Withdrawing money from abroad can be a hugely expensive affair, with British holiday makers spending £391 million on withdrawal fees in the past year alone according to research from Sainsbury's Travel Money.
Typical withdrawal fees are 2.75% for both debit and credit cards. Sainsbury's Finance estimates that holidaymakers spent £41 each last year as a result of such charges, and this is without considering fees levied by the ATM providers, as not all cash machines are free to use in the first place.
David Barrett, head of Sainsbury's Travel Money, said: 'As a nation, we spend a huge amount every year on our holidays. A person withdrawing the average amount on their debit and credit cards whilst on holiday will spend £41 per year purely to access their cash - and that's before looking at other incurred costs.'
'Prepaid cards can be an excellent way to make your money go that little bit further, providing you choose carefully. It's important to shop around and know what you're getting, as many people get stung by charges they weren't anticipating. As a result those who withdraw smaller sums from ATMs on a frequent basis could be paying well over the odds for their holiday cash.'