NatWest could earn an extra £10 million from increased fees

One of the US's leading banks NatWest, has increased foreign fees recently, and many experts claim that this could result in the bank netting over £10 million in extra revenues from those heading off on their summer holidays with the intention of using their debit cards abroad.

The increase in foreign fees seems to have come at just the right time to target the many UK customers that will be heading off abroad on their holidays, and could mean a very tidy profit for the bank.

The new foreign fees imposed by NatWest will come into force on 1st June this year, and customers using their NatWest cards abroad will be charged 66% more than previously, with a charge of £1.25 each time they use their card abroad.

The exchange rate fee will also be increased to 2.75 percent every time a purchase is made, which makes it even more expensive for consumers to use their own money whilst on holiday abroad.

There will also be an increased ceiling limit on charges for cash withdrawals abroad, which will stand at £5 from the beginning of June. With these fees in place, NatWest cards will become the most expensive ones to use out of the five leading banks for customer travelling abroad, and according to some sources customers of the Royal Bank of Scotland will also have to pay these higher fees.

The director of financial services as uSwitch, Nick White, estimated that the bank would net an extra £10 million or more from this move.

He stated: "This is the latest in a long line of fees that banks are now charging to try and squeeze more money from their loyal customers and follows closely after the RBS group’s decision to charge credit card customers £12 if they move house and do not update address details."

Tom Smith
1st May 2007