Banking overseas is not as easy as we think, because it is not just taking out money by putting a card in the ATM. Moreover, it is the number one obstacle for travelers as nothing can be as bad as paying a fee for using your own money. To save money, while banking overseas you should remember three things such as how to eliminate foreign transaction charges, how to avoid banking fees and how to get a good exchange rate. If you want to save money while traveling then follow a trip before’s a guide to avoid bank fees while traveling.
If you want to save money while traveling then never use ATM in weird locations such as hostels, hotels, and local 7-11’s just for convenience because sometimes you have to pay for your convenience as they give horrible conversion rates and charges high ATM fee. So use a major bank to avoid a high ATM fee.
Try to use low fee currency cards like FairFX whose fee is quite low such as €1.50 per transaction on the Euro card. In addition to this, if you want to keep your cost to a minimum then try to withdraw the maximum amount in a few transactions because each transaction deducts money.
If you want to experience the worst exchange rates then exchange currency booths are the best example of it because nothing can be as worse as these exchange currency booths at the airport because they offer horrible exchange rates. So, avoid exchanging currency at airport booths.
At the end of your trip if you are bunched up with extra local currency then sell it to other travelers for USD. In this way, you can avoid a bank conversion and bank fee and can get a better rate.
However, it is tempting to exchange money with the people standing around at border crossings or with the random guy outside the bank as you think that they will offer you the best prices but it is not the fact because usually, they are scammers. So beware of these scammers to save your money.
Several Credit cards charge extra fees overseas usually a 3%–5% fee on any purchase so try to avoid those credit cards and use the right travel cards to save your money on your trip.
Another way to avoid banking fees while traveling is the use of Toronto Dominion banks which for ATM withdrawal usually charge $2.5 without foreign transaction fees.
You will often get a chance to charge in-home currency while using a credit card abroad so try to use home currency instead of picking a foreign currency. Because the rate which your bank will give you would be always high then the rate at which they convert the currency so always says no to them. Moreover, never use “foreign currency card” where at a set exchange rate you can preload money.
However, for foreign travelers, there are not several free ATM across the globe but there are some which do not charge banking fee. It is not very easy and sometimes full of errors and trials but once you find free ATM that says no to fee then it can be very beneficial for you. Moreover, some banks are part of the Global ATM network, they also allow you to withdraw money without charges. To find out these free ATMs through the use of social media or by talking to the natives of the country.
Try to use a credit card whenever it is possible because they give rates close to the official rates. And after credit cards, ATMs offer best rates however it is not as good as credit cards as they take a little more but ATM card is still better than money exchange.
We hope these tricks will help you in your next destination to save money while banking as over the course of a long trip bank money can add up to some serious money so to set aside cash, you should be proactive with regards to currency exchange and banking.
Copyright @tripbefore 2019