Banking Tips For Overseas Travellers

Filed in Business by on August 17, 2016

Banking-tips-for-overseas-travellersTravelling overseas can be expensive; but with relevant knowledge, you can save some money by avoiding Automated Teller Machine fees. You can also get the best exchange rate as well as protection against fraud.

An online report by expertvagabond.com gives the following specific banking tips for travellers.

Avoid international bank fees: The best way to obtain local currency overseas is to withdraw it from an ATM. It is quick, easy, and you will get a good exchange rate. But you will be charged every time you withdraw money from a different bank’s ATM. Often both your bank and the bank that owns the ATM will charge you a fee.
Multiple sources for redundancy: Use three different accounts for safety.? International financial fraud is on the rise, and plenty of travel horror stories involve drained bank accounts. For example, an ATM can be compromised. Planning for worst-case scenarios is a smart thing to do. An ATM card can be stolen so; it is recommended to have more than one ATM account while you travel.
Travel rewards credit card: Another way to save money and provide some security while you travel is to carry a credit card. International exchange rates are cheapest when paying with a credit card, and it is a great backup to have in case of an emergency. Many cards also include basic travel, theft, and auto rental insurance.
Protect your cash: Cash is mostly used while travelling internationally because it is accepted everywhere. But the problem with cash is that it is not traceable, so if it is stolen, you will never see it again. Taking proper precautions when carrying cash is a must.
Exchange with travellers: While this is definately the cheapest way to exchange foreign currency, it is not something you will be able to do all the time. Usually when leaving or entering a new country, you will find fellow travellers heading in the opposite direction. This is a great opportunity to trade currencies with each other. There are zero fees involved, unless one of you cannot provide exact change.
Use a credit card: Credit cards will give you the best exchange rate slightly better than using the ATM. The problem is that you cannot use them everywhere.
ATM: Using your debit card to withdraw cash from the ATM is the next best thing to a credit card. Exchange rates are very competitive, and the ATMs are available all over the world. Insert the card from your home bank, and instantly receive local currency to use as cash. Exchanging money using the ATM is both super convenient, and relatively cheap.
Currency exchange booth: This is one of the worst options of exchanging your money. You will often see these places at airports or bus terminals. They offer terrible rates, and there is always a commission of some sort. Even if their sign says ‘No commissions’, the exchange rate they give is padded to make a tidy profit off your ignorance.
Money changers: If you think currency booths are bad, these guys can be even worse. You will find them hanging out around international land borders. Sometimes, it is an outright scam.
Always know the exchange rate for the country you are travelling to. Check online before you travel.

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