If you travel abroad or plan to in the future, it’s essential to shop for a good Visa or MasterCard credit card that does not charge foreign transaction fees, regardless of the country you’re visiting. Additionally, you should have a checking account that charges no fees for using ATMs anywhere in the world.

Most major U.S. banks charge a foreign currency conversion fee of 1% to 3% for any ATM transaction made abroad, often adding an additional $1 to $5 fee on top of that. Furthermore, most major credit cards charge foreign transaction fees for any transaction made abroad, which can add up if you travel internationally frequently.

It gets worse: you will also end up paying high fees and getting poor exchange rates if you exchange U.S. dollars at currency exchange stores found at airports or in popular tourist areas. Most of these stores make significant profits from international travelers who are not prepared to avoid these unnecessary fees.

If you are one of those international travelers, keep reading to learn how to say NO to these ridiculous and unnecessary fees.

The Trick to Avoiding Fees

To avoid these fees, you need the following:

1. An ATM or debit card with no foreign transaction fees and no ATM fees for using an ATM anywhere in the world.
2. A Visa or MasterCard credit card with no foreign transaction fees for using the card anywhere in the world.

What Bank Offers an ATM Card with No Fees?

Before recommending any bank, I want to clarify that none of the links in this post are affiliate links.

Charles Schwab Investor Checking Account

With Schwab Bank, you pay no ATM fees and no foreign transaction fees anywhere in the world. It is the best bank in the U.S. for most international travelers, and in my opinion, every traveler should consider having this checking account with Charles Schwab Bank.

Why I Recommend the Charles Schwab Investor Checking Account:

1. No ATM fees: Schwab Bank reimburses all ATM fees at the end of the month. You can receive unlimited ATM fee reimbursements. For example, if an ATM in London charges you £5, Schwab Bank will reimburse that fee at the end of the month. No matter how many times you use ATMs abroad, Schwab Bank will automatically reimburse all fees charged by those ATMs at the end of the month.
2. No foreign transaction fees: You can withdraw cash in the local currency from any ATM worldwide without worrying about foreign transaction fees.
3. Best conversion rate: You get the best conversion rate on currency when withdrawing cash in the local currency from any ATM abroad. Always choose the local currency when withdrawing cash to ensure you get the best currency exchange rate.
4. No minimum balance or monthly service fees.
5. Excellent U.S.-based customer service: Schwab Bank’s customer service always exceeds my expectations.
6. Free online bill pay and standard checks.
7. Mobile check deposits: Easily deposit checks using the Schwab mobile app.
8. FDIC-insured deposits up to $250,000.
9. Linked accounts: You can link the account to your other bank accounts to easily transfer money in and out of your Schwab checking account. You automatically get a linked Schwab brokerage account, which you are not required to use or pay fees for. Schwab also offers low-cost index funds, such as the Schwab Total Stock Market Index Fund (SWTSX), with an expense ratio of only 0.03%.

By having the above ATM/debit card from Schwab Bank, you will no longer need to go to currency exchange stores to exchange U.S. dollars into local currency, and you will no longer pay any ATM fees or foreign transaction fees. You will always get the best conversion rate when withdrawing cash in the local currency from an ATM abroad. This is truly a fantastic deal that no other bank can beat.

Credit Check: Schwab Bank places a hard inquiry using Equifax or TransUnion and ChexSystems when you apply for the Charles Schwab Investor Checking Account.

What About Credit Cards?

What are the best credit cards to use abroad? I prefer Visa or MasterCard credit cards with Chip-PIN technology, offering great travel protection benefits and no foreign transaction fees. I usually carry a small amount of cash in the local currency for places that don’t accept credit cards. I use the Schwab ATM card to withdraw a small amount of cash and use credit cards for all other transactions whenever possible.

By following these tips, you can save money on fees and enjoy your travels without worrying about unnecessary costs.