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The UK's most recommended bank, first direct, has launched an online travel money service with next working day home delivery. Customers will get their money commission free at highly competitive exchange rates (See table 1). The normal £3.95 handling fee will be waived until 31 August for existing first direct customers and for anyone else wishing to exchange more than £500¹ .

According to research by first direct, British tourists exchange an average of £550² into currency and travellers cheques each time they travel overseas, but big disparities between the best and worst value providers mean that this exchange could leave customers as much as £17³ out of pocket. Considering the average holiday costs £481, £18⁴ up on last year, a saving like this could in effect mean getting your 2005 holiday at last year's prices.

Each year people in the UK take over 61 million overseas trips⁵. But while holidaymakers take time out to search for the best deal for their holiday, when it comes to changing money, many people could be paying over the odds.

Richard Kimber, first direct’s chief executive said: “first direct has already taken banking to new levels of convenience as the original telephone bank. Now customers can order their travel money online, have it delivered to their home the next day and get a great deal for it.

“But holidaymakers should make sure that their best buy exchange rate doesn’t become a worst buy once any handling and commission charges have been added.”

Customers interested in first direct’s online travel money service can visit www.firstdirect.com.

¹Non first direct customers wishing to exchange less than £500 and all customers using the service from 1 September, will not be charged commission but will pay a handling fee of £3.95.
²Based on first direct’s customers.
³Based on extra currency exchange with NatWest at 10 June 2005 on £550 into United States Dollars.
⁴Figures from CAA, January 2005.
⁵2003 figures from Office for National Statistics, December 2004.

 

ENDS

Notes to editors:

1. Table 1: Shows exchange of £550 into Euros with different currency exchange providers.

Online currency exchange provider	Delivery timing	Handling fee/commission	Exchange rate	Number of Euros for £550 on June 10 2005	Extra currency with first direct in £
first direct online	Next day	None	1.428252	€785.53	-
Natwest	2 days	£3.50 / £10.93	1.4274	€764.47	£14.77
Smile	Next day	£4.80 / £6.82	1.4306	€770.21	£10.74
Lloyds TSB	Next day	£4.50	1.4221	€775.75	£6.85
Halifax	Next day	£5	1.42715	€777.79	£5.42
Nationwide	Next day	£3.50	1.4238	€778.10	£5.21
Post Office (First Rate)	Next day	£5	1.4243	€776.24	£6.51
Barclays	Next day	£0	1.4192	€780.56	£3.48
Egg	n/a	n/a	n/a	n/a	n/a
Cahoot	n/a	n/a	n/a	n/a	n/a
Abbey	n/a	n/a	n/a	n/a	n/a

This table represents the standard offering for customers and alternative prices may be available to some customers.

Table 2: Shows exchange of £550 into US Dollars with different currency exchange providers.

Online currency exchange provider	Delivery timing	Handling fee/commission	Exchange rate	Number of Dollars for £550 on June 10 2005	Extra currency with first direct in £
first direct online	Next day	None	1.755625	$965.59	-
Natwest	2 days	£3.50 / £10.93	1.7463	$935.26	£17.36
Smile	Next day	£4.80 / £6.82	1.7469	$940.50	£14.37
Lloyds TSB	Next day	£4.50	1.7400	$949.17	£9.41
Halifax	Next day	£5	1.74355	$950.23	£8.79
Post Office (First Rate)	Next day	£5	1.7468	$952.00	£7.77
Barclays	Next day	£0	1.7347	$954.08	£6.59
Nationwide	Next day	£3.50	1.750900	$956.86	£5
Egg	n/a	n/a	n/a	n/a	n/a
Cahoot	n/a	n/a	n/a	n/a	n/a
Abbey	n/a	n/a	n/a	n/a	n/a

This table represents the standard offering for customers and alternative prices may be available to some customers.

2. Non first direct customers wishing to exchange less than £500 and all customers using the service from 1 September will not be charged commission and will be subject to a handling fee of £3.95.

3. Top five currencies amongst first direct customers

1. Euros
2. US dollars
3. Sterling Travellers Cheques
4. Australian Dollars
5. Canadian Dollars

4. The first direct online travel money service:

• next working day home delivery for orders made online before 3pm the previous working day;
• £100 minimum and £2,000 maximum order size;
• no handling fee until 31 August 2005 for existing first direct customers - handling fee of £3.95 thereafter;
• no handling fee until 31 August 2005 for non first direct customers wishing to exchange £500 or more. Otherwise handling fee of £3.95 will apply for all orders from 1 September 2005;
• competitive currency exchange rates; and
• no hidden fees or charges.

5. first direct
first direct has been the UK's most recommended bank, and has had the most satisfied customers, for the last 13 years consecutively (which is when the research began), according to research from MORI and Research International.

The reasons first direct's new customers gave for joining in 2004 were:

• 37 per cent following a personal recommendation;
• 37 per cent due to dissatisfaction with their previous bank;
• 36 per cent to benefit from 24 hour banking;
• 32 per cent to benefit from internet banking; and
• 17 per cent to benefit from text message banking.

(There are multiple reasons per customer)

6. The HSBC Group
first direct is a division of HSBC Bank plc, and a member of the HSBC Group. Serving over 110 million customers worldwide, the HSBC Group has over 9,800 offices in 77 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. With assets of US$1,277 billion at 31 December 2004, HSBC is one of the world's largest banking and financial services organisations. HSBC is marketed worldwide as 'the world's local bank'.

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