Best travel cards to ditch foreign fees and get FREE cash withdrawals on your next holiday

Credit: Xavier Lorenzo HOLIDAYMAKERS could save money on their next trip by choosing the right travel card. Using your everyday debit card abroad can come with foreign transaction fees, while taking cash out at an overseas ATM can trigger additional charges. Choosing the right travel card could help you avoid extra fees and save money when spending abroad. Credit: d3sign But a number of banks and specialist providers offer cards designed for spending abroad, with some charging no extra fees for purchases or cash withdrawals. Some also offer rewards, cashback, multi-currency accounts and other perks. Sign up for the Money newsletter Thank you! Here are some of the best travel cards to consider before your next holiday. We’ve picked these cards based on their overseas fees, exchange rates, ATM charges, rewards and travel perks – and highlighted what each one is best for to help you find the right fit for you: Best for traditional bankingBest for frequent travellersBest for familiesBest for cashbackBest for no feesBest for pre-paid spendingBest for multi-currency spending How do travel cards work? A travel card can be a debit, prepaid or app-based card that is designed to make spending abroad cheaper and easier. Depending on the provider, you may be able to spend in another currency without paying a foreign transaction fee, withdraw cash without an additional charge or exchange money in advance. Some cards allow you to hold multiple currencies, while others simply let you spend directly from your pounds account. Most read in Money Travel cards can be particularly useful if your normal bank charges a fee every time you make a purchase overseas. But it’s important to check the small print, as some providers impose limits on fee-free cash withdrawals or currency exchanges. Which travel cards are free to use abroad? Several UK debit cards currently allow you to spend abroad without a foreign transaction fee. Starling, First Direct and Chase are among some of the providers as fee-free options for overseas spending, while Monzo and Revolut also offers fee-free foreign purchases. However, there can be differences when it comes to cash withdrawals. For example, Starling doesn’t charge a fee for overseas cash withdrawals, while Monzo has withdrawal allowances that depend on where you are travelling and whether Monzo is your main bank. Travel card need-to-knows Before choosing a card, check: Foreign transaction fees: The charge some providers add when you spend in another currency. ATM fees: Check whether cash withdrawals are free and whether there is a monthly or daily limit. Exchange rates: A card with no transaction fee isn’t necessarily the cheapest if it offers a poor exchange rate. Currency options: Useful if you’re travelling to several countries. Rewards: Some cards offer cashback, interest or other perks. Monthly fees: Premium accounts can charge a subscription. Spending limits: Particularly important if you’re planning to put a large amount of holiday spending on the card. And when paying abroad, always choose to pay in the local currency rather than pounds if you’re given the choice. Using the right card abroad could help you avoid fees when making everyday purchases Credit: andreswd Top travel cards to use abroad Starling Bank Key info: Starling’s current account comes with a debit card that has no fees for spending abroad and no additional fee for cash withdrawals overseas. It uses the Mastercard exchange rate and has no monthly account fee. Rewards: Starling doesn’t offer cashback specifically for overseas spending. Chase Key info: Chase’s current account comes with a debit card that doesn’t charge for card payments or cash withdrawals abroad. There is no monthly fee for the standard account. Rewards: Eligible customers can earn 2% cashback on qualifying spending, up to £20 a month. However, cashback isn’t paid on purchases made outside the UK or Channel Islands or in currencies other than pounds. Monzo Key info: Monzo doesn’t charge a fee for card purchases abroad and uses the Mastercard exchange rate. Cash withdrawal allowances depend on where you’re travelling and whether Monzo is your main bank account. Rewards: The standard account doesn’t offer cashback specifically for overseas spending. Revolut Key info: Revolut’s standard account has no monthly subscription fee. It lets you exchange, hold and spend multiple currencies, although free exchange and cash withdrawal allowances depend on your plan and usage. Rewards: Rewards vary depending on your Revolut plan and current offers. Wise Key info: Wise is a multi-currency account that lets customers hold and spend money in different currencies. Its card uses the mid-market exchange rate, although conversion fees can apply. Cash withdrawals are free up to a monthly allowance, after which charges apply. Rewards: Wise doesn’t offer traditional cashback on its standard card. Post Office Travel Money Card Key info: The Post Office Travel Money Card is a prepaid option rather than a traditional bank debit card. You can load money onto it and hold up to 22 currencies. You can top it up through the app or online, or pick one up in a Post Office branch. There are no foreign transaction fees when spending in a supported currency, but fees can apply for cash withdrawals and spending in unsupported currencies. A 3% cross-border fee applies when the card is used in a country where the local currency isn’t supported. Rewards: No cashback or points scheme. First Direct Key info: First Direct’s 1st Account comes with a debit card that can be used abroad without foreign transaction fees. It also doesn’t charge for cash withdrawals overseas. Rewards: Rewards and switching incentives can vary, so check the latest offer before applying. Travel cards can make it easier to keep track of your spending while you’re abroad Credit: Oscar Wong Which travel card offers the best rewards? If you’re looking for rewards, the answer isn’t necessarily the card with the lowest overseas fees. Chase is currently one of the more interesting options for cashback, but its 2% cashback offer applies to eligible UK and Channel Islands spending rather than purchases made abroad. For overseas spending itself, the biggest benefit from most travel cards comes from avoiding fees, rather than earning rewards. This means a card with no cashback can still leave you better off than a card offering rewards if the latter charges foreign transaction fees. Can you get free travel insurance with a travel card? Some premium bank accounts and cards include travel insurance as part of their package, although this isn’t a standard feature of most fee-free travel debit cards. If travel insurance is included, check exactly what is covered before relying on it. Policies can have exclusions around pre-existing medical conditions, trip length, destinations, activities and the age of travellers. It’s also worth checking whether you need to pay for your trip using the card to qualify for the cover. What are the alternatives to travel cards? If you don’t want to open a dedicated travel card, you can use your existing debit or credit card abroad – but check the fees first, as some providers charge for foreign transactions and cash withdrawals. You could also take cash in the local currency, although carrying large amounts isn’t ideal and you’ll need to consider exchange rates and safety. Another option is a travel credit card, which can offer fee-free spending abroad and may come with rewards such as cashback or airline points. However, you’ll need to watch out for interest charges if you don’t clear the balance in full. For some travellers, a prepaid travel card can also be useful. You load it with money before you go, which can help you stick to a holiday budget and keep your spending separate from your main bank account.