Credit card cash rates rise to 25.4%
Withdrawing cash on credit cards has always been costly, but firms are ramping up their fees.
The average interest rate charged on cash withdrawals is now at 25.4 per cent - a rise of 0.4 per cent in the last year.
Along with the higher interest rate, credit card providers are also charging an average of £2.85 to withdraw cash - which is also subject to interest if the bill is not cleared at the end of the month, according to data from MoneyExpert.com.
Egg, Citibank, easyJet, AA, Shell, Ultima and bmibaby have the highest cash withdrawal charges of £5, while 184 cards charge £3.
The Co-op and First Trust Bank are the only providers to offer a card without a withdrawal charge.
Credit card customers can also see interest charged on withdrawals from the moment the cash is in their hands - unlike purchases.
Sean Gardner, director of MoneyExpert, said: "Credit card cash is a rip-off.
"Card holders need to remember that if they visit an ATM they're going to pay through the nose for it. Rates continue to creep up making card cash one of the most expensive forms of borrowing out there."
Credit card interest rates and charges have been rising in the last year - despite the Bank of England cutting its interest rates to a record low of 0.5 per cent.
Average annual interest rates on credit cards in April were 1.1 per cent higher than two years ago - at 17.6 per cent for purchases.
The credit card industry defends the increase in charges claiming some cards' rates are rising because in the current economic situation the risks for credit companies on offering open lines of credit were increasing.
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