Holidaymakers looking to cut costs this summer will welcome the return of the Abbey Zero credit card, on sale from tomorrow.
The card, which was originally available last summer, offers fee-free overseas purchases and an introductory rate of 0 per cent on balance transfers for 12 months. This news follows Nationwide's decision last week to charge 0.81 per cent on transactions conducted outside the eurozone.
The Abbey card also offers an introductory rate of 0 per cent on purchases for three months and a no-fee policy for cash advances, so cardholders will not get stung by charges for withdrawing money in an emergency.
"The real strength of the Zero card is the absence of additional fees on foreign transactions," says Andrew Hagger of Moneynet.co.uk. "British holidaymakers heading overseas will be hit hard by the weakness of sterling this year, so the ability to make purchases without the usual 2.75 per cent-plus fee will give a much needed boost to the holiday kitty."
However, there is a sting in the tail, as the card has an annual percentage rate of 18.9 per cent after the introductory period, higher that the market average of 17.8 per cent and far above the current best-buy credit card, the Simplicity Visa from Barclays, which charges 6.8 per cent on purchases.