Tips on How to Avoid Hefty Bank Fees when Traveling
When traveling, banking requires you to know three things. First, you need to know how to avoid bank fees. Second, know how to avoid foreign transaction fees. And third, know how to get the best exchange rate. Talking to a old pen pal by the name of Austin who owns a San Antonio Appliance Repair shop and thanks to his success he is able to travel at least 3 times a year, but he goes to explain to me that many people are slapped with hefty fees for credit card transactions when they pay ATM charges overseas. But, you don’t have to incur these expenses when traveling. Simply follow these tips to avoid bank fees when traveling.
Eliminate Hefty ATM Fees
ATM fees may seem small but they can add up to a significant amount. If you withdraw money using an ATM two times every week, you spend about $10 per week. This totals to $40 per month. In a year, you will spend a whopping $520. And, most travelers withdraw money from the ATM more times than twice a week. Clearly, there is no reason to give banks money that you can spend on travel. To avoid this, choose a bank in a Global ATM Network. This will enable you to avoid high ATM fees whenever you withdraw money from the ATM overseas. You can also get low-fee cards or ask your local credit or bank union about the best ways to avoid hefty ATM fees.
Avoid Credit Card Charges
The fees for most credit cards are 3% on overseas purchases. This can add up to a significant amount if you use a credit card to make most purchases. Therefore, get a card that does not charge a hefty fee for overseas transactions. Essentially, look for a card that does not charge this amount.
Minimize Penalty for Exchange Rate
The transactions that you make overseas using a credit card are converted into the local currency for purposes of billing. On top of doing this, the bank may take a little amount from the transactions. To avoid this, use ATMs or credit cards with minimal fees. What’s more, choose local currency when allowed a chance anytime you use a credit card overseas.
Generally, bank fees may seem minor but they can add up to a significant amount during a long trip. Follow these tips to avoid hefty bank fees when traveling overseas. …