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Traveling abroad is an exciting opportunity to experience different cultures, explore new places, and make memories that will last a lifetime. But managing money while overseas can be a challenge, as there are numerous costs associated with international travel, including foreign transaction fees.
These fees can add up quickly and cause unexpected financial strain, so you need to be aware of them and plan ahead to save money. In this article, we’ll explore the best banks with no foreign transaction fees to help you to make the most of your time abroad without worrying about financial surprises. After all, nothing can ruin a vacation faster than an unexpected bill!
What are foreign transaction fees?
Foreign transaction fees are charges from banks or credit card companies for processing transactions in a currency other than your own. These fees typically range from 1% to 3% of the total transaction, and sometimes more.
They can add up quickly if you make a lot of international purchases. You should be aware of these fees before you make a purchase, so you can plan your spending accordingly.
Many banks and credit card companies offer foreign transaction fee waivers for their customers, so it pays to shop around and read the fine print. Knowing what you’re getting into can help you save a lot of money in the long run.
Why avoid foreign transaction fees?
Foreign transaction fees can have a significant toll on your finances, particularly if you’re a frequent traveler. These fees can quickly add up, potentially costing you hundreds of dollars in unnecessary charges.
Additionally, fees can vary significantly across different banks and credit cards, making it challenging to compare and choose the best option for your needs. What’s more, calculating foreign transaction fees can be a complex process, leaving you vulnerable to making mistakes that may result in overspending.
5 Best Debit Cards With No Foreign Transaction Fees
Chime is an online banking platform that prides itself on being fee-free. With Chime, you won’t have to worry about monthly fees, minimum balance fees, overdraft fees, or foreign transaction fees.
Additionally, Chime offers a unique feature called SpotMe, which provides fee-free overdrafts up to $200. Eligibility requirements apply.
Chime also offers easy access to cash through its network of more than 60,000 fee-free ATMs located at popular stores such as Walgreens, CVS, 7-Eleven, Target, and Circle K.
Plus, if you set up direct deposit with Chime, you can receive your paycheck up to 2 days earlier than you would with traditional banks.
Chime doesn’t require a credit check or use ChexSystems, so you can open an account without worrying about your credit or banking history.
Charles Schwab Bank has a great selection of financial products, including its High Yield Investor Checking account.
This is an ideal choice for frequent travelers, as it features a debit card free of foreign transaction fees and unlimited worldwide ATM fee rebates.
Additionally, the account offers an APY of 0.45% with no monthly fee or minimum balance requirement. The full-featured mobile app makes it easy to deposit and transfer funds, and you can even add the debit card to your mobile wallet for a secure and convenient payment option.
For those who need a credit card without foreign transaction fees, the American Express Platinum Card for Schwab is an ideal choice.
Despite its steep annual fee of $695, it offers an unlimited 1.5% cash back, statement credits on hotel and airline bookings, digital entertainment credits, and more. Plus, with travel notices, you can rest assured that your finances are secure while you’re away.
The Capital One 360 Checking account is an ideal choice for those seeking a no-fuss banking experience.
With no monthly maintenance fees, no overdraft fees, and no foreign transaction fees, you can be confident that you won’t be charged extra just to manage your funds. On top of that, you’ll have access to over 70,000 fee-free ATMs throughout the United States, so getting cash when you need it is never an issue.
Additionally, you can even add cash to your 360 Checking account at any CVS location. And with early direct deposit, you can get your money up to 2 days earlier than payday.
Capital One also offers some great credit cards which we will explore below.
With Varo, you don’t have to worry about monthly fees, minimum balance requirements, overdraft fees, foreign transaction fees, or credit checks, making it a hassle-free banking solution.
Plus, it offers access to over 55,000 fee-free Allpoint ATMs located at popular stores like Target, CVS, and Safeway, so you can get cash when you need it.
With Varo cards, you can even earn up to 6% cashback on select purchases to help you save, which is automatically transferred to your Varo Bank Account once you reach $5.
What’s more, direct deposit allows you to receive your paycheck up to 2 days earlier than with traditional banks. Varo Advance is another great advantage for those who need a quick loan – you can borrow up to $250 (starting at $20) with qualifying conditions.
Finally, Varo offers high APY rates on its savings account, with the potential to earn up to 5.00% APY – that’s more than 15 times the national average!
The HSBC Premier Checking account is a great choice for frequent travelers, as it has no foreign transaction fees and no fees when withdrawing from any HSBC bank or ATM worldwide.
Additionally, the HSBC Premier Debit World Mastercard card provides up to five rebates per month when withdrawing from non-HSBC ATMs in the U.S.
Although this premium checking account has a monthly fee of $50, this fee can be waived when you meet the qualifying criteria.
HSBC also offers a selection of credit cards with no foreign transaction fees, including the HSBC Premier Credit Card, which also has no annual fee.
Another great perk of being an HSBC Premier account holder is priority service and emergency financial support at HSBC locations across the street or around the globe.
Other benefits that come with this card include cash back offers, TSA precheck credit, complimentary Wi-Fi at select locations, and many more.
