How to Avoid Paying Bank Fees While Traveling (Updated 2025)

Finding the money for travel is among the largest challenges individuals face in terms of taking a visit. It could actually take years to save lots of up for that dream journey!

And, when individuals lastly save up sufficient and hit the highway, what do most of them find yourself doing?

They throw cash away on avoidable financial institution charges!!

Banking abroad is extra than simply placing your card in an ATM and taking out cash. When you travel on a budget, it entails figuring out methods to keep away from financial institution charges, alternate charge penalties, and making your cash give you the results you want.

I do know too many individuals who journey overseas and find yourself paying obscene financial institution charges once they journey.

And, as of late, there’s completely no want to try this. You didn’t save up all this cash with a purpose to give it to the banks, proper? I do know I didn’t. I wish to hold all of it for myself as a result of each averted price is extra money for meals, drinks, and actions on the highway!

Right here is the way you eradicate ALL financial institution charges if you journey in 5 straightforward steps:

1. Remove ATM Charges

ATM charges can actually add up — particularly if you happen to’re touring for weeks or months at a time. Let’s give it some thought: when you’re on the highway, you would possibly withdraw cash from an ATM twice per week. In case you withdraw cash from a global ATM along with your common debit card, you’ll be hit with three completely different charges:

• Your financial institution’s price for utilizing an ATM outdoors of their community (normally $2.50–5 USD)
• The ATM’s price (normally $3–5 USD)
• A world conversion price (normally 1–3% of the transaction)

As you may see, these charges in a short time add up. Charges range around the globe, however let’s say that you find yourself paying round $7 USD per withdrawal. That’s $14 per week, $56 per thirty days, or $672 per yr! Are you aware what number of days you possibly can spend in Southeast Asia for that quantity? Nearly three weeks!

Even if you happen to solely use the ATM as soon as per week, that’s nonetheless $364 USD per yr. And most vacationers I do know go to the ATM much more than twice per week, which solely will increase the quantity in charges they pay. Why give banks cash you want for journey? You labored onerous saving your cash — don’t waste it by giving it to a financial institution.

That can assist you keep away from charges, listed below are 4 belongings you’ll wish to do in your subsequent journey to eradicate these pesky charges:

First, you possibly can be part of a financial institution that’s a part of the World ATM alliance, the principal worldwide banking community. The banks listed under have agreements with each other whereby if you happen to belong to 1 financial institution, you should use the ATMs of all the opposite banks with out being charged an ATM price:

• Financial institution of America
• Barclay’s
• BNP Paribas
• Deutsche Financial institution
• Scotiabank
• Westpac

Observe: Financial institution of America fees a 3% transaction price on all non-USD foreign money withdrawals, even for banks inside the alliance. (Tip: Usually, if you happen to name Financial institution of America, they’ll refund most or all of this transaction price.)

Past these banks, particular person alliance members have extra partnerships. For instance, Financial institution of America additionally waives ATM charges with TEB in Turkey, UkrSibbank in Ukraine, and China Development Financial institution in China. And Westpac has an settlement with CIMB, a financial institution in Indonesia and Malaysia.

It’s necessary to notice that some nation subsidiaries of the above banks may not be included within the ATM Alliance. For instance, in case you have Financial institution of America, the BNP Paribas waiver solely works for its France operation (not the rest) whereas Westpac solely works in Australia and New Zealand however not Fiji.

However, in my view, the most effective U.S. financial institution is Charles Schwab. Whereas Charles Schwab doesn’t have offers with any banks abroad like these talked about above, they don’t cost any ATM charges and can reimburse any ATM charges from different establishments on the finish of every month. You’ll need to open a person checking account to qualify, however there isn’t a minimal deposit required and no month-to-month service price.

You’ll by no means pay a price with Charles Schwab, and their ATM card can be utilized in any financial institution machine around the globe. If there isn’t a department close to you, you may open an account on-line by going to their web site. To me, that is the present BEST ATM card to have. I by no means, ever take into consideration charges due to it.

Listed below are some steered ATM playing cards for non-US vacationers:

• Canada: Scotia and Tangerine are each a part of the World ATM Alliance.
• Australia: ING, Citibank, or HSBC haven’t any price playing cards.
• UK: Starling allows you to keep away from ATM charges overseas. Monzo has fee-free worldwide transactions in your first 200 GBP withdrawn each 30 days.

2. Keep away from Credit score Card Charges

The subsequent main price we have to do away with is the bank card overseas transaction price. Many bank cards cost a 3% price on purchases made abroad. That may add up since most of us use our bank card for every part. It’s turn into much more frequent for bank cards to have “no overseas transaction charges” so it’s unlikely you’ll have a card that does however you’ll want to ask.

