When you’re planning a big trip, moving overseas or going location independent, it can be easy to focus on the exciting parts of your impending adventure and forget about the boring bits like banking – but this is one area where it definitely pays to be organised (pardon the pun!) as it’s your hard-earned cash at stake.
Luckily, with some planning and research you can easily organise your money in the best way – whether that’s avoiding cash machine fees or figuring out which bank to open an account with abroad. And if your plan is to travel and have the freedom to work from anywhere in the world, then you’ll probably be looking for a mixture of both!
Opening A Bank Account Abroad
Depending on where you are moving to, the process of opening a bank account can differ widely – in some countries it will be as simple as walking into a bank with some ID, and in others you will need to either wait until you have been in the country for a few months, or use an agent to help you.
Generally, in the US, Australia it is easy to open an account provided you have ID and a deposit amount (usually around $100) while in the UK and some Asian countries it can be hit and miss, so you may want to use an agent for this – I would recommend 1st Contact in the UK – I have used them and they helped me to open an account within days of arriving. Before you move do your research and find out which will be the best method for you.
It goes without saying that if you’re moving abroad then you’ll also probably be doing a fair amount of travel, so it pays to research your bank before hand and go with one that offers the lowest or no cash machine fees. There are also banks all over the world who have ‘partnerships’ with banks in other countries, so if you bank with one of these you can really limit the amount of fees you’ll pay when on the road.
Here is a list to get started – for the specifics on each as always do your research before you commit!
Worldwide
HSBC – If you have a premier account here then you won’t pay cash machine fees anywhere in the world – a great option if you’re planning long term travel.
North America
Bank Of America
Capital One – Free overseas cash machine transactions.
South America
Santander Serfin
Scotiabank
Europe
Barclays
BNP Paribas
Deutsche Bank
Asia/Australia
China Construction Bank
Westpac
Africa
Barclays
ABSA
Banking While Travelling
If you are using an account with any of the above banks then hopefully this will eliminate most of the international transaction fees you will have to pay and therefore leave more money in your pocket for travel. This is a huge part of your travel money woes taken care of, but there are still some things you need to keep in mind when you’re on the road and managing your money.
Don’t Withdraw Huge Amounts
A lot of people advocate withdrawing large sums of money as a way to reduce fees, but if you are robbed or lose this then that’s your money gone. I tend to withdrawal enough for 2-3 days, but if you do this make sure you separate your money and leave some in your wallet and some wrapped up in paper or inside a book in your suitcase or backpack – that way if you get robbed you are less likely to lose the lot.
Where Possible, Use Credit
Paying on credit card means you wont be paying a withdrawal fee, and most cards also offer a great exchange rate which means less charges overall.
Don’t Use Online Banking On Shared Computers
You may think that your bank account would never be able to be hacked into, but trust me, it happens – I had money stolen from my account once after returning from a trip, and it was only pure luck that I noticed it and reported it before my whole account was cleared.
These days most people travel with smart phones or laptops, which is a lot safer than public computers, but always be mindful or who is watching and whether you are on a secure connection.
Don’t Buy Or Exchange Travel Money At the Airport
The exchange rates at airports are notoriously bad, so instead exchange your cash in your next city or town.
Happy banking!
Photo Credits – Thanks to Roland Tanglao and Andres Rueda (Attribution License)
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As someone who’s used Bank of America for years, I STRONGLY recommend against using them while traveling. They charge exorbitant fees for using ATMs that aren’t theirs, especially abroad, and their accounts tend to have monthly maintenance fees if you don’t get direct deposit.
The only American banks–besides a lot of credit unions–that don’t charge foreign transaction fees and refund ATM fees while traveling are Schwab, First Republic, and Capital One (and I’m pretty sure that’s only their online banking that refunds ATM fees). At least, those are the only ones that I’ve seen as I’ve been researching banks!
Hi Kat, thanks for this great info, I had no idea Bank Of America wasn’t great for travellers. I’ll update my post! : )
I’ve found that Charles Schwab offers a checking account that comes with a debit /ATM card and that all foreign ATM fees are refunded to your account within 30 days. We used it when we traveled to the U.K and it worked great. Just thought I would share the tip to help others save money.
Larry
Thanks Larry!