The Co-operative Bank has eliminated foreign transaction fees on debit card spending overseas, scrapping its 2.75% charge across all current accounts. Customers can now use their cards abroad without incurring extra costs.
Industry Context
Most UK banks impose foreign transaction fees of up to 3% when customers use their cards abroad. Some institutions, such as Chase, Monzo, Revolut, Starling, and First Direct, already offer fee-free foreign spending. However, independent ATM operators may still levy their own local fees.
Other banks provide fee-free transactions on select accounts. For example, Santander Edge, Edge Up, or Edge Explorer debit card users are not charged. Lloyds customers with Club, Silver, Gold, Platinum, or Premier accounts also enjoy zero foreign transaction fees worldwide.
Everyday Extra Account Revamp
Alongside the fee removal, the Co-operative Bank has refreshed its Everyday Extra packaged bank account. The monthly fee has been reduced from £18 to £12. The account includes worldwide family travel insurance, UK and European breakdown cover, and mobile phone insurance.
Kat Robinson, Head of Family and Everyday Banking at The Co-operative Bank, said: “Summer can be one of the most expensive times of year for families, whether it’s keeping everyone entertained at home or holidays abroad, and those costs can quickly add up. That’s why we’re removing foreign transaction fees, making it simpler and more affordable for our customers to spend overseas - whether that’s on family holidays, city breaks or everyday purchases while away - helping them keep more of their money while they enjoy their time abroad. Alongside this, we’ve made our Everyday Extra one of the best-value packaged accounts on the market, offering added peace of mind with travel insurance, breakdown cover and extended mobile phone protection for the whole family.”
Expert Commentary
Rachel Springall, Finance Expert at Moneyfacts, said: “Cost of living pressures can make it difficult for consumers to prioritise where to spend their hard-earned cash, so it’s essential to have both fee-free and reasonably priced current account options to choose from. With this in mind, it’s great to see the Everyday Extra Account becoming a more affordable choice as its account fee has been slashed to £12 per month. A raft of packaged account benefits can be a great cost-saver for holidaymakers in the UK or worldwide, plus the peace of mind that cover provides.”
