Bank withdrawal fees
Your bank may charge a percentage fee, a fixed fee or both for overseas cash withdrawals.
Travel banking guide
Cash Withdrawals Abroad
Taking cash out abroad can be useful, but it is one of the areas where fees and limits can be easy to miss.
Last updated: 2 September 2026
At a glance
7 min read · 4 key checks covered
Jump straight to the practical checks, or read the full guide below for the detail behind each one.
See the key checksQuick answer
Check three things before you rely on cash abroad: your bank's fee for overseas withdrawals (commonly 2.75%-2.99% on standard accounts, though many digital-first accounts include a monthly fee-free allowance, often around £200-£250, before a fee applies), any separate charge the ATM operator adds on screen, and your daily withdrawal limit.
Key checks
Start with the practical details that can change the real cost or convenience of travelling with a UK card.
ATM operator fees
The ATM provider may charge its own fee even if your UK bank does not.
Daily and monthly limits
Cash access can be restricted by your bank, the ATM network and the account plan.
Credit cards cost more
Cash withdrawn on a credit card usually carries its own fee and starts accruing interest immediately.
How overseas ATM withdrawals work
When you withdraw cash abroad, your UK bank converts the withdrawal into sterling and may apply a cash withdrawal fee or foreign transaction fee.
The ATM operator can also apply its own fee. This is separate from your bank's charge and is usually shown on screen before you confirm.
On a standard account charging a 2.75% fee, a £200 withdrawal costs around £5.50 in bank charges alone, before any separate ATM operator fee is added on top. Over a week's holiday, several withdrawals like this can add up to more than the exchange rate itself.
What to check
- Check your bank's overseas ATM fee before travelling.
- Read the ATM screen carefully for operator fees.
- Compare the bank's fee against any fee-free allowance the account already includes.
- Keep receipts until the transaction appears in your account.
Daily limits and monthly allowances
Many accounts limit how much cash you can withdraw in a day. Travel-friendly accounts may also set a monthly fee-free overseas withdrawal allowance.
After an allowance is used, extra withdrawals may trigger a percentage fee or fixed charge. Paid plans may have higher limits, but the account fee should be weighed against how often you travel.
Digital-first accounts often build in a monthly fee-free withdrawal allowance - commonly somewhere in the £200-£250 range - before a percentage fee, typically 2%-3%, applies to anything withdrawn beyond it, and some paid tiers raise that allowance further. Traditional current accounts are more likely to charge a fee from the first withdrawal, though some packaged or premium accounts build in an overseas allowance as a account perk.
What to check
- Check daily withdrawal limits in the app or account terms.
- Check monthly fee-free allowances and reset dates.
- Check whether paid tiers change the limit or only reduce fees.
- Weigh a paid tier's higher allowance against its monthly cost, based on how often you actually travel.
Using a credit card for cash abroad
Withdrawing cash abroad on a credit card is usually more expensive than using a debit card. Most credit card providers apply a separate cash advance fee, commonly around 2.5% with a minimum charge of a few pounds, in addition to any foreign transaction fee.
Interest on a credit card cash withdrawal typically starts accruing from the day of the transaction, even if the balance is cleared in full at the end of the month - there is usually no interest-free period, unlike standard purchases. The interest rate charged on cash withdrawals is also often higher than the rate charged on purchases.
A small number of dedicated travel credit cards are designed to allow fee-free, interest-free cash withdrawals abroad if the balance is repaid in full each month, but this depends entirely on the specific card's terms rather than being the norm.
What to check
- Check whether your credit card charges a separate cash advance fee before withdrawing.
- Assume interest applies from the day of withdrawal unless the card's terms say otherwise.
- Compare the cash advance APR against the purchase APR - they are often different.
Choosing pounds or local currency at the ATM
Many overseas ATMs ask whether you want the withdrawal converted to sterling on screen, or dispensed in local currency at your card provider's own rate. This choice is a form of dynamic currency conversion (DCC), the same mechanism that can appear at card payment terminals.
Choosing to be charged in sterling means the ATM operator sets its own exchange rate, which is usually less favourable than the rate your card provider would apply. Which? has documented cases of providers charging significantly more for choosing pounds over the local currency - in one example, up to 13% more.
Declining the sterling option and choosing the local currency instead generally means your own card provider handles the conversion, which is usually the cheaper route.
What to check
- Always choose to be charged in the local currency, not pounds, when the ATM asks.
- Read the screen carefully - the more expensive option can be worded to sound like the default or 'safer' choice.
- Check your bank statement afterwards to see which rate was actually applied.
Practical cash checks before travelling
Cash can still matter for tips, taxis, markets, local transport and smaller businesses. It can also be useful if card terminals are unavailable.
Even so, carrying too much cash can create security risk. A practical approach is to compare costs, take what you need and keep backup payment options available.
What to check
- Check whether your destination is card-friendly.
- Carry more than one payment method.
- Freeze or report a lost card quickly if it goes missing.
Check before you travel
Fees, limits, exchange-rate rules and account terms can change. This guide is general information, not regulated financial advice. Check your bank's latest terms before travelling or relying on a card overseas.
FAQs
Common questions
Can an overseas ATM charge me even if my bank does not?
Yes. Some ATM operators charge their own fee, which is separate from any fee charged by your UK bank.
Do cash withdrawal limits apply abroad?
Usually yes. Your bank may apply daily limits, monthly allowances or fair-use rules, and the ATM network may have its own limits.
Is withdrawing cash abroad the same as card spending?
No. Banks often treat cash withdrawals differently from card purchases, so check both sets of fees.
Is it cheaper to withdraw cash abroad on a debit card or a credit card?
Usually a debit card. Credit card cash withdrawals typically carry their own cash advance fee and start accruing interest immediately, with no interest-free period.
Should I choose pounds or local currency when an overseas ATM asks?
Local currency is usually cheaper. Choosing to be charged in pounds lets the ATM operator set its own exchange rate, which can be considerably worse than your card provider's rate.
Continue researching
Related travel guides
Overseas card fees explainedCheck how card purchases abroad can be charged.Read guideTravel card controlsSee which app controls can help if a card is lost or blocked.Read guideDigital banks for travelCompare app-based accounts for overseas spending and cash use.Read guideHigh street banks for travelCompare traditional accounts and packaged travel features.Read guide
Compare travel banking options carefully
Overseas card fees, exchange rates and withdrawal limits vary widely between providers. Compare the options against how you actually travel.