When you’re traveling internationally, it’s crucial to have a reliable banking option that lets you withdraw cash without facing high fees. Finding a bank that doesn’t charge foreign transaction fees refunds ATM fees. Offers with competitive exchange rates can greatly improve your financial situation while traveling. In this piece, we’ll look at the best American banks for taking out cash abroad, including both traditional and online banking choices.
Why Choose a Bank with No Foreign Transaction Fees?
Foreign transaction fees can accumulate fast when you use your credit or debit card overseas. These fees, usually calculated as a percentage of the transaction amount typically range from 1% to 3%. Some banks may also impose charges for currency conversion or ATM withdrawals in foreign countries. By selecting a bank with no foreign transaction fees you can save money. Avoid surprises on your credit card or bank statement.
Factors to Consider When Choosing a Bank for International Cash Withdrawals
Before we dive into the best banks for international cash withdrawals, it’s essential to consider a few factors that can impact your experience abroad. Here are some key factors to keep in mind:
1. Network of ATMs:
Look for banks that have a widespread network of in-network ATMs, both domestically and internationally. This will allow you to access cash easily without incurring additional fees from out-of-network ATM operators.
2. Exchange Rates:
Check the bank’s exchange rates to ensure that they offer competitive rates. It’s a good idea to compare rates with other financial institutions to ensure you’re getting the best deal.
3. Additional Fees:
While a bank may offer no foreign transaction fees, it’s important to review its fee schedule for other charges, such as monthly maintenance fees or overdraft fees. Make sure you understand all the potential fees associated with the account.
4. Online Banking Services:
Consider whether the bank offers online banking services or a mobile app that allows you to manage your account and track your transactions conveniently while traveling.
5. Customer Service:
Choose a bank with excellent customer service, especially if you frequently travel abroad. You’ll want to have access to support in case of any issues or questions regarding your account.
Now that we’ve established the key factors to consider let’s explore the best American banks for taking out cash abroad.
1. Charles Schwab Bank
Charles Schwab Bank is known for its investor-focused services, but it also offers a top-notch banking experience for international travelers. The Schwab Bank High Yield Investor Checking account is a standout option for those seeking a bank with no foreign transaction fees and unlimited ATM fee reimbursements worldwide. This means you can withdraw cash from any ATM without worrying about incurring fees from the ATM owner. Additionally, Charles Schwab Bank does not charge monthly maintenance fees or require a minimum balance, making it an attractive choice for frequent travelers.
Benefits of Charles Schwab Bank:
- No foreign transaction fees
- Unlimited ATM fee reimbursements worldwide
- No monthly maintenance fees or minimum balance requirements
- Competitive exchange rates
- Access to a wide range of investment options through Schwab brokerage accounts
2. Ally Bank
Ally Bank is an online bank that offers a range of financial products, including checking accounts, savings accounts, and CDs. While Ally Bank does not reimburse ATM fees, it does not charge foreign transaction fees, making it a good option for international cash withdrawals. Ally Bank also offers competitive interest rates on its accounts, making it an attractive choice for those looking to earn some extra money on their deposits.
Benefits of Ally Bank:
- No foreign transaction fees
- Competitive interest rates on savings accounts and CDs
- Access to a user-friendly online banking platform
- No monthly maintenance fees on checking accounts
- 24/7 customer support
3. Axos Bank
Axos Bank is an online bank that offers a range of banking products, including checking accounts, savings accounts, and CDs. While Axos Bank does not reimburse ATM fees, it does not charge foreign transaction fees, making it a good option for international cash withdrawals. Axos Bank also offers competitive interest rates on its accounts, making it an attractive choice for those looking to maximize their savings.
Benefits of Axos Bank:
- No foreign transaction fees
- Competitive interest rates on accounts
- Access to a user-friendly online banking platform
- No monthly maintenance fees on checking accounts
- 24/7 customer support
4. Bank of America
Bank of America is one of the largest banks in the United States and offers a range of banking products and services. While Bank of America does charge foreign transaction fees on its debit cards, it offers a convenient option for international cash withdrawals through its Global ATM Alliance. This alliance allows Bank of America customers to use partner ATMs worldwide without incurring additional fees. Additionally, Bank of America offers a variety of credit card options with no foreign transaction fees, making it a good choice for international travelers.
