You're just off the plane, your wallet full of useless American dollars, and you're looking for the quickest way to exchange your currency. BEWARE the evil currency exchange booth. They have some of the worse conversion rates available, and charge commission on top.
The smartest option, as any well seasoned traveler knows, is to come prepared with the proper ATM card.
There are several ATM cards available in the USA that will refund your ATM withdrawal fee anywhere in the world, and give you an excellent conversion rate as you withdraw from your US bank in a foreign location.
First, pick a bank in the Global ATM Network. This is a network of large banks that have come together and waived fees and allow for free ATM withdrawals.
Below is a list of major banks in this alliance:
Be sure to check with your local bank on specific coverage areas. There are some exceptions i.e. if you use your Barclays card in one country, there might not be a fee but in another, there is a fee. Double check before you go!
Secondly, if you are a US resident, the best bank to use is Charles Schwab. Why? Charles Schwab has no fees and reimburses all your ATM fees at the end of each month. You will need to open a high yield checking account in order to qualify, but there is no minimum deposit required and no monthly service fee. Their ATM card can be used in any bank machine around the world, and you'll never pay a fee. This is my primary bank card. Since getting it, I've avoided all ATM fees. It's saved me hundreds per year.
The other option is Fidelity's Cash Management Account. They also refund all ATM fees and have a similar setup to the Charles Schwab account.
Third, get a low fee card. I use HSBC as my back up because HSBC has ATMs all over the world and charges only $2.50 USD per ATM transaction when you use a non-HSBC ATM. While it's not as good as zero, its still better than what a lot of other banks charge. Additionally, Capital One doesn't charge any withdrawal fees, but you do have to pay any fees charged by the local bank.
Finally, ask your local bank or credit union. Not charging ATM fees has become a widespread practice over the last few years so make sure to ask your local bank. Some other banks that don't charge overseas ATM fees:
Citibank Australia
Norwich &
Peterborough Building Society (UK residents)
Sidenote: Always have two bank accounts. It is good to have a backup in case one card is lost or stolen.
The next major fee we need to get rid of is the credit card foreign transaction fee. Most credit cards change a 3% fee on purchases made overseas. That can add up since most of us use our credit card for everything. The following cards have no overseas transaction fees:
Capital One No Fee Hassle Card
Chase Sapphire Preferred
Chase
Ink (Business card)
United Mileage Plus
Some Discover cards
Barclays Arrivals World
If you use these tips, you should save some major mulah - and
that means more gelato for you.