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First Direct scraps FX fees on its debit cards

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Whilst it hasn’t informed its customers yet, First Direct has dropped all foreign exchange and ATM fees on its debit cards.

The change went live on 28th June.

The bank has removed:

  • the 2.75% foreign exchange fee added to all non-Sterling purchases and cash withdrawals
  • the 2% fee (min £1.75, max £5) added to all non-Sterling ATM withdrawals, which was on top of the 2.75 FX fee

The change only applies to debit card spending. If you use a First Direct credit card outside the UK, the fees above will still apply.

If you are interested in opening a First Direct current account to get its debit card, there is currently a £175 incentive to move your existing account across.

This is HSBC’s second recent attempt to cut FX fees for customers.

Over at HSBC’s standard current accounts, the bank has launched an interesting ‘Global Money’ product. You need to open this via the HSBC app, creating a 2nd virtual account, and then move money into it from your standard current account.

Transactions made using your ‘Global Money’ virtual debit card incur no FX fees (a plastic multi-currency card is also available). ‘Global Money’ also allows you to make FX transfers without fees, although I suspect the underlying rate will not be attractive.

Want to earn more points from credit cards? – September 2023 update

If you are looking to apply for a new credit card, here are our top recommendations based on the current sign-up bonuses.

In February 2022, Barclaycard launched two exciting new Barclaycard Avios Mastercard cards with a bonus of up to 25,000 Avios. You can apply here.

You qualify for the bonus on these cards even if you have a British Airways American Express card:

Barclaycard Avios Plus card

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Barclaycard Avios Mastercard

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You can see our full directory of all UK cards which earn airline or hotel points here. Here are the best of the other deals currently available.

SPECIAL OFFER: The sign-up bonus on the Virgin Atlantic Reward+ Mastercard is doubled to 30,000 Virgin Points if you apply by 2nd October. You receive 15,000 Virgin Points with your first purchase and a further 15,000 points if you spend £3,000 within 90 days. Apply here.

British Airways American Express Premium Plus

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American Express Preferred Rewards Gold

Your best beginner’s card – 20,000 points, FREE for a year & four airport lounge passes Read our full review

The Platinum Card from American Express

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Virgin Atlantic Reward+ Mastercard

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Earning miles and points from small business cards

If you are a sole trader or run a small company, you may also want to check out these offers:

American Express Business Platinum

40,000 points bonus and an annual £200 Amex Travel credit Read our full review

American Express Business Gold

20,000 points sign-up bonus and free for a year Read our full review

Capital On Tap Business Rewards Visa

Get a 10,000 points bonus plus an extra 500 points for our readers Read our full review

For a non-American Express option, we also recommend the Barclaycard Select Cashback card for sole traders and small businesses. It is FREE and you receive 1% cashback on your spending.

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