The Co-operative Bank has scrapped its 2.75% foreign transaction fee on debit cards used abroad, providing a financial boost for British holidaymakers. The change, effective from June 29, applies across all of the bank’s current accounts.
Summer Savings for Families
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."
Everyday Extra Account Fee Reduced
Alongside the fee removal, the bank has reduced the monthly fee on its Everyday Extra account from £18 to £12. The account includes a comprehensive package worth over £640, according to the lender. Benefits include worldwide family travel insurance (covering winter sports), breakdown cover in the UK and mainland Europe, mobile phone insurance for all household members, and insurance for passengers in another person’s car.
Robinson added that the account is now one of the best-value packaged accounts on the market.
Expert Views on Packaged Accounts
Rachel Springall, Finance Expert at Moneyfacts, commented: "Cost of living pressure 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."
Moneyfacts noted that while packaged accounts offering extras like insurance can be cost-effective, they are best for customers who fully utilise the features. Some consumers may find it cheaper to arrange policies separately, and those with existing insurance could end up paying for duplicate cover.
Ella Mower from Moneyfacts advised: "That’s why it’s crucial to consider all aspects of an account carefully to find one best suited to your needs – including whether any perks outweigh the costs."
