How to Avoid ATM Fees Worldwide!
Those of us who have traveled abroad, even the slightest, understand how insanely annoying and expensive it can be to obtain foreign currency. Getting some cash at an airport kiosk can be expensive and the lines are typically frustratingly long, which is the last thing you want to do after a long flight. ATMs are a great alternative since they spit out the currency for whatever country you are in, but they often charge ridiculous and unwanted fees. Sometimes, these fees could easily cost as much as one meal in certain international locations. Talk about a waste. I have found a great way to get around that and it has served me well on all of my travels since. By opening up a particular checking account with Schwab Bank, you will never have to worry about this situation again no matter where you are in the world!
Obtaining Foreign Currency For Trips (Previously)
In the past, when I had a trip departure date approaching, I would typically go to my bank and order foreign currency for whatever country (or countries) I would be visiting. I would do this because I absolutely hated having to get it at the airport’s currency exchange counters. It was always a more convenient alternative. However, there are a few problems with doing this. First off, the exchange rate is much worse whether you get currency from a bank within the US or from an airport counter at a destination. The exchange rate is typically the best when using a credit card (especially one with no foreign transaction fees) or a debit card (including ATM withdrawals) while traveling. Second, it is not safe to walk around with a lot of cash on you during a trip. This is especially the case in poorer countries. You could be pick pocketed, your luggage could be stolen, or your hotel or hostel could be broken into.
Story time…
A while back I visited Greece with a large group of friends. We were all staying at a hostel/ camp site kind of place on Ios Island. My friends, who had all been traveling together prior, had a bunch of cash in one of their bags. This cash was to be used throughout the rest of the trip. On our first night on the Island, the hut they were staying in got broken into and all of their money was taken. Needless to say, this put a huge damper on things at the very beginning of of our trip together.
The final problem with obtaining cash prior is that it is difficult to estimate just how much you will need for a trip before you get there or when you first arrive. I would always find myself having to hunt down an ATM at some point on each trip in order to restock on cash. Also, there were plenty of times I had to go back multiple times because I would misjudge just how much I needed. This would cause plenty of unwanted fees. The ATM would typically charge a fee of a couple dollars and my bank would also charge a separate $5 for each foreign ATM transaction!
The Solution
Finally, one day I figured out a much needed solution. Enter in the Schwab Bank High Yield Investor Checking Account. If you sign up for this account, you will be reimbursed for ATM fees worldwide with no questions asked. In order to get this, you can apply for the account online or over the phone. It is very important to note that the only down side is that applying will cause a hard pull on your credit report, which could slightly lower your score. Although this effect is minimal and short lived, it is an important consideration for some. The reason there is a hard pull is due to the fact that the checking account also comes with a brokerage account. However, you don’t ever have to even use that account if you don’t want to. The other nice thing about it is that there is no minimum balance you need to keep in the checking account at any given time. It could be $0 or it could be $2,000. There are no service fees and, although it’s low, you will receive interest on the money you do keep in there. You are given a debt/ATM card that can be used practically anywhere. At the time of an ATM withdrawal, you will be charged for any fees, but at the end of each month Schwab will reimburse your account for them. Although I looked into this mainly for ATMs abroad, this works for every ATM that charges a fee. So rather than having to seek out an ATM affiliated with your main bank in order to avoid a fee, this gives you the opportunity to use any one closest to you. Yes, even those dreaded and inflated strip club ATMs here in the states are included. They can charge around $5 per transaction! You’re welcome.
My Experience
So I signed up for the checking account/ brokerage account combo. I nicknamed the account “Travel Account”. Shortly after account approval, I received a debit card in the mail. I deposited $1,000 into the account using the mobile deposit feature. To do this, I used a check from my Chase checking account and wrote it out to myself for the amount. I typically stick to keeping $1,000 in there at all times and for every trip. Any time I was forced to use an ATM that wasn’t from my main bank (Chase), I used my Schwab debit card to avoid the fee. I would also use the debit card at ATMs while traveling abroad. After looking at my statement, I saw that I wasn’t charged any fees by the bank for using the ATMs and the bank reimbursed me for all fees acquired by each individual ATM. It worked like a charm! So now, every time I go on a trip, I take absolutely no cash with me (unless that country is known for not having ATMs). As soon as I arrive at the airport of my destination, I hit the ATM. I take out only enough to get me through the first day or so. Then, throughout the trip, I revisit the ATM as needed without ever worrying about fees. Although I try to always use a credit card with no foreign transaction fees whenever possible (so that I get points for purchases), there are plenty of times that cash is important. Aside from avoiding ATM fees and avoiding carrying too much cash on me at one time, this also enables me to keep my travel money separate from my main bank account. This could be important when traveling abroad, because there are plenty of stories out there where people have scammed ATMs that tourists use. There are also even stories out there where thieves or crooked cops have forced tourists to take money out of bank accounts for pay offs. Although these are very rare and unusual occurrences, I think that it is obvious that the lower the amount of money you can keep in that account at times such as these, the better!
