Nationwide hikes the cost of using debit cards overseas to 2.75pc

NATIONWIDE is hiking the cost of spending abroad — forcing customers to pay 2.75 pc interest on card purchases and cash withdrawals, up from 2 pc.

It means that from October 8, a £150 debit card payment abroad will cost £154.13, up from £153. There is an extra £1 fee for using a cash machine, so taking out £150 will cost £155.13.

The fee increase comes as new banks entice customers with fee-free spending abroad. Nationwide blames the rising cost of providing current accounts.

A spokesman says: ‘Nationwide regularly reviews its fees and charges and from time to time we have to make changes to ensure we can continue to run a fair and sustainable business.’

FlexOne, FlexStudent and FlexGraduate customers will not be affected.

FlexPlus customers will also be able to still withdraw cash abroad for free, but will pay 2.75 pc on card purchases.

Nationwide, earlier this year, faced a backlash over scaling back telephone banking services and later scrapping a vital annual paper statement for savers.