5 Best Credit Cards With No Foreign Transaction Fees
If you’re in the market for a top-notch travel credit card, the Chase Sapphire Preferred and Chase Sapphire Reserve are both outstanding picks.
These cards offer an array of advantageous features, from no foreign transaction fees to a generous sign-up bonus of 60,000 points.
Chase Ultimate Reward points are highly esteemed for their immense worth. They can be used to purchase free flights, hotels, rental cars, cashback, and a plethora of other items.
Redeeming these points is an incredibly rewarding experience that allows one to gain access to a world of luxuries and possibilities.
Plus, there are plenty of additional benefits, such as rental car insurance, trip cancellation and delay insurance, baggage delay reimbursement, lost luggage reimbursement, travel accident insurance, and purchase protection.
To top it off, you can even get a credit for the TSA PreCheck or Global Entry application fee.
With annual fees of $95 for the Preferred and $550 for the Reserve, these cards are an ideal option for the frequent traveler looking to maximize their rewards.
The Capital One VentureOne card is a great option for those looking for a travel rewards card with no annual or foreign transaction fees.
New cardholders can earn 40,000 bonus miles after spending $1,000 on purchases within the first 3 months of account opening.
You earn 1.25 miles for every dollar spent, and eligible purchases made through Capital One Travel will earn you five miles.
The card offers easy redemption options, with miles redeemable for travel through Capital One Travel or as a statement credit towards past travel purchases made elsewhere. Plus, rewards don’t expire for the life of the account.
If you’re looking for a credit card with no annual fee that also rewards you for your spending, the Discover it Cash Back Credit Card is a great choice.
With no foreign transaction fees, you can take your rewards on the go wherever your adventures take you. Earn 5% cash back at different places each quarter, like Amazon.com, grocery stores, restaurants, and gas stations, and an unlimited 1% cash back on all other purchases – with no need to activate offers.
Plus, Discover will match all the cash back you’ve earned at the end of your first year, so you can enjoy even more rewards. Redeem your cash back rewards any time, in any amount, with no expiration.
American Express offers two premium credit cards, the Platinum Card and the Gold Card, with a range of rewards and benefits for cardholders.
The Platinum Card from American Express offers 80,000 Membership Rewards points after spending $6,000 in the first 6 months.
You also get a $200 back in statement credits each year on Fine Hotels + Resorts or The Hotel Collection bookings, a $240 digital entertainment credit, $155 Walmart+ credit, $200 airline fee credit, and $200 Uber Cash. However, the card comes with a high annual fee of $695.
The American Express Gold Card, on the other hand, offers 60,000 Membership Rewards points after spending $4,000 in the first 6 months.
Additionally, you’ll get 4X points at restaurants, 3X points on flights booked directly with airlines or on amextravel.com, $120 Uber Cash, and $120 dining credit.
The annual fee for this card is $250. Both cards do not charge foreign transaction fees and require good to excellent credit for approval.
Bank of America is among the largest banks in the U.S., offering a wide selection of credit cards to suit different requirements.
A popular pick is the Bank of America Travel Rewards card, which is distinguished by its no foreign transaction fees. With this card, users gain 1.5 points for every dollar spent on all purchases, wherever, whenever.
Furthermore, the card provides a generous sign-up bonus of 25,000 points, a 0% introductory APR, and no annual fee, making it an affordable and rewarding option. For globetrotters, the no foreign transaction fees feature is especially attractive.
Choosing the Right Bank for You
Finding the right bank to help you save on foreign transaction fees requires careful consideration of several factors that align with your individual needs. Here are some factors you should consider when choosing a bank:
Factors to Consider
Travel frequency: Consider how often you travel and whether the bank’s policies support your travel habits. For frequent travelers, you should choose a bank that offers the most convenient services in your destination. A bank that provides global ATM networks and online access to your account can significantly ease your foreign transactions.
Type of card: You should also consider the type of card you need. If you’re looking for a debit card, choose a bank that provides a reliable network of ATMs, free withdrawals and no foreign transaction fees. For credit cards, you may want to choose one that offers the most rewarding points, no annual fee, and fraud protection policies.
Other features: Consider other features, such as the bank’s mobile app, customer service, overdraft policies, and security measures, before making your decision.
Comparison of the Best Banks
In this article, we’ve provided you with a list of the best banks that offer no foreign transaction fees. To choose the right bank for you, you should compare the features of each bank and match them with your needs. This comparison will help you to determine which bank offers the best services that align with your requirements.
To find the best bank that aligns with your individual needs, you can conduct extensive research, read reviews from other customers, and ask for recommendations from your friends or travel community. Don’t rush the process, take the time to evaluate and compare each bank’s features to make an informed decision.
In addition to avoiding foreign transaction fees, there are other travel fees to watch out for, such as ATM fees, currency conversion fees, and travel insurance. Budgeting for international travel and using rewards or cash back programs can also help you save money and maximize your spending power.
Bottom Line
In conclusion, managing your finances while overseas is crucial, and avoiding foreign transaction fees is an essential step to save money and stay in control of your spending. By considering the best banks with no foreign transaction fees, choosing the right bank for your needs, and being mindful of other travel fees, you can make the most of your international travel experiences.
