On 28th June 2023, First Direct scrapped debit card foreign transaction fees for new and existing customers. The change brings First Direct in line with a number of app-only banks such as Starling Bank and Monzo that currently allow customers to spend abroad fee-free.
In this article, we explain what has changed to First Direct's foreign transaction fees and how First Direct compares to other banks when spending abroad. We also share the best ways to take money on your next holiday.
How has First Direct's foreign transaction fees changed?
First Direct has stopped charging foreign transaction fees on their debit cards for new and existing customers. This means that First Direct customers can now use their debit cards abroad without incurring any additional fees. It is important to note, however, that the changes have been made to the First Direct debit card only and foreign transaction fees will still be applicable on First Direct credit cards.
While First Direct has scrapped its fees when spending abroad, there may still be additional charges such as ATM fees charged by the ATM provider.
How much does First Direct charge for spending abroad?
The following tables show how much First Direct charges for foreign transaction fees:
Debit card foreign transaction fees
| Debit card spending abroad | Cash withdrawals abroad (or in a foreign currency) | ATM card limit | |
| Prior to 28/06/23 | 2.75% | 2.75% plus 2% (minimum £1.75, maximum £5) | Up to £500 |
| From 28/06/23 | 0% | 0% | Up to £500 |
Credit card foreign transaction fees
| Debit card spending abroad | Cash withdrawals abroad (or in a foreign currency) | ATM card limit | |
| Credit or Gold card | 2.99% | 2.99% (minimum £3) | Up to £500 in local currency |
How does First Direct compare to other banks?
First Direct no longer charging foreign transaction fees makes it a more attractive choice when it comes to travelling abroad. Previously, First Direct customers would need to take an alternative method abroad with them if they wanted to avoid paying a transaction fee, however, now debit cardholders will be able to spend using their existing card. Additionally, those who do not currently hold a First Direct current account but wish to benefit from no foreign transaction fees can also benefit from a £175 switching offer if they switch their current bank account.
In the following table, we show how First Direct compares to other UK current accounts when spending abroad using a debit card. For more information on the accounts mentioned, read our independent reviews:
First Direct vs other bank accounts
| First Direct | HSBC | Chase | Monzo | Starling Bank | |
| Fee-free spending abroad |  |
2.75%* | |
|
|
| Free ATM withdrawals abroad | |
2% (minimum £1.75, maximum £5) on withdrawals using a debit card* | |
£200/£250 fee-free (3% thereafter)** | |
| Cashback |  |
|
|
|
|
| Switching offer | |
|
|
|
|
| Current account interest | |
|
1.00% | |
0.05% |
*Excludes HSBC Global Money account **If Monzo is your main bank account you can withdraw £250 for free within EEA every 30 days, otherwise the limit is £200. There is a 3% fee after the limit
Best ways to take money abroad
While First Direct has scrapped its foreign transaction fees you may not wish to use your main bank account while abroad in case your card gets cloned and you fall victim to fraud. In our article, 'The best ways to take money abroad' we share a number of the ways in which you can take money away with you including pre-paid travel cards, app-only banks and credit cards. If you would prefer to spend abroad on a credit card, our article, 'Compare the best travel credit cards' provides more information.
For additional money-saving tips, read our article, 'Best websites to cut the cost of your holiday'.