Benefits of Bank of America:
- Access to a vast network of partner ATMs worldwide
- No foreign transaction fees on select credit cards
- Wide range of banking products and services
- Online and mobile banking options
- 24/7 customer support
5. Alliant Credit Union
Alliant Credit Union is a member-owned financial cooperative that offers a range of banking products and services. While Alliant Credit Union does not have physical branches, it provides access to a vast network of ATMs through partnerships with other credit unions. This allows Alliant Credit Union members to withdraw cash without incurring additional fees at in-network ATMs worldwide. Alliant Credit Union also offers competitive interest rates on its accounts, making it a good choice for those looking to earn interest on their deposits.
Benefits of Alliant Credit Union:
- Access to a vast network of in-network ATMs worldwide
- No foreign transaction fees on select credit cards
- Competitive interest rates on accounts
- Online and mobile banking options
- 24/7 customer support
6. TD Bank
TD Bank is one of the largest banks in the United States and offers a range of banking products and services. While TD Bank does charge foreign transaction fees on its debit cards, it provides a convenient option for international cash withdrawals through its extensive network of ATMs in Canada and the United States. TD Bank customers can withdraw cash without incurring additional fees at these ATMs, making it a good choice for those traveling between the two countries.
Benefits of TD Bank:
- Extensive network of ATMs in Canada and the United States
- No additional fees for cash withdrawals at TD Bank ATMs
- Wide range of banking products and services
- Online and mobile banking options
- 24/7 customer support
Additional information
Before wrapping up our discussion on the best American banks for taking out cash abroad, it’s important to delve into some key considerations that can impact your banking experience while traveling internationally. These factors are crucial for any frequent traveler or anyone planning to use their bank account for international transactions.
Financial Institution: When choosing a bank for your international needs, consider the reputation and global presence of the financial institution. Major banks like Wells Fargo, US Bank, and Chase Bank are known for their extensive services, but don’t overlook credit unions like Alliant Credit Union, which can offer competitive rates and benefits.
Monthly Fees: Be aware of any monthly service fees or maintenance fees associated with your bank account. Some banks waive these fees if you maintain a minimum balance or meet certain criteria, such as monthly direct deposits.
Foreign Transactions: Understand the fees associated with foreign transactions, including currency conversion fees and foreign ATM fees. Look for banks that offer low or no fees for these transactions to save money.
Currency Conversion: Check the exchange rate offered by your bank for converting U.S. dollars to local currency. A favorable exchange rate can make a significant difference in the amount of money you receive when withdrawing cash abroad.
ATM Network: Consider the bank’s ATM network and whether it has partnerships with international ATMs. Access to a wide network can provide more convenient and cost-effective cash withdrawals.
Debit Card Purchases: Some banks offer benefits for using your debit card for purchases abroad, such as no foreign transaction fees or cash back on everyday purchases.
Additional Benefits: Look for additional benefits that may come with your account, such as ATM fee rebates, cash bonuses for new customers, or perks like travel insurance or airport lounge access.
Credit Score and Credit Card Information: If you’re considering a new credit card for international travel, be mindful of the impact on your credit score and ensure you understand the terms and conditions, including any annual fees.
By keeping these factors in mind and choosing the right bank for your international travel needs, you can enjoy a smoother and more cost-effective banking experience abroad. Whether you opt for a traditional bank like Wells Fargo or Chase Bank, an online bank like Ally or Axos, or a credit union like Alliant, make sure your financial institution aligns with your personal finance goals and travel habits.
Conclusion
When it comes to the best American banks for taking out cash abroad, choosing a bank that offers competitive exchange rates, no foreign transaction fees, and access to a wide network of ATMs is crucial. Charles Schwab Bank, Ally Bank, Axos Bank, Bank of America, Alliant Credit Union, and TD Bank are all excellent options for international cash withdrawals. Consider your personal banking needs, such as online banking services, interest rates, and customer support, when making your decision. With the right bank, you can enjoy your travels without worrying about excessive fees or unfavorable exchange rates.