Nationwide Again!

[Jacqui Too]

Can someone help clarify if NW flexaccount cash withdrawals from ATMs in France are at the commercial rate or tourist rate?

I have just opened an account with them after reading on here many times that they are the best way of getting cash on a daily basis, and that not only do they not make any charges but also use the commercial rate.

My confusion came when I tried to find out what rate they were giving for today ( I already get a daily exchange rate update from HiFX), I went on the NW web site and tried to buy some euros and was given a rate of 1.39??, I then went to Natwest and did the same thing, again the rate was 1.39?? + charges, todays HiFX rate is 1.4612

So my quandry is do NW only give the commercial rate when you use the ATM in France?

Can anyone help

Chipie

[Martin963]

well whenever I've used ATMs with a Nationwide Flexaccount I get the rate pretty much as quoted on that evening's Radio 4 six o'clock news - ie the "central" rate.

I think it's extremely fair and I make withdrawals every couple of weeks which I then use to top up our French bank account.

Wouldn't dream of using any other card for withdrawing cash.

[Grecian]

I have made enquiries about opening a Nationwide flexaccount, before leaving the UK. I asked the lady on the telephone the exact same question, which she didn't know the answer to. Having gone away and spoken to her supervisor I was informed that you will get the commerical rate on any withdrawals. We can only assume that her supervisor knew what she was talking about.

Saying that it has been three weeks since I made my online application, and to date I have only received my log-on details!

 

[Bob T]

I don't think there is any such thing as a "tourist rate" anymore. All the banks change at a rate that they want, but some are constantly better than others. With the NW card you can only withdraw £300 or so anyway so if the rate is 2 cents below commercial you are only losing 6 euros. If you are intending to move more money than that then you should be using HIFX anyway.

[audi]

I have always had a good  commercial exchange rate when using a ATM abroad.

[andyh4]

There is a difference in the exchange rate for purcahsing Euros - which is hwat you got from the website - and the exchage rate they use for credit/debit card transactions.

[cooperlola]

I always get at least commercial rate but often closer to bank rate from the Nationwide.  Whatever, it is regularly 5 or 6 points better than the mean old Alliance and Leicester!

[chris pp]

What you get with Nationwide is the "spot" or interbank rate, simple as that and no charges which is as good as it gets.

Chris

[AnOther]

I used my NW card in France just a few days ago and got a rate of 1.46 something which was almost exactly what HiFX were quoting at the same time, and no charges of course [:D]

[Jacqui Too]

[quote user="ErnieY"]I used my NW card in France just a few days ago and got a rate of 1.46 something which was almost exactly what HiFX were quoting at the same time, and no charges of course [:D][/quote]

Great news Ernie

We shall be in France next week and will try it out!

Yesterday I had a quote from HiFX for sending £2500.00 and £5000.00, the rate for £2,500 was 1.42 and for £5,000 was 1.44, their advertised rate was 1.4602 so you need to send quite alot more money to get their best rate!

We need to get €?k in our bank to pay for new fosse septic in september and just want to get it there at the best rates, as Tesco's say "every penny helps"

Chipie

[allanb]

[quote user="chris pp"]What you get with Nationwide is the "spot" or interbank rate, simple as that and no charges which is as good as it gets.[/quote]

I think somebody's kidding somebody here.  Nobody gets the interbank rate without commission, except a bank or large corporate FX dealer trading a large amount of money.

This is how Moneycorp explains it:

INTERBANK RATES

The FX rates large international banks quote other large international banks. The difference between the buy rate and the sell rate, the spread can be around 0.07%. Normally the public and other businesses do not have access to these rates.

And this is what HIFX says on its own website about its own rates:

All rates shown are based on today's Interbank rates. This is the rate at which banks and brokers buy and sell money to each other. Private individuals and small to medium sized businesses cannot access these rates. They are therefore provided for indicative purposes only.

And the spot rate is not the same thing as the interbank rate.  There is no such thing as "the" spot rate: a spot rate is any rate quoted for a deal for settlement on the second following business day; in effect, it's a forward rate for a 2-day period.

I believe the jargon is being used to confuse people.  If you think you're getting a few hundred or even a few thousand euros for the same rate as a professional bank dealer trading several million, either you're being fooled about the rate, or you've overlooked a commission that you're paying somewhere.

[cooperlola]

What the different rates are known as is as you say, confusing.  However, looking at this from a totally practical point of view : on 15th May I got 1.42556 from A & L and 1.461 from the Nationwide.  Now that's quite a difference when large sums are involved.  However, this is for ATM transactions. BIC transfers of large sums are more expensive but still competitive, even when compared to currency dealers, although of course the advantage with the latter is that you agree the rate in advance.

Nationwide of course have no shareholders to pay!  And no, I have not overlooked any commissions or anything else.  There are no bank charges whatsoever unless I overdraw.  This even includes them sending all my statements etc to France.

