When you're traveling abroad, one of the most important things to consider is how to manage your finances. This includes finding ways to withdraw cash without getting hit with hefty fees. After all, ATM fees can quickly add up, eating into your travel budget.
Here are 9 expert tips to help you save money on ATM fees when you're abroad:
1. Choose "Decline Conversion" at the ATM
When you withdraw cash from an ATM abroad, you may be presented with the option to "Accept Conversion" or "Decline Conversion." The ATM's fixed exchange rate is often much higher than the market exchange rate, meaning you'll end up paying more in fees.
To avoid this, always choose "Decline Conversion." This will allow your bank to apply its own exchange rate, which is typically more favorable.
2. Choose to be charged in the local currency
When you're presented with the option to be charged in your home currency or the local currency, always choose the local currency. This will eliminate the hidden fees that are often associated with currency conversion.
3. Use ATM Fee Saver
The ATM Fee Saver app can help you find ATMs in your destination country that have no fees or very low fees. This can save you a significant amount of money on your ATM withdrawals.
4. Try 2-3 ATMs before withdrawing cash
If you can't use the ATM Fee Saver app, it's still worth trying 2-3 ATMs before withdrawing cash. In many countries, ATMs have different fees, so you may find a cheaper option if you shop around.
5. Use your own bank's ATM if it offers free withdrawals
Many global banks offer fee-free ATM withdrawals for their customers when they use the same bank's ATM. Check your bank's website to see if this is an option for you.
6. Get a fee-free, zero forex mark-up, or low-fee card for international travel
There are many credit cards and debit cards that offer special benefits for international travelers, including fee-free ATM withdrawals, no foreign transaction fees, and zero forex mark-up. Do your research to find the best card for your needs.
7. Use ATMs part of the Global ATM alliance or All Points Network
The Global ATM Alliance is a partnership among many banks in the world to remove ATM Fees for customers of all such banks. If your bank is a member, you can withdraw cash from another bank in this partnership for free. Similarly, All Points Network is an independent ATM network that has fee-free ATMs in US, UK, Mexico, Canada, Puerto Rico, and Australia.
8. Use bank ATMs, avoid independently operated ATMs
In some countries, you'll see two types of ATM owners: banks and Independent ATM Operators. Bank ATMs are branded with their names. ATMs of Independent Operators are usually branded with words like "free cash", "cash zone", "euronet", etc. Now unlike banks, Independent ATM operators earn only from the fees they charge for cash withdrawals. So while banks may or may not charge ATM fees to foreign card holders, Independent ATM operators will definitely charge you. They are known to trick foreign card holders into accepting high fees by using mysterious words and jargons on ATM screens. So do yourself a favor and avoid them!
9. Withdraw maximum amount in a single transaction
Typically ATMs have a per transaction limit, i.e., a limit on the amount of money you can withdraw in 1 cash withdrawal. In case where the ATM Fee is a fixed fee, you pay this fee irrespective of whether you withdraw a small amount or the entire amount of the transaction limit. So if you withdraw the maximum amount that the ATM offers you in a single withdrawal, you can save on ATM Fees. But note that there are some ATMs which will charge you an ATM Fee depending on how much you withdraw, in which case, withdrawing higher amounts will not give you the benefit. However, always withdraw the amount you are comfortable with and not necessarily because an ATM gives you an option to withdraw a higher amount.
By following these tips, you can save a significant amount of money on ATM fees when you're abroad. This will allow you to stretch your travel budget further and enjoy your trip more.
