You’ve decided to spend your hard earned money on traveling the world. Good thing! But do you know how to manage your money and access it safely and cheaply while you are abroad? Overseas travel banking can be quite expensive. In order to save your money while traveling abroad, it is important that you know how to get a good exchange rate as well as how to avoid paying ATM and credit card transaction fees. All the money that you save this way can be used for other activities that could make your vacation an exciting and fun filled one. Here’s how you can avoid unnecessary banking fees and protect your money when you are traveling overseas:
Avoid overseas banking fees
Withdrawing money from an ATM is the best way to get local currency overseas. Not only is it quick and easy, you’ll also get a great exchange rate. But the problem is, every time you withdraw money from an ATM of a different bank, you will be charged a fee. This can add up to hundreds of dollars if you are traveling for a long period of time. So make sure to choose the right bank to avoid ATM fees.
Use a travel friendly debit card
If you are from the United States, the best thing to do is to open a Charles Schwab Investor Checking Account. This bank will refund all of your ATM fees at the end of each month, even those charged by other banks, anywhere in the world. With this bank, everything is free, there are no minimum balances and customer service is great. However, if you are not an US resident, a good option would be to open an HSBC checking account, as they have ATMs worldwide.
Keep your cash safe
There are plenty of incidents where travelers have been subjected to international financial fraud. The best way to avoid such situations is to have 3 bank accounts during your travel – a personal checking account (for personal purposes), a travel checking account (for travel expenses) and savings account (for keeping majority of the travel money). If you are carrying cash, make sure to stash some emergency money in places like toiletry bag, socks, under shoe inserts etc.
Use a credit card
Using a credit card is another way to save money while you travel. It serves as a great backup in emergency situations. Also you get the cheapest exchange rates when you pay with a credit card.