How to Save Money while Withdrawing Abroad
Foreign ATM charges worry travelers because they tend to be high. But the worst part comes when we calculate what we have spent on the trip and we get a surprise. This article provides tips on how to withdraw money abroad in a smart way.
Tips for successfully withdrawing money abroad
One of the disadvantages of going on vacation away from home is the dreaded charges. We usually encounter surcharges, both when paying with the card while shopping and when withdrawing money at the ATM. But how can we avoid commissions? What should we do?
To help you save money and pay as little as possible in commissions when you travel, there are several options:
In banks: The main banks apply a commission when buying foreign bank notes that can range from 1% to 3%. It is convenient, but it is an expensive option.
Cash at ATM: If you also withdraw money at the ATM, that 3% fee on the exchange rate can shoot up to 4 – 4.5% depending on the amount you withdraw. Beware of this!
With a debit card: This is one of the cheapest options. This is how you can exchange euros for pounds, dollars or other foreign currency. You simply have to use the card in the country where you are traveling when withdrawing money from ATMs or paying for a purchase.
Exchange houses: As an alternative to banks for currency exchange, there are exchange houses. They are not usually cheap, but they can get you out of more than one trouble and are convenient at the airport.
ATMs without commissions
Undoubtedly, one of the best options for withdrawing money abroad is to use commission-free ATMs. Do they really exist when we travel? Yes, they do. Traveling without commissions is possible if you have a card like that.
Many of such cards are totally free. And in exchange, you can make cash withdrawals at ATMs at no additional cost.
When traveling, always check the local currency. Ideally, you should carry some cash in the local currency, especially to make small payments or to get out of trouble if somewhere your card is not accepted or fails.
Also keep in mind that some countries are accustomed to cash, so you may be able to travel with more peace of mind. Also, if you carry enough money in the local currency and get it at a good exchange rate, you will really be saving money. It’s just a matter of doing the math.
Wallet cards are a great option for travel. This way, you don’t have to worry about losing your credit card. It’s a safe option for travel and you can recharge it as you make payments abroad.
Thanks to the wallet cards, the commissions will no longer scare you, because you will be able to know them every day in real time and thus make your calculations.
So, as you can see, there are many alternatives to foreign ATM fees. If you don’t want to deal with them, you can see that there are more options!
I am Nikesh Mehta, owner and writer of this site.
I’m an analytics and digital marketing professional and also love writing on finance and technology industry during my spare time. I’ve done online course in Financial Markets and Investment Strategy from Indian School of Business. I can be reached at [email protected] or LinkedIn profile.