Brits given £100 holiday warning that Lloyds bank switch can actually save you money on
If you're heading off on holiday soon you might want to consider making a banking change to ensure you're spending money the right way while abroad.
Not every transaction is going to cost you exactly what it says on the tin, there's all sorts of ways you can spend more than you were expecting and it all builds up in time.
Due to the way currency conversion works trying to take out cash while abroad can see you lose a bit of money in the transaction without even realising it, it's only a small extra cost but if you want to be conscious of your pounds and pennies on your travels then it's worth knowing how it all works.
Or at least it's worth listening to Martin Lewis when he explains it for you on This Morning, as he's pointed out a particular credit card which means you can spend less without the people you're buying from feeling short changed.
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His top pick for the card he reckons you should be using abroad is the Lloyd's Ultra credit card.
"Why is it the top pick?" the Money Saving Expert asked rhetorically before diving into the explanation.
"Because on spending in the UK and abroad, it gives you one percent cash back. So if you're spending abroad, you get a near perfect exchange rate, the same exchange rate the bank does.
"So something that costs £100 worth of euros, you also get one percent cash back on it. So effectively, it cost you £99 rather than £103.
"The only issue with it, of course, it's a credit card, so you have to pay it off in full at the end of every month to ensure there's no interest, but it will charge you interest even if you pay in full on cash withdrawals.
"There's no cash withdrawal fee. So, you want to use this card for your spending, you don't want to go and get the money out of a cash machine abroad and spend that."
He reassured Brits who'd be using this slice of plastic for their holiday that 'if you're going to most parts of the developed world' you'd be in places that could take the credit card.
Lewis said that it was his 'top pick' for holiday cards because provided you could keep paying it off each month as you're supposed to then you're getting one percent cash back on your transactions which over the long term is a pretty decent benefit.
He mentioned other picks were the the Chase debit card which was easy to get and offered 'near-perfect exchange rates' when spending abroad, though it didn't give cash back when overseas.
His other suggestion was a First Direct account, saying you'd need to be 'willing to switch', but the bank is 'paying you £200 to switch' and has 'a top overseas spending card.
Topics: Money, Martin Lewis
Joe Harker