MrsMac59

Hi All, I recognise the need to have a Spanish bank account to settle utility bills and tax liabilities, however, I was looking into the best way to make use of fx fluctuations and also trying to find out how best (cheapest way) to get access to spending money given that we are not making a permanent move to Spain but simply intending to join you all for the winter months.

I came across the Travelex prepaid euro card which will accept a pre-load of the kind of sum I would expect to spend in a six month time frame, can be loaded online for free, can be used FOC at some ATMs (admitted that some ATMs may charge their own fees for transactions) and whose exchange rate can be monitored for advantageous timing of loading up cash. Reading up on it, this card would seem to allow me to do all that I was looking to do.

Has anyone experience of this or similar cards. If so, what are the pros and cons please.

HeikeundAlan

We use the Caxton fx euro card,
had it for nearly 5 years now.
and yes we keep eye on the exchange rates via internet.
We have neverhad to pay any fee to use the card at any Atm

amideislas

You'll receive lots of opinions here, but in my experience, using UK banks for this sort of thing is just begging to be ripped off for ridiculous fees and pathetic exchange rates. (Ironically, transferring from a European bank to a UK bank is usually far simpler, faster, and costs very little, but that's another topic).

A prepaid card is a good way to go, although if you just set up a free account with any of the FX trading platforms, you'll be able to transfer funds from your UK bank to your FX account (in Sterling), convert it to Euros at near interbank rates, then transfer it to your Spanish account, all online, usually can be done the same day, costing pennies, if anything.

We use Oanda.com, but there are plenty of good, credible full service Fx trading platforms.

Good luck...

Fredbargate

I have a Norwich and Peterborough account and use their debit card which gives excellent rates and no charges.

http://www.nandp.co.uk/current-accou...rrent-account/

All our Gold Classic Current Account holders are entitled to use their debit card for transactions abroad with no charges. Please note an overseas ATM or retailer may add a charge. You would be told about this at the time of transaction.

My information and experience is their should be no charges if you use an ATM displaying the VISA+ sign

MrsMac59

Thanks to all for your informative responses.

I asked the question because we are being inundated with phone calls from money managers who have been contacted by the various estate agents with whom we have viewed houses who are telling us that it's going to cost us a fortune in bank charges to have an account in Spain unless we use their services for our financial transactions. Surely not, or is it simply that I have yet to experience the Spanish banking system?

amideislas

Your estate agents are telling porkies.

The Spanish (and European) banking system is in general, far more sophisticated and less expensive than the UK banking system - at least when it comes to retail banking and international transactions.

A typical current account with say, La Caixa (Spain's most popular) takes 15 minutes to set up, and might cost €3 per month, unless you have all your bills moving through it, and then they'll usually give it to you for free. Hardly expensive. Online banking is in 7 languages and is remarkably simple and sophisticated, and you can transact nearly any bank business through your online banking, including funds transfers to virtually any country in any currency, and they don't impose shockingly horrible exchange rates like UK banks do (if the UK bank even facilitates transfers abroad in different currencies through online banking).

But to get funds from the UK to Spain, don't use your UK bank! THAT will cost a fortune.

missbusybusy

we have a card but as its a pre paid their are limitations where you can use it even though they state you can, but generally they are great to know exactly what you are spending

MikeJ

Depends on your bank. Lloyds charges a fixed £10 fee for up to £10,000 transfer. Interest rate is competitive too. We have a Barclays International account in Spain and regularly top it up when the exchange rates are favourable. I also have FairFX pre- authorised debit card denominated in Euros which again I load before travelling when the rates look good. It is also very useful if you travel around the Eurozone.

MrsMac59

Thanks for this recommendation. I investigated three or four euro cards and settled on the Caxton card. I've had it for a few months now and find it so easy to load and to use.

Lately my husband has been making noises about getting his own card so I did a bit of research again to determine whether or not there was now a better card available but we've chosen a Caxton card for him too.

bobd22

If you have a Spanish bank account worth looking at Currency Fair to transfer money £3 per transfer and good rates. Used them for a while now and not had any problems. As I am non resident I drip feed in when rates are better and I can afford, keep my Euros in then make one transfer when I am going over or when money needed in Spanish account.

Ben1986

Have you considered multi-currency offshore accounts?

With Lloyd's Offshore, you can use a currency broker (either theirs' or a third party) to exchange your funds from the sterling account into the euro account to get the best rate.

It is free to use your euro debit card at any POS but not always at ATMs. Furthermore, they do not charge for overseas wire transfers.

As i get paid in $, use £ at home and but spend most of my time in Europe using €, the offshore multi-currency account is starting to seem like best option, but for the occasional visit to Europe, the pre-paid card seems to be a better option.

cliff b

Would Santander be a good bank to use in the UK if you are planning a move to Spain. That's what I have done, got a good relationship with them when I first thought a move to Spain may be on the cards i the future.

I haven't checked but I would have thought opening a new Spanish account or transferring your Uk account would be easy????

I know I can draw money from their ATM's free in Spain with my UK account.

lutonlad

I agree. Have used CF for a while now and do exactly the same.
Better than pre-paids in my opinion.

MrsMac59

I thought about Santander too when I first began to look into this issue as I have a business banking account with them here in the UK, but I've read in other posts that Santander in the UK and Santander in Spain have two separate identities and so we would have the same transaction and fx charges if we sent money to Spain from the UK as we have had using HBOS. I'm happy to be corrected by anyone with better knowledge than I or if I have misunderstood the information being given.

Caxton on the other hand seems to charge a fixed (very competitive) percentage above market rate at the point of transfer onto the card and thereafter your euros are free to withdraw at the ATM or to spend in the shop using the card as a debit card. Only drawback is that charges would apply if you then needed to spend the money you've loaded onto the card in a country that doesn't take euros.

jonboy

If you can get the Halifax Clarity card you may find it to be an economical way to spend your pounds in Spain. Look it up on moneysavingsexpert online. As you are uk based then you can pay off balances via the internet. There appears to be very few charges on this card, yet a good rate of exchange.