Popular bank is making a change to fees in time for summer and holidaymakers will be delighted

A POPULAR bank for spending abroad is making a change to fees ahead of summer and it’s good news for holidaymakers.

Revolut has cut fees for some customers meaning they will pay less at certain times.

The online-only bank charges a 1 % fee on exchanges made at weekends.

This includes card payments, ATM withdrawals and in-app currency exchanges.

Customers are traditionally charged additional fees to exchange money on weekends because markets are closed.

However, from April 22, users on paid plans will pay a lower percentage or no fee at all on Saturday or Sunday.

Revolut has five plans that come with different perks and advantages, costing up to £45 a month.

Plus customers will pay 0.5% while those on Premium, Metal and Ultra plans will pay no fee at all.

Those on the standard plan, which is free, will continue paying 1%.

It means someone on the Premium, Metal or Ultra plan making a £1,000 transaction will go from paying a £10 fee to nothing at all.

Plus customers will see their fee fall from £10 to £5 for the same amount.

The fee applies to exchanges made on the Revolut app between 10pm Friday and 11pm on Sunday.

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Revolut doesn’t charge fees for most currencies on weekdays, up to a certain amount – £1,000 in a 30-day period on the free Standard plan and £3,000 on the Plus plan.

There are no limits on weekdays for other plans.

A spokesperson for Revolut said: “The removal of weekend currency exchange fees for our Premium, Metal and Ultra customers – and reduction for Plus customers – is the latest in a long string of benefits for those who love to travel.”

Revolut customers can exchange their money into 36 currencies via the app, which is free to download off the Apple App Store or Google Play.

HOW TO GET THE BEST DEAL WHEN SPENDING ABROAD

Revolut is often named the best card for spending abroad due to its low fees.

Its standard plan is currently MoneySavingExpert’s top pick for prepaid travel cards.

Prepaid cards are not directly linked to a bank account. You add money to them, which you then spend while on holiday.

Wise charges at least 0.33% at all times according to the money saving site, though this can vary depending on the currency.

For instance that’s how much you’ll pay to swap pounds to euros.

That means it beats Revolut at weekends if you have a standard plan which has the 1% fee still, and the Plus plan when it’s cut to 0.5%.

[boxout headline=”Revolut’s new fees at a glance”][/boxout]

But with the fee reduced to zero on the other plans, Revolut is cheaper.

Remember though that these plans are paid for and if you don’t already have one you should compare costs and make sure the other perks are worth it too before signing up.

Note that for both there are also limits on ATM withdrawals, but holidaymakers should avoid taking out cash abroad as it can be among the most expensive ways to spend on holiday.

Credit and debit cards routinely add fees of almost 3% when used abroad, and ATM charges can be as much as 7.95% which would add £8 to a £100 withdrawal.

The best cards for overseas travel have no fees at all so it’s worth comparing your options to get the best deal.

Chase bank, Starling and First Direct don’t charge for using your debit card abroad or making withdrawals.

The Barclaycard Rewards credit card and also doesn’t charge fees on spending or ATM withdrawals outside the UK.

These three are currently MSE’s top picks for travel credit and debit cards.

Whichever card you go for, remember to always opt to pay in local currency, as paying in sterling usually means getting a dismal rate from the merchant you are buying from.

Credit cards can offer you extra protections when spending abroad if things go wrong, but make sure to pay off the bill in full to avoid interest.

Watch out for the exchange rate — not just fees. If a bank is offering Interbank, Mastercard or Visa rates, you are getting a pretty good deal.

You can find what banks’ fees are for spending abroad through price comparison websites like MoneySavingExpert.com.

If you do want to take cash away with you, you’ll likely get the best exchange rates at a bureau de change at a retailer like M&S.

Whatever you do, don’t exchange cash at the airport as these bureau de changes often offer poor exchange rates.

OTHER BANK CHANGES

Chase this week dropped the rate on its standard Saver account, which is tied to the Bank of England base rate.

Customers were getting 3.25% interest but the rate has now been reduced to 3% after the BoE slashed rates from 4.75% to 4.5%.

A slew of other banks have been cutting savings rates following the BoE’s decision earlier this month.

HSBC and NatWest and NS&I are also lowering rates for accounts holders.

The Sun analysed banking data to uncover that returns on more than 180 accounts are scheduled to be slashed in March and April.

Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “It’s so disheartening to see savings rates chopped in the last few days, but it just proves why savers are at the mercy of base rate cuts.

“Not even challenger banks have been able to escape making cuts as the market sentiment for lower interest rates has taken charge.”

Savers facing interest rate cuts can shop around for a better deal to maximise their nest eggs.

You can do this by checking out comparison websites like MoneySavingExpert.com, MoneySupermarket or Moneyfactscompare.co.uk.

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