This article describes the method that I use and recommend to avoid international ATM fees completely. Use this guide to save money when traveling by withdrawing local currency for free.
Traveling internationally can be both amazing and challenging at the same time. One of those challenges I think we all experience is obtaining the local currency in your destination.
It seems like every way to obtain local cash is a scam or is expensive. I’m talking about the high Automated Teller Machine (ATM) fees, international foreign transaction fees, inflated exchange rates, and companies taking a cut from cash conversions.
After many international trips where I’ve experienced these problems countless times, I have found the best solution to take out cash internationally completely for free.
Short on time? Here’s the main takeaway:
Converting and obtaining local currency is difficult and typically expensive. However, there’s an easy solution to avoid these extra costs: use a Betterment checking account and debit card. This method allows you to use international ATMs for free, without any ATM fees or foreign transaction fees.
Table of Contents
What Are ATM Fees
ATM fees are charges that can be incurred when you use an ATM to withdraw cash, check account balances, or perform other banking transactions. We want to avoid these fees because they can add up quickly. You should not have to pay to access your own money! ATM fees can include the following:
Out-of-Network Fee: This fee is charged when you use an ATM that does not belong to your bank’s network. Your bank may charge you a fee for using an ATM owned by another bank or a third-party operator.
Operator Fee: The ATM operator, which could be a different bank or a private company, may also charge a fee for using their machine. This fee is usually displayed on the ATM screen before you complete a transaction. This fee is often a flat rate, such as $5.
Foreign Transaction Fee: If you use an ATM outside of your home country, your bank may charge you an additional fee for international transactions. This fee is on top of any out-of-network and operator fees. This fee is typically between 1 and 3%.
Balance Inquiry Fee: Some ATMs charge a fee if you check your account balance. I recommend never using an ATM to check your balance. Use your bank’s mobile app instead.
How To Take Out Cash For Free Abroad – Use Betterment
The easiest way to withdraw cash abroad in the local currency for free is by using a checking account with a debit card that accomplishes all of the following:
- Reimbursed ATM fees worldwide
- No foreign transaction fees
- No checking account or hidden fees
- No checking account minimum required balance
Very few banks in the world offer all of these benefits. However, there is one bank in particular that I love and use that accomplishes all of these requirements: Betterment.
What is Betterment?
Betterment is an online financial institution that offers a variety of banking and investment services, including high-yield savings accounts, investing options, and checking accounts with no monthly fees. Betterment is an online bank only, so there are no physical locations associated. This may deter some people, but it allows online banks to offer their services for significantly less cost than physical banks. This makes it absolutely perfect for international travel.
Why I Reccomend Betterment
Betterment offers a unique checking account and debit card that refunds fees worldwide. Here are some key benefits for why I recommend Betterment for international travel:
Fee Refunds: Betterment refunds all ATM fees, including international fees, so you can access your money anywhere without worrying about extra charges.
No Account Fees: The Betterment checking account and debit card are free to open and have no account maintenance fees, making it accessible to all, even if you have a checking account already. It is perfectly acceptable to have numerous checking accounts. Your Betterment account can be dedicated to travel if you’d like.
Online Baking: You can transfer money easily between your accounts online and their customer service is also available online. The app has a wonderful user interface that is incredibly easy to use. You can also lock the card from your phone.
Other Benefits:
- High-Yield Savings: In addition to the checking account, Betterment offers a high-yield savings account that lets you earn interest on your savings. The interest rate is extremely competitive, substantially higher than the average. Sometimes it exceeds 5%, which is unheard of!
- Low-Fee Investing: Betterment is also known for its automated and low-fee investing options, ideal for both beginners and seasoned investors. This is another great way to save money, especially if you are paying high fees to have a financial adviser.
Steps to Use International ATMs for Free
1. Open a Betterment Checking Account
Start by opening a Betterment checking account. The process is straightforward and can be done online in a few minutes. The account is completely free, with no account fees or hidden fees at all. After opening the account, you’ll receive a Betterment Visa debit card in the mail.
2. Activate Your Debit Card
Once you receive your debit card, activate it through the Betterment app or website. This card will be your key to accessing ATMs worldwide without fees.
3. Use Any ATM Worldwide
When you travel internationally, use your Betterment debit card at any ATM. Betterment will automatically refund any fees charged by the ATM operator and any international transaction fees, usually within a few days. You don’t need to do any extra steps to make this work.
When using the ATM, it is important to select the local currency. If you do not select the local currency, the ATM might charge you a higher conversion rate.
4. Manage Your Account Online
Betterment has a website and mobile app where you can manage your accounts online from anywhere. This makes it easy to keep track of your money while traveling.
5. Take Advantage of Betterment’s Other Financial Services
In addition to fee-free international ATM withdrawals, consider utilizing Betterment’s savings account or investing options. I like to use their savings account to make specific goals for travel funds so that I earn interest before I travel. It adds up!
Additional Tips for Using International ATMs
Avoid Dynamic Currency Conversion: When withdrawing money, always choose to be charged in the local currency rather than your home currency to get a better exchange rate.
Avoid Withdrawing Too Much: Many ATMs in popular tourist destinations will default to extremely high withdrawals, such as $100 or $500 in an attempt to make more money from the fees. Make sure to be careful in your selection, it is easy to make a mistake.
Monitor Your Account: Regularly check your account for any unauthorized transactions and ensure that all ATM fee refunds are processed.
Frequently Asked Questions (FAQs)
1. Can I use Betterment if I already have another checking account?
Yes, you can use Betterment in addition to your existing checking account. It is free, so there is no detriment to opening the account.
2. How soon are ATM fees refunded?
ATM fees are typically refunded by Betterment within a few days of the transaction. You don’t need to take any extra steps to receive the refund.
3. What should I do if an ATM offers dynamic currency conversion?
Always choose to be charged in the local currency rather than your home currency to avoid dynamic currency conversion. This ensures you get a better exchange rate and avoid additional fees.
4. Is it safe to use international ATMs?
Yes, it is generally safe to use international ATMs, but you should always monitor your account for unauthorized transactions and report them immediately.
5. Should I use the debit card to pay for my other purchases?
While you can use the Betterment debit card to pay for purchases abroad without incurring any fees, I recommend using a travel credit card so that you can collect rewards. The Betterment debit card is best used for ATM withdrawals.
Conclusion – How to Take Money Out For Free While Traveling Abroad
Opening a Betterment checking account and using their debit card is my favorite travel hack to avoid international ATM fees. With no account fees, refunded ATM charges, a high-yield savings option, and an investing option, Betterment is a comprehensive solution for managing finances at home and abroad.
I have personally used Betterment for over four years and have nothing but good things to say. This is not a sponsored post nor is it an ad, I just highly recommend their services for saving money while traveling abroad!
By following these simple steps, you can make the most of your international travels without worrying about any extra costs associated with accessing your money. Hope this helps!
Disclaimer: The information provided in this article is for educational purposes only and should not be construed as financial advice. Always conduct your own research or consult with a financial professional before making any financial decisions. The methods and recommendations discussed here are based on personal experience and may not be suitable for everyone. The author and publisher are not responsible for any financial losses or damages that may result from following the advice in this article.
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