For the budget traveller, or those just wanting to save money, a little wisdom in selecting your bank and credit cards for travel can save you some money. Years ago, on my first jaunt to S.E. Asia, the bank I was using charged ATM fees for withdrawals made at any ATM machines outside their system. Before my second trip to India, I created some new bank accounts. At the time, I did my research on "flyer talk/wiki", a site that seems to be currently out of date. But, thankfully, you can check out the best ATM cards/banks for travelers, as well as credit cards, by doing a simple internet search for something like "best ATM cards for travellers". When I was researching banks and ATM cards back then, I learned that credit cards also vary in their fees for foreign transactions.
Back then I found that Charles Schwab provide a free checking account with interest when you open a brokerage account. The checking account has no minimums and no fees for regular use (of course, they do have fees for insufficient funds, wire transfers, etc.) On top of that, they reimburse any ATM fees for up to six withdrawals per month! Their checking account interest is not the greatest, but basically, you can enjoy free banking with them! Even for overseas ATM withdrawals! I have it on good word that they also provide excellent customer service.
Back then I learned that Capital One offered one of the few credit cards that did not charge a percentage for foreign transactions.
So, by choosing your ATM card and credit card well, you can save a lot of money!
Things are changing all the time. I recently discovered that Bank Of America offers credit cards with no extra fees for foreign transactions. I also discovered that Capital One 360 offers ATM cards (*) for which they charge no additional fees to the ones charges by the ATM provider. That's perhaps not as good as Schwab, but it's still pretty good compared to the bank I used years ago that charged me $4-5 per foreign ATM use.
So, before you set off on travel about the world, look into your banks, ATM cards and credit cards. Credit unions also are worth looking into. Not only can you keep your money local, but they often have less fees on their cards. With prudence, you can save a bunch of money.
Please do your own research... because things do change. As far as ATM cards and banking fees, Schwab and Capital One 360 seem to be good at the time I am writing this, but things change and other banks and cards may be as good. Currently Capital One and Bank of America offer credit cards that do not charge extra fees for foreign purchases.
As far as money on the road, it's always to balance your risks. US dollars in cash, US dollar American Express Traveller's checks, ATM cards, and credit cards (for credit or cash advance) are ways to balance your risk. Also having both a Visa and Mastercard ATM/credit card is wise. In some places, ATM machines are few and far between. And, they may not be functioning.
Once I was in a Himalayan town in India with two ATM machines, neither of which was working for foreigners. There were lines every day as people went desperate for cash. I finally got a small cash advance on my credit card from money changer and paid nearly 10% in fees to tide me over until the next town.
I will also admit, I am a bit of a fan of traveller's checks. In S.E. Asia (Thailand, Laos), Nepal, and India you can generally cash them at banks and money changers. Cash a week or months worth at a time, and it's as easy if not easier than an ATM machine.
In any case, having a few on hand, along with some US dollars, will cover you for emergencies, when your plastic is not working. Another thing to note, is that if you have American Express traveller's checks, you can receive mail at an American Express office. A handy thing to have, if you happen to need a replacement ATM card mailed to you! Not that I know by experience. Which reminds me, a month before you travel, you might check the expiration dates of the cards you plan to travel with and make sure they don't expire during your period of travel. You should be able to get your card provider to send you a new one before you go.
Happy travels!
Back then I found that Charles Schwab provide a free checking account with interest when you open a brokerage account. The checking account has no minimums and no fees for regular use (of course, they do have fees for insufficient funds, wire transfers, etc.) On top of that, they reimburse any ATM fees for up to six withdrawals per month! Their checking account interest is not the greatest, but basically, you can enjoy free banking with them! Even for overseas ATM withdrawals! I have it on good word that they also provide excellent customer service.
Back then I learned that Capital One offered one of the few credit cards that did not charge a percentage for foreign transactions.
So, by choosing your ATM card and credit card well, you can save a lot of money!
Things are changing all the time. I recently discovered that Bank Of America offers credit cards with no extra fees for foreign transactions. I also discovered that Capital One 360 offers ATM cards (*) for which they charge no additional fees to the ones charges by the ATM provider. That's perhaps not as good as Schwab, but it's still pretty good compared to the bank I used years ago that charged me $4-5 per foreign ATM use.
So, before you set off on travel about the world, look into your banks, ATM cards and credit cards. Credit unions also are worth looking into. Not only can you keep your money local, but they often have less fees on their cards. With prudence, you can save a bunch of money.
Please do your own research... because things do change. As far as ATM cards and banking fees, Schwab and Capital One 360 seem to be good at the time I am writing this, but things change and other banks and cards may be as good. Currently Capital One and Bank of America offer credit cards that do not charge extra fees for foreign purchases.
As far as money on the road, it's always to balance your risks. US dollars in cash, US dollar American Express Traveller's checks, ATM cards, and credit cards (for credit or cash advance) are ways to balance your risk. Also having both a Visa and Mastercard ATM/credit card is wise. In some places, ATM machines are few and far between. And, they may not be functioning.
Once I was in a Himalayan town in India with two ATM machines, neither of which was working for foreigners. There were lines every day as people went desperate for cash. I finally got a small cash advance on my credit card from money changer and paid nearly 10% in fees to tide me over until the next town.
I will also admit, I am a bit of a fan of traveller's checks. In S.E. Asia (Thailand, Laos), Nepal, and India you can generally cash them at banks and money changers. Cash a week or months worth at a time, and it's as easy if not easier than an ATM machine.
In any case, having a few on hand, along with some US dollars, will cover you for emergencies, when your plastic is not working. Another thing to note, is that if you have American Express traveller's checks, you can receive mail at an American Express office. A handy thing to have, if you happen to need a replacement ATM card mailed to you! Not that I know by experience. Which reminds me, a month before you travel, you might check the expiration dates of the cards you plan to travel with and make sure they don't expire during your period of travel. You should be able to get your card provider to send you a new one before you go.
Happy travels!
(*) note that Capital One currently has a friend referral link which provides the referrer with cash rewards. If you sign up via this link and meet the requirements, then I will receive a bonus.
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