Best Bank Accounts For International Travel

what bank accounts are good for traveling abroad

When travelling abroad, it's important to have a bank account that doesn't charge hefty fees for using your card. Many banks charge a range of fees for spending with your card abroad, and some will even charge you for withdrawing cash.

When choosing a bank account for travelling, consider whether the account charges a fee for using your debit card for cash withdrawals or spending, whether the bank provides an overdraft facility, whether the bank has a smartphone app, whether it's easy to open an account, whether you can make international transfers, and whether the account charges a monthly fee.

Some of the best bank accounts for international travel include Capital One 360, Charles Schwab, HSBC, Citibank, and Revolut. These banks offer benefits such as low wire transfer charges, decent currency conversion rates, international ATM fee reimbursement, and foreign currency delivery to your home.

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International ATM access

When it comes to international ATM access, there are a few key things to consider when choosing a bank account for travelling. Firstly, look for an account that doesn't charge a fee for using your debit card for cash withdrawals or spending abroad. Some banks may offer a limited number of free transactions per month, so be sure to check the terms and conditions. It's also worth considering an account that provides refunds for any out-of-network ATM fees that you may incur while travelling. This can save you a significant amount of money, especially if you plan on making frequent withdrawals.

Charles Schwab High Yield Investor Checking® Account

Charles Schwab is often touted as one of the best banks for international travellers. Their High Yield Investor Checking® Account offers unlimited refunds for ATM fees worldwide and doesn't charge any foreign transaction fees. However, you must open a brokerage account with Charles Schwab before opening a checking account. Additionally, there is no way to deposit cash directly into this account.

Capital One 360 Checking®

Capital One 360 Checking® allows you to withdraw from any ATM in the world without incurring additional fees. The account also earns interest on the account balance, and automated customer service is available 24/7 by phone. However, if you use an out-of-network ATM, your fees will not be reimbursed. Capital One also has a limited number of physical branches, so you'll primarily be relying on their mobile app for banking functions while travelling.

Betterment Checking

Betterment Checking is excellent for international travel as it refunds all ATM fees, both domestic and international. This includes the fees charged by out-of-network ATMs. The account has no fees of any kind and no minimum balance requirements. However, you cannot deposit physical cash into the account via an ATM.

HSBC Global Money Account

The HSBC Global Money Account offers a multi-currency debit card and the ability to convert, hold, and send money in over 50 currencies to 200 countries. Using your HSBC card for purchases or ATM withdrawals is free of charge worldwide, and they offer competitive currency exchange rates. However, to apply for this account, you must already have an HSBC current account, and the service is only available through the HSBC mobile banking app.

Revolut

Revolut is a digital-only institution that offers a simple and flexible way to manage your finances while travelling. You can convert multiple currencies within the app, allowing you to secure the best rate before your trip. Transactions and withdrawals are free of charge as long as you stay within your monthly limit and perform them on weekdays. If you exceed your limit or make transactions on weekends, a fee will apply.

In conclusion, when choosing a bank account for international travel, look for accounts with no foreign transaction fees and ATM fee reimbursements. This will help you avoid unexpected charges and make your travels smoother and more enjoyable.

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Low foreign transaction fees

When travelling abroad, it is important to have a bank account that does not charge hefty foreign transaction fees every time you spend on your bank card.

Capital One 360

Capital One 360 is a favourite of NerdWallet because its fees are low across the board. It does not charge a foreign transaction fee for using your debit card outside the U.S. or for any transactions made in a foreign currency. It also does not charge a fee for taking money out at an ATM, although it will not refund you if the ATM owner charges a fee. Capital One has over 70,000 free ATMs worldwide.

Charles Schwab

Charles Schwab Bank does not charge foreign transaction fees and refunds all fees charged by ATMs worldwide. However, to open a checking account, you will have to open a Schwab brokerage account at the same time.

HSBC Bank

HSBC Bank offers a multi-currency debit card and the ability to convert, hold and send money in more than 50 currencies to 200 countries. Using your HSBC card to make purchases or withdraw cash is free of charge around the world. To apply for the account, you must already have an HSBC current account.

First Direct 1st Account

First Direct's 1st Account does not charge a fee for using your debit card for spending overseas or for making cash withdrawals abroad. The account also comes with a £250 interest-free overdraft.

Virgin Money M Plus Account

There are no fees for using your Virgin Money M Plus Account debit card for spending or cash withdrawals in the UK or abroad. The account has no monthly fee and you will have access to a linked savings account.

SoFi Checking and Savings

SoFi Checking and Savings is a hybrid savings/checking account with a competitive interest rate and a MasterCard debit card for easy access to your cash. SoFi does not charge a foreign transaction fee when you make a purchase with your debit card abroad, although MasterCard will charge 0.20%.

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Exchange rates

When travelling abroad, it's important to consider the exchange rates offered by your bank to ensure you're getting the best deal. Here are some banks and accounts that offer good exchange rates for international travel:

Charles Schwab

Charles Schwab is a popular choice for travellers due to its favourable exchange rates and refund policies. The Charles Schwab High Yield Investor Checking Account eliminates ATM expenses by charging no withdrawal fees, no foreign transaction fees, and offering unlimited ATM fee rebates. The account is linked to a Schwab One brokerage account, which has no fees or minimum balance requirements. Additionally, Charles Schwab will refund any fees charged by foreign ATM networks. However, this account does not offer international wire transfers.

Capital One 360

Capital One 360 is a good option for those looking for low foreign transaction fees. This account charges no transaction fees on international payments and no foreign ATM fees. It is managed through mobile banking and has a user-friendly app. While most day-to-day services are free, there are fees for wire transfers and replacement cards.