My favourite no abroad transaction price playing cards are the Chase Sapphire Preferred, Capital One, and Citi Premier, however there are tons and tons of choices and it’s best to decide the cardboard that not solely doesn’t have a price however is sweet for incomes factors too.

For extra recommendations on bank cards, together with greatest present affords, you can find all my favorite travel cards here.

For non-US residents, verify the next web sites that listing playing cards that may not cost any abroad charges:

3. Decrease the Trade Price “Penalty”

Each time you utilize your card abroad, your native financial institution converts the transaction into your native foreign money for billing functions and takes just a little off the highest for doing so. Thus, the official charge you see on-line is just not what you truly get. That’s the interbank charge and, until you turn into a significant financial institution, you’re not going to get that charge. All we will do is get as shut to that charge as doable. To take action, it’s essential:

Use a bank card -Bank card corporations get the most effective charges. Using a credit card will get you an alternate charge closest to the official interbank foreign money charge so keep away from an ATM or money if you happen to can.

Use an ATM – ATMs provide the most effective alternate charge after bank cards. They aren’t nearly as good as bank cards since business banks take just a little extra off the highest, however it’s a lot better than exchanging money. Cash alternate places of work provide the worst charges as a result of they’re thus far down the meals chain, they will’t get the most effective alternate charge (plus, they normally cost a fee as properly).

Don’t use ATMs in bizarre areas – Utilizing these ATMs you discover in lodges, hostels, native 7-11s, or another random place is a foul concept. They’re handy, however you’ll pay for that comfort. They all the time cost excessive ATM charges and provide horrible conversion charges. Skip these ATMs and discover a main financial institution.
 

4. Don’t Change Cash at Airports

Most alternate bureaus in airports are thus far down the monetary meals chain they don’t have the clout to supply good alternate charges. The charges you see at airports are the worst — by no means, ever use an alternate bureau there until you completely should.

One other tip: keep away from utilizing the corporate Travelex in any respect prices. They’ve the worst charges and charges. By no means, by no means use them. Keep away from their ATMs too!
 

5. All the time Decide the Native Forex

If you use your bank card overseas, you’ll usually be given the choice to be charged in your house foreign money (i.e., as an alternative of being charged in euros, they’ll cost you in US {dollars}). By no means say sure. The speed at which they’re changing the foreign money is all the time worse than the speed your financial institution offers you.

Decide the native foreign money and let your bank card firm make the conversion. You’ll get a greater charge and avoid wasting cash within the course of.
 

6. Don’t Get Forex at Dwelling (and Skip International Forex Playing cards!)

Whereas shopping for foreign money at dwelling would possibly appear to be a good suggestion, you’ll find yourself getting a worse alternate charge. Until you’re 100% positive you’ll want money proper on arrival, keep away from exchanging cash in your house nation.

Airports all have ATMs the place you may withdraw cash if you happen to desperately want it. (Nonetheless, I recommend you wait till you get to your vacation spot and withdraw cash downtown/from an ATM away from the airport. You’ll get a a lot better charge and pay a a lot decrease price. Use your bank card on arrival after which get money later.)

Moreover, keep away from any “overseas foreign money playing cards” the place you may pre-load cash and lock within the alternate charge. Looks as if a good suggestion, proper? Incorrect! You might be mainly making an attempt to foretell the alternate charge and betting you may beat the market. You’re saying this charge is just not going to worsen, however what if it will get higher? You don’t know! (And, if you happen to do know, try to be inserting bets out there.) Furthermore, these playing cards include a whole lot of charges that don’t make them price it. Simply keep away from them.

Bonus: Make Your Cash Work For You

Saved a bunch of cash in your journey? Have it earn more money! Rates of interest are round 4% proper now so you may have your cash earn one thing when you’re away. It’s not such as you withdraw it all of sudden, proper? I hold my cash in a high-yield financial savings account reasonably than in a giant financial institution! Here’s a listing of a number of the present highest yields you will get:

Be sensible and financial institution sensible. I haven’t paid a financial institution price whereas touring the world in over fifteen years and also you shouldn’t both.

And, with these easy ideas, you’ll by no means should once more.

Find out how to Journey the World on $75 a Day

My New York Instances best-selling ebook to journey will educate you methods to grasp the artwork of journey so that you simply’ll get off get monetary savings, all the time discover offers, and have a deeper journey expertise. It’s your A to Z planning information that the BBC referred to as the “bible for price range vacationers.”

Click here to learn more and start reading it today!