Saga launches 0% foreign currency fees on credit card worldwide

Monday 5 April 2010

Saga launches 0% foreign currency fees on credit card worldwide

  • No foreign currency fees are applied to transactions across the globe
  • Over 50s spend around £4bn* a year on credit cards overseas

From 5th April 2010, all customers using the Saga Platinum credit card will benefit from 0% foreign currency fees when using their card across the globe, announces Saga Personal Finance. Saga already offered 0% foreign currency fees within Visa Europe, and this has now been extended to cover all countries, meaning customers can enjoy the benefit of no foreign currency fees when spending across the globe.

The over 50s spent around £4bn* with their credit cards abroad last year. With the typical overseas transaction fee at 2.75%** that means that over £100m could now be saved by the over 50s by switching to the Saga Platinum credit card.

This is the latest enhancement to the best buy Saga Platinum credit card, which bucked the industry trend for increasing standard APR rates and actually reduced its rate from Typical 15.9% APR (variable) on purchases to Typical 11.9% APR (variable) on purchases in April 2009. The card also offers customers 0% on purchases made in the first 9 months***, which is better than Santander and the Post Office, and 0% on balance transfers for 9 months***as well.

Using a 0% foreign currency fee on transactions can make a huge difference to people’s wallets. For example, a spend of US$2000 would cost nothing in terms of foreign exchange fees using a Saga Platinum credit card, but would set you back US$55 if you used a Barclaycard. That would pay for trips to the Statue of Liberty and the Empire State Building as well as four hotdogs!

The Saga Platinum credit card offers:

- 0% foreign currency fees on transactions across the globe

- 0% on purchases made in the first 9 months***, Typical 11.9% APR (variable) thereafter (reduced from Typical 15.9% APR (variable) in April 2009)

- 0% on Balance Transfers for the first 9 months***

- Interest free cash withdrawals – up to 55 days †

- Manage your account online

- Internet fraud guarantee

- A positive hierarchy of payments – Saga allows customers to pay off the most expensive debt first††

Andrew Goodsell, Executive Chairman, Saga Group, commented: “For too long credit card companies have been fleecing their customers who travel overseas. We want our customers to enjoy themselves on holiday, without having to worry about any extra costs that they might incur when using their credit card abroad. Packing a zero charging credit card should be a must for anyone holidaying in 2010.”

For further information about the Saga Platinum credit card, please call 0800 096 4082


Editorial Notes:

*From a recent review of 15 leading credit card companies. This was calculated using: (Internal data) £144 million spent on cards in 2009. 20% of this was abroad = £28.8m Spend per individual = £28.8m / 116,000 cardholders = £248.28. (Opinium data from July 09) 77% of over 50s have a credit card, 77% of 21,290,000 = 16,393,300, 16,393,300 x £248.28 = £4,070,128,524 .

** Based on Saga data from a monthly competitors analysis report. This was last sourced 23rd March 2010.

*** Introductory Rate is charged for the first nine months on purchases and Balance Transfers from the date the Account is opened. At the end of this period the Introductory Rate reverts to the Standard Interest Rate applicable to the product at the time. A Balance Transfer Fee of 3% applies.

† If you use your card to withdraw cash, you will benefit from an interest free period of up to 55 days if the balance is settled in full before the due date. After that, interest will be charged at 23.9% APR from the date of the transaction. There is a 2% Cash Advance Fee (minimum £2) for each cash withdrawal, whether it is made abroad or in the UK.

†† Payments received will be deducted from the outstanding balance on the account in the following order:

• interest;

• fees from previous statements;

• Cash Advances (including cash from a Cash Machine) from previous statements; and

• Purchases from previous statements.

The remainder (if any) will be applied to transactions on the current Statement in the following order:

• fees;

• Cash Advances;

• purchases and Balance Transfers; and,

• Any other promotional offers.

Saga Personal Finance Limited is registered in England and Wales (Company No. 3023493) and is a wholly owned subsidiary of Saga Group Limited. Registered Office: Enbrook Park, Folkestone, Kent, CT20 3SE.

The Saga Platinum credit card is issued by Allied Irish Banks, p.l.c. Registered office: Bankcentre, Ballsbridge, Dublin 4, Republic of Ireland. Registered in the Republic of Ireland: Registered No. 24173.

The information contained in our press releases is intended solely for journalists and should not be used by consumers to make financial decisions.

For more information please contact the Saga Press Office on 01303 771529

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