Brits warned to withdraw cash abroad with caution

Drawing money out from foreign cash machines is costing British holidaymakers £284 million in fees, according to a financial comparison website.

MoneyExpert.com has just published a report which shows that the average individual cash withdrawal of £103 whilst abroad will see the account holder actually charged £107 on their statement.

Brits will make about 63.93 million cash withdrawals this year, spending around £7.1 billion.

The site warns that different accounts’ charges for drawing out money whilst on holiday can vary widely.

Those holding a debit card will averagely have to stump up £4.12 in charges and credit card users £4.33. The site urges holidaymakers to check their bank’s policies as the cheapest cards actually charge no commission.

A MoneyExpert.com spokesman said: “Withdrawing cash from an ATM or over the counter whilst abroad can be the most convenient way of getting hold of your money. It’s also safe and simple. However, most people will have to pay for the privilege and some will pay considerably more than others. With the pound currently very weak against the Euro, unnecessary fees are the last thing holidaymakers need.”

He added: “Many people are likely to be unaware of the charges they can incur for withdrawing cash abroad. If money is tight this year we highly recommend that travellers do some research and find the best deal available.

By Dinah Hatch-