Bank of America

While Bank of America charges fees for international transactions, it offers better exchange rates for currency exchange than other US banks. There are no fixed fees for ordering foreign currency, but there is a delivery fee for orders under $1000.

Citibank

Citibank is a good option for those who need to send money internationally. With Citibank Global Transfers, you can send fee-free international wires to Citibank accounts in over 20 countries. While there is no fee for the transfer itself, there is an exchange rate margin of around 5% for converting your dollars.

Revolut

Revolut is a non-bank multicurrency account that offers competitive exchange rates and the ability to hold and exchange multiple currencies. It provides access to over 55,000 ATMs worldwide for fee-free withdrawals. However, there is a markup fee for foreign currency exchanges made on weekends.

Wise (formerly TransferWise)

Wise is a Money Service Business that provides a range of features for international travellers, including the ability to hold and convert multiple currencies, send money overseas with low and transparent fees, and a debit card for use in 174 countries. Wise offers mid-market exchange rates on all transactions.

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Overdraft facilities

When travelling abroad, it is important to have a bank account that offers low fees and good conversion rates. Some banks offer accounts with no foreign transaction fees, international ATM fee reimbursement, and low wire transfer charges.

An overdraft facility is a financial tool that allows individuals to withdraw money from their bank account on credit, even with a zero account balance. This is especially useful when travelling, as it provides immediate funds to meet urgent cash requirements. Here are some key features of overdraft facilities:

  • Approved credit limit: Overdraft accounts have a pre-approved credit limit, which is based on the individual's creditworthiness and the bank's policies. This limit defines the maximum amount that can be withdrawn beyond the account balance.
  • Interest charges: Interest is only charged on the amount utilised, not the total credit limit. This makes overdrafts more cost-effective.
  • Nil prepayment charges: Most overdraft facilities do not levy charges for early repayment, allowing individuals to repay the borrowed amount at their convenience without incurring extra costs.
  • Repayment structure: Unlike loans, overdrafts do not require repayment through fixed monthly instalments (EMIs). Individuals have the flexibility to repay the amount as per their cash flow. However, a minimum monthly payment, including interest on the borrowed amount, is usually required.
  • Joint borrowers: Overdraft facilities can be extended to joint account holders, providing additional flexibility and accessibility.

Some banks that offer overdraft protection include Fidelity, which can be linked to a brokerage account, and Axis Bank, which offers a 24x7 overdraft facility. Additionally, some credit cards, such as the Capital One Quicksilver card, offer overdraft protection when used for purchases.

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Mobile app availability

Charles Schwab High Yield Investor Checking® Account:

The Charles Schwab mobile app provides 24/7 live online chat support, making it convenient to access customer service while on the go. Additionally, the account offers unlimited refunds for ATM fees worldwide and doesn't charge foreign transaction fees, making it ideal for international travellers. However, if you're looking for high-interest rates, you may want to consider other options.

Capital One 360 Checking®:

Capital One's mobile app is rated over 4.5 stars in both the App Store and Google Play store, making it a reliable choice for travellers. The account allows you to withdraw from any ATM worldwide without incurring additional fees and earns interest on the account balance. It's important to note that out-of-network ATM fees are not reimbursed.

Betterment Checking:

Betterment is known for its investing products, but its checking account is also excellent for international travel. The Betterment mobile app is required to manage your account, and it offers features like cash-back rewards at select retailers. The account refunds all ATM fees, both domestic and international, and there are no minimum balance requirements. However, you cannot deposit physical cash into the account via an ATM.

Axos Bank® Rewards Checking:

Axos Bank is an online-only institution, so its services are primarily accessed through its mobile app, which offers 24/7 customer support. The Axos Bank Rewards Checking account provides unlimited domestic ATM fee reimbursements and no monthly maintenance fees. While there are no physical branches, your money is FDIC-insured.

Revolut:

Revolut is a digital-only institution offering a mobile app with features such as the ability to convert multiple currencies and secure the best exchange rates ahead of your travels. The free standard plan includes a fee-free currency exchange limit of £1,000 per month and a fee-free withdrawal limit of £200 per month. However, a markup fee is applied on major currencies during weekends.

Monzo:

Monzo consistently scores highly on customer satisfaction ratings, and its mobile app makes it easy to manage your money at home and abroad. You'll receive instant notifications with breakdowns of costs in the local currency and the Mastercard exchange rate. The free plan offers a fee-free cash withdrawal allowance of £200 per month abroad, after which a 3% fee applies.

These options provide a range of features and benefits to suit your international travel needs, and their mobile apps can enhance your overall banking experience while on the go.

Frequently asked questions

Some good bank accounts for international travel include Capital One 360, Charles Schwab, HSBC, Citibank, and Revolut.

When choosing a bank account for traveling, consider whether the account charges fees for using your debit card abroad, whether the bank provides an overdraft facility, whether the bank has a smartphone app, how easy it is to open an account, the cost of international transfers, and whether the account charges a monthly fee.

Using a credit card when traveling abroad can provide benefits such as rewards and travel-related perks. Additionally, credit cards usually offer a better exchange rate than exchanging cash, and purchases made with a credit card may be covered by purchase protection policies.

To minimize fees, try to use ATMs that are in your bank's network, as out-of-network ATMs may charge additional fees. Also, be aware of foreign transaction fees charged by your bank or credit card company, and consider using a bank or card that does not charge these fees.

It is generally recommended to exchange currency through your bank or credit union, as they usually offer better exchange rates than airport exchange services or on-site travel spots. You can also consider using a bank or card that offers good exchange rates and does not charge additional fees for currency conversion.

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