'Huge differences' exist in banks' overseas fees

Exorbitant overseas bank fees mean that the cost of a holiday could end up being significantly higher for tourists belonging to certain financial institutions, consumer watchdog Which? has warned.

Researchers visited Calais to find out the different rates banks charged for the same €5.95 debit card purchases and a €20 ATM withdrawal, and found a huge difference between the charges of various institutions.

By far the best account to hold for overseas charges was Norwich and Peterborough's (N&P) Gold Light current account, which does not charge users at all for splashing out on their card abroad.

Halifax customers appeared to lose out, however, being charged some 33 per cent more than those with N&P for a supermarket purchase.

The bank also charged 29 per cent more than both HSBC and Barclays - showing it did not measure up even to its high street rivals when it comes to spending abroad.

Richard Lloyd, executive director at Which?, commented: "We want to see overseas bank charges made clear to consumers when they sign up for their current account or credit card. Consumers must be able to easily see whether they are getting a good deal or not."