Article updated: In a move that is likely to upset a significant number of customers, Nationwide Building Society is abandoning its policy of not charging for overseas debit card transactions.

With effect from 1st November 2010 customers will be charged a 2% fee.  Note that if you draw cash from an ATM there is an additional £1 fee, as well as the 2%.

However, as we demonstrate below, Nationwide still remain the best of the bunch, for this type of transaction.

The following table shows what the main banks charge for using your debit card abroad (cash withdrawals and usage in shops).

Please note that these rates apply to debit cards and not credit cards.

See this link to the Nationwide website, which explains the changes.  Nationwide Media Centre

We are aware of a Santander 'Zero Account', which does provide free debit card transactions abroad, however, the account is not available to everyone.  You need to have a mortgage account, or certain types of investment products.  There are also other terms and conditions, so it would not be appropriate to include it in our table above.

Clearly, this is just one aspect of your overall relationship with your bank.  Whilst nobody likes having free services taken away, it is important to think about the overall package of services when considering who you should bank with.