[chris pp]

If you go into your French bank with your Nationwide card you can "draw" as much as your Nationwide account has in it. They make this transaction simply as if it was a hole in the wall transaction, except that they get an authorisation number if it is a large amount, I do it quite frequently, no charges, no buy / sell. The transaction is always calculated at exactly the middle price that is quoted in the financial press etc. This I have been doing for the last 12 years.

Chris

[chessfou]

[quote]I think somebody's kidding somebody here.  Nobody gets the interbank

rate without commission, except a bank or large corporate FX dealer

trading a large amount of money.[allanb][/quote]

No, it's genuine enough. It should be the bid price (of the GBP-EUR spread) but I can't recall whether it is calculated "live" (as you withdraw) or "fixed" (for the day).

I was cynical about it myself but here are my last five cash withdrawals v. the high & low each day (my data source - Sharescope only gives currencies to 2 dec.):

date   high   low  NWide rate

30.03 1.47 1.47  1.471

05.04 1.47 1.47  1.476

13.04 1.47 1.47  1.466

19.04 1.47 1.47  1.476

25.04 1.47 1.47  1.468

And a few transactions from my NWide CC (no idea why 4 dec. rather than the 3 for the Flex a/c DC):

17.04 1.48 1.48  1.4755

18.04 1.48 1.48  1.4759

23.04 1.47 1.47  1.4681

26.04 1.46 1.46  1.4637

26.04 1.46 1.46  1.4627

So much, much better than HiFx, Moneycorp or the other banks. And those last two CC transactions show that the rate varies during the day  (suggesting that it is a real-time transaction).

[allanb]

[quote user="chris pp"]The transaction is always calculated at exactly the middle price that is quoted in the financial press etc. [/quote]I'm trying to keep an open mind.  Can you tell us exactly which rate that is and where it is quoted?

The point is that if you're right, the bank is doing FX transactions free of charge, and that's about as believable as Father Christmas.

(Edited to add PS):   In fact if they are giving you the "middle" rate, they would be guaranteed to lose money on the business, because they are paying at least the margin on the interbank rate when they buy the euros.

Am I being unfair?  I have nothing against Nationwide; it's just that it would be un-bank-like generosity.

[AnOther]

Father Chrismas or not here's a fact:

Saturday May 12th withdrew €400 from ATM - NW statement shows £273.05 - Exchange rate = 1.4649

HiFX for May 12th was in the range 1.468/1.469, a rate I surely would not have got for €400 !

QED !

[suein56]

Ooohhh, I so wish I had opened a Nationwide account before moving here.

Sue[:(]

[AnOther]

Perhaps it should be made a "Sticky"....[I]

 

[cooperlola]

They are not a bank, allanb, they are a Building Society.  However, as I said, when I've transferred large sums of money via the SWIFT system, then the rate is certainly closer to those quoted by currency dealers and a £20 fee is charged.  But anything using a debit card, credit card, or as Chrispp says - a direct withdrawal from a bank - and you get the good rates.

One of the reasons, I suspect, that the sensible, loyal members who stuck with them through all the de-mutualisation con-tricks in the past, consistently vote to keep it as a building society. 

[AnOther]

When I finally move over I'll perhaps consider setting up my own little money exchange for those that have missed the Nationwide boat....[:D]

I wonder if it might be possible for someone in UK to open an A/C and then add someone else who is non resident on to it. I don't think they ask too many questions about second card holders ?

Needless to say it would have to be someone whom you trusted implicitly !

[allanb]

Well, I'll have to withdraw my comments and apologize to Nationwide.  I can only conclude that building societies must just be nicer people than banks.

On the other hand, if they had shareholders and I was one of them, I might complain that they were giving my money away to the customers ...

[cooperlola]

[quote user="allanb"]

On the other hand, if they had shareholders and I was one of them, I might complain that they were giving my money away to the customers ...
[/quote][:D]  Happily we are one and the same thing.

[Chancer]

[quote user="chris pp"]

If you go into your French bank with your Nationwide card you can "draw" as much as your Nationwide account has in it. They make this transaction simply as if it was a hole in the wall transaction, except that they get an authorisation number if it is a large amount, I do it quite frequently, no charges, no buy / sell. The transaction is always calculated at exactly the middle price that is quoted in the financial press etc. This I have been doing for the last 12 years.

Chris

[/quote]

 

Chris

I actually found that when I used them for a Swift transfer I got a lower rate and had to pay the £20 charge! Now I draw money from my Credit Lyonnaise ATM and then pay it in over the counter which still seems bizarre to me.

Very soon I will have to pay several thousand euros to an enduiser so am keen to find out how you draw (larger amounts of) money from your card "in the bank" if I have understood you correctly. This would save me having to use the ATM method many many times.

I should explain that I want the money in my account so that I can pay by cheque.

As

[cooperlola]

Sorry, I know I'm not Chris!  Just go into your branch with your Debit Card and ask to withdraw the money.  They will check to ensure that you have sufficient funds for a large amount and there may be a branch cash limit, so have a chat with somebody in your local bank first.

[hoverfrog]

I've just had my bank statement from NW, and the leaflet enclosed said that visa debit cards on a flexaccount would no monger be 'free' to use abroad. Credit cards still are though, AFAIK.