card spending: Yes
Fee-free cash withdrawals: Yes, limited to £1,500 a month
Kroo
Kroo is another recent entry to the British digital banking landscape. If you want to create an account, you need to download the app on the App Store or Google Play.
Like the other banks listed in this post, Kroo offers fee-free spending with your debit card abroad. The app also lets you check Visa’s current exchange rates easily, so you can keep track of your spending in sterling. For these reasons, it makes the cut of the best debit cards for travelling abroad.
Kroo has fee-free cash withdrawals abroad, up to £200 a month. However, this offer runs until 31 October 2024, and they may start charging past this date.
In addition, Kroo pays you interest on your account balance, with an impressive 4.35% AER.
Summary for Kroo
Fee-free debit card spending: Yes
Fee-free cash withdrawals: Yes, up to £200 a month (until 31 October 2024)
Which one is the best?
All of them offer what you need to travel abroad and avoid overspending in fees. So for most people, any of them will do the job. In general, I’d recommend them all as offering the best debit cards for travelling abroad in the UK.
However, Starling Bank offers the best products overall in my opinion. They have no fees or limits for using your card or withdrawing cash abroad, which is the main travel benefit you want. Moreover, it provides good value with interest paid on your balance. Finally, their sleek app is easy to use and allows you to keep track of your spending while abroad.
Chase has great offers as well on all that you need to travel abroad and avoid unwanted fees. The interest on your balance and cashback also offer decent value.
Monzo has a great app, but their offer on fee-free withdrawals abroad has lower allowances. Their paid plans have many useful travel perks, but most people will get everything they need from the free plan.
Kroo has a great interest rate on your money, but their current offer for fee-free withdrawals abroad has a lower allowance, and currently only runs until October 2024.