The Nationwide bank has announced that it will introduce a 2% charge on debit card transactions and a 1 GBP charge for cash withdrawals overseas including Turkey from 1 November 2010.
The move follows a so called banking war in which rival banks are trying to attract customers with new incentives such as free perks, lower bank overdraft rates and better services.
The Nationwide Building Society has announced that they will reduce overdraft charges and offer free travel insurance.
However, they plan to end the free use of their cards in Europe, Turkey and Israel from 1 November 2010.
The Nationwide debit card had been a real money saver for travellers as its debit card did not charge a commission fee unlike other cards.
The society says on its website:
“The Society’s new commission charge of 2% and £1 cash withdrawal fee are lower than any of those charged by other standard or free current accounts in the market. Unlike several other card providers, Nationwide does not also charge a fee when a customer makes a purchase abroad. Up until 1 November 2010, many customers will benefit from both free travel insurance and commission-free card use abroad.”
When compared to a Barclaycard, one of the nearest competitors, a Nationwide flex account debit card user will save 15.52 GBP when spending 1,000 GBP abroad (4 x 50 GBP card purchased and 8 x 100 GBP cash withdrawals).