The right card saves pounds on your euros

Over four million Brits holidaying in Europe this month will not only find themselves hammered by an ever weakening pound, but also by hefty foreign exchange fees and transaction charges if they don't use the best credit or debit card.

Steve Willey, head of credit cards at moneysupermarket.com, said: "While the strength of the euro is of concern to holidaymakers, using the wrong foreign exchange product can be even more costly.

"A credit card with purchase protection of 90 or more days is the best option for purchases overseas. Not only do the credit cards from the Post Office, Nationwide and Saga offer this, but they also have zero per cent purchase offers of between three and six months and don't levy foreign exchange fees in Europe. This is a far better prospect than their rivals that charge between 2.73 and 3.0 per cent.

"The Nationwide Flex debit card is the best product for overseas cash withdrawals as there are no extra charges. In contrast, a €100 withdrawal with a Lloyds TSB debit card will incur a £2 transaction charge plus a 2.99 per cent foreign exchange fee.

"If you are stuck with an uncompetitive debit or credit card and don't have time to get a new one, the Caxton FX prepaid card is a good option. And if you are worried about overspending, prepaid cards will only allow you to spend what is on the card."