A list of UK banks with no foreign transaction fees

Key takeaways:

• Many UK banks charge a non-sterling transaction fee of up to 3% every time you use your card to make a purchase in another country
• Starling Bank, Monzo, and first direct are some of the top UK banks with no foreign transaction fees
• There are alternative providers in the UK that offer low-fee international spending with additional benefits like no-markup exchange rates

Traveling abroad can be stressful with airport lines, flight delays, and language barriers. But one of the biggest annoyances for British tourists is foreign transaction fees. These fees can spoil your holiday fun and drain your travel budget. Luckily, there are ways to avoid them.

In this guide, we'll show you the UK banks that don't charge foreign transaction fees, and also share some tips.

And if you’re looking for an easy way to manage your holiday money abroad, check out the Wise account from the money services provider Wise. It’s not a bank account but offers some similar features, and your money is safeguarded.

Over 12.8 million people worldwide use Wise to send, spend and convert money in 40+ currencies – for low, transparent fees* and no-markup exchange rates close to what you can see on Google. And of course, no foreign transaction fees.

Learn more about the Wise account ➡️

UK Banks with no foreign transaction fees - Quick comparison

Take a look at the following table for our top three picks of UK banks that don’t charge foreign transaction fees.

Not only are these three of the banks with no foreign transaction fees, but they also regularly top the charts for customer service. In 2025, Which? voted them as the best banks in the UK for customer care, putting first direct ahead of all other major banks, with Starling and Monzo close behind. ¹⁰

Starling Bank

Starling Bank is a simple, hassle-free banking service that has gone down well with UK consumers. It’s a British-owned bank that was founded in 2014 by the COO of Allied Irish Banks.

There are no charges for holding an account with Starling Bank or spending money abroad, and most activities are conducted through the app. It doesn’t charge customers for foreign ATM withdrawals, and there is no fee to hold a standard current account.

Using the Starling Bank app, you can create savings pots, set up new accounts, and access live chat support 24/7. Just watch out for the £20 CHAPS fee, and keep those cards safe, as replacing one abroad could cost you £10.

Monzo

Monzo is an online-only bank. You can sign up through the app—send a photo ID, smile for the camera to pass a comparison check, and add your personal details—before receiving a card for spending in the UK and abroad.

Not only is it one of a few banks with no foreign transaction fees, but the app is packed with features, including high-interest savings accounts, savings pots, bill splitting, and investments (shares, commodities, cryptocurrencies).

It does charge a 3% fee on some foreign withdrawals, but only if they are above £200 per month and outside the EEA.

Monzo’s star is on the rise. In 2024, it surpassed 10 million users in the UK, which means that 1 in 5 UK adults now has a Monzo account.¹¹

first direct

first direct is part of the HSBC group and has been around since 1989, with nearly 2 million UK customers currently on its books.

There are no fees for spending abroad, using ATMs (£500 daily cash withdrawal limit), and no non-sterling transaction fees.

There are small fees for sending non-euro payments, as well as euro payments outside the EEA, but these are waived if you’re transferring to a HSBC account. There are no account fees or foreign transaction fees.

At the time of writing, first direct offers a welcome bonus of £175 for all new customers who switch and complete a short checklist within 45 days:¹²

What are foreign transaction fees

A foreign transaction fee, also known as a “non-sterling transaction fee”, is a charge levied every time you use your card abroad. It’s usually between 2% and 3%, and while that doesn’t sound like much, it all adds up.

When you make a purchase abroad, the bank needs to convert your money to the local currency, and they charge you for it. You’ll pay these fees on everything from the coffee and tea you buy at the airport to larger purchases like car rentals.

As an example, two of the UK’s three biggest banks charge a 2.99%¹³ foreign transaction fee, while the third charges 2.75%.¹⁴ ¹⁵ The average UK holidaymaker spends £660 during a long break and £369 during a short one, equating to an added cost of: ¹⁶

• long break (2.99%) = £19.73
• short break (2.99) = £11.03
• long break (2.75%) = £18.15
• short break (2.75%) = £10.14

If you stick with banks with no foreign transaction fees, it could save you nearly £20 extra, and that’s not all. If you withdraw money from an ATM, you could be hit with an even bigger charge, and if you add a car rental and some accommodation to the mix, those fees could double.

But if you use banks or alternative providers with no foreign transaction fees, it’s money that will stay in your pocket.

How to check if your bank charges foreign transaction fees

Your bank will have sent you a few documents when you signed up. These will outline the foreign transaction fees and other costs.

The easiest solution is to check the help files of your online banking app or give them a call. Most banks also have some form of live chat, and the representatives should be armed with the information that you need.

Benefits of choosing a bank with no non-sterling transaction fees

Avoiding a non-sterling transaction fee will put more money in your pocket.

That’s more money for drinks, food, attractions, and gifts. Travelling on a budget? The money you save by not paying that extra 2-3% will make your holiday cheaper without disrupting your itinerary.

Your budget will be easier to manage, too. We’ve all had those holidays where the budget seems to disappear before you’ve even strapped on your swimsuit and spent your first day by the pool. Keeping those extraneous fees low will help to plug the leak.

You can avoid non-sterling transaction fees by converting your funds to the local currency and sticking with cash payments. But that’s easier said than done.

You’ll first have to navigate the gauntlet of currency conversion to avoid a bad exchange rate, and even when you have your foreign currency, you might not be able to use it.

Many countries are gradually becoming cashless, so paper money isn’t as widely accepted as it once was.¹⁷

Using your card is easier. It’s safer, as you won’t be carrying around bundles of foreign notes. If you join one of the aforementioned services or banks with no foreign transaction fee, it’s also a cheaper way to spend abroad.

Final tips for saving money while spending abroad

Having a bank which doesn’t charge foreign transaction fees is just one of the ways you can save while spending abroad. Here are some other ways to save:

• Check your bank’s ATM withdrawal fees
• Make fewer withdrawals from the ATM
• Use DCC transactions where possible, letting you pay in GBP
• Avoid tourist traps and seek recommendations from locals
• Check to see if your card offers rewards, cash back, and other perks
• Track your spending and stay aware—it’ll help you avoid overspending on luxury purchases

Finally, whether you’re applying for a new card, checking unused features on existing accounts, or seeing what else your existing suppliers have to offer, make sure you always read the small print.

Travelling abroad? Use Wise for low-cost currency conversion and spending

Open a Wise account online and you can order the Wise debit card for a one-time fee of £7. You can use this clever card in 150+ countries worldwide. It automatically converts your pounds to local currency whenever you spend using the mid-market exchange rate, only adding a tiny, transparent conversion fee* – or it’s free if you already have the local currency in your Wise account.

You also get two free ATM withdrawals for up to 200 GBP (or currency equivalent) each month. Wise will not charge you for these withdrawals, but additional charges may occur from independent ATM networks.

Sign up with Wise for free 🚀

Sources used :

Sources last checked on 14-Feb 2025.