How can you avoid high ATM fees overseas?

[CasualTraveler]

Bank of America does not officially list a partner bank in Taiwan for waiving ATM fees or currency conversions fees (see https://locators.bankofamerica.com/international.html). However, we came across a post on Forumosa.com (http://forumosa.com/taiwan/viewtopic.ph ... 1#p1580545) that said:

"BofA has no atm here. I have BofA and I just find it easy to take cash out at a chinatrust atm at 711s. Sure they charge me $5 usd but when i go to the states i just tell my banker and he gets the fees returned to me. Hope this helps."

Based on this, we went ahead and used the ATMs in two different 7-11 stores while in Taiwan. We were charged $5.00 per ATM transaction plus a 3% currency conversion fee. When we returned home to California, I called the Bank of America customer service line and requested that the charges be waived. I was told that China Trust, the bank that operates the ATMs we used, does not have a partner arrangement with Bank of America and the fees could not be waived. Being persistent, I called back and spoke to another agent and was told the same thing. I asked her to check with a supervisor. After five minutes on hold, she came and repeated that she could not waive the fees.

Not ready to give up, my wife went into our local branch and made the same request. This time the branch officer entered a claim case into the computer system. Within five days, all ATM and foreign transaction fees were removed from our account.

If I really need to get cash while travelling in Taiwan in the future, I will still consider using a 7-11 ATM. However, if you decide to do this, keep in mind that it may take a bit of effort to get the fees refunded. Probably best to skip the customer service call and just go straight to your local bank.

[Winston]

Falcon told me that if I put my B of A money into Charles Schwab, which has a partnership with B of A, then I can withdraw from it without ATM fees. Anyone know how that works? Is there any cost or risk with doing that? Isn't Charles Schwab an investment or stock brokerage company? I mean if you give them your money, wouldn't they put it in some mutual fund or stock? Falcon?

CasualTraveler,
Thanks for the link. The B of A international bank locator says that China Construction Bank in mainland China will not charge ATM fees? I think I've used that bank but it did charge me fees. Either way, they will still charge the 3 percent fee of the withdrawal right? I've been getting ATM fees in China of $5 and $9 for each transaction. One is the ATM flat fee and the other is the percentage. I withdraw 2000 RMB at a time, which is about 320 USD.

https://locators.bankofamerica.com/international.html

[droid]

Winston, I don't know how your stash stands, but you can get an HSBC Advance account, with a minimum $10,000 deposit.
They give you $350 as a new customer incentive, and there are tons of HSBC branches and ATMs worldwide, with no withdrawal fees.

http://hsbc.banklocationmaps.com/china

They even gave me a free HSBC mug lol.
I don't know how you could do this move from China though. Because your account, although "global" is still location specific.
Perhaps you could still do it over the phone. Or if you feel comfortable you could open a local China account and transfer some funds, i don't think China will have a bank run anytime soon or anything like that.

I was getting hammered by Chase in SAm with the $5 non-Chase ATM fees.

[MrMan]

It would be good if people posted how to transfer funds, etc. cheaply for all countries on this thread from time to time as a resource.

I had an HSBC account for a while in Jakarta. I don't know about getting US account HSBC money from the US without a fee. They'd have to convert it somehow if they allowed that.

I needed to wire some money from Jakarta to the US. One problem if you wire funds to some podunk bank in the sticks like I was doing is that no one can tell you what the fees will be unless you go through a bank that handles the international part of the transfer. HSBC is huge in Hong Kong and the UK and other parts of the world. But they also acquired a chain of banks in upstate New York. I opened an account in the US by mail, while living in Indonesia, and put $5 in it. Then I wired my Indonesian funds there. HSBC charged customers something like an eight of a percent and a fee. The fee may have been $35 or $50 or something like that. The good thing is you don't get some mystery $75 charge or $100 charge from some bank in between your bank overseas and your US bank that you couldn't predict beforehand. If you use HSBC, or, I assume, Citibank, they handle the international part, so you know how much you are paying.

If you want to be able to get money out of an ATM without a lot of fees, a lot of countries have decent rates for moneychangers to change dollars into the local currency. The US is awful about this, at least any place I've been. The exchange rate banks and money changers give is awful. In Indonesia, the gap between buy and sell can be very low.

Depending on what country you are going to, if you are going to be there for a while, you could just go to whatever bank has the most ATMs and doesn't charge a fee to withdraw and open a local account. Exchange US dollars for the local currency and put that in your account. Then you can take money out without carrying all your cash on hand for safety's sake. When you get ready to leave, withdraw funds and close your account, or if it is expensive to close your account, take all the money out and let them close it.

It may be too much of a hassle to do this if you don't know the local language, though. If you have enough money, HSBC or some other English language bank may be a good place to do this if they help with translation.

If you don't like to carry as much cash, you could take it a bit further by getting a debit card while you are there that you could use to pay for meals in restaurants that take credit cards.

[Winston]

Winston, I don't know how your stash stands, but you can get an HSBC Advance account, with a minimum $10,000 deposit.
They give you $350 as a new customer incentive, and there are tons of HSBC branches and ATMs worldwide, with no withdrawal fees.

http://hsbc.banklocationmaps.com/china

They even gave me a free HSBC mug lol.
I don't know how you could do this move from China though. Because your account, although "global" is still location specific.
Perhaps you could still do it over the phone. Or if you feel comfortable you could open a local China account and transfer some funds, i don't think China will have a bank run anytime soon or anything like that.

I was getting hammered by Chase in SAm with the $5 non-Chase ATM fees.

Can I open and HSBC account in the US? That way, I can transfer funds from B of A to HSBC a lot easier, by just writing a check right? Could I do that if I opened an HSBC account overseas as well?

Ethan_sg told me that you can open a bank account in China even without an ID, so it's easy for even a tourist to open one in China. Did you guys know that? Wow. What's to stop people from money laundering by opening different bank accounts in China?

[droid]

Can I open and HSBC account in the US? That way, I can transfer funds from B of A to HSBC a lot easier, by just writing a check right? Could I do that if I opened an HSBC account overseas as well?
Ethan_sg told me that you can open a bank account in China even without an ID, so it's easy for even a tourist to open one in China. Did you guys know that? Wow. What's to stop people from money laundering by opening different bank accounts in China?

Yeah I would think you can open the HSBC account remotely. A local branch in China should be able to help you, or at least direct you.
And like I said, then you can also open a local China account, and transfer funds from the us account to the local one.

To qualify for the $350, the deadline is November 20, and you also have to schedule three direct deposits either from your employer or from your current bank account, which is relatively easy to do.

I didn't know you could open an account over there without an ID, that's wild, you'd think with such a supposedly dictated economy that wouldn't be the case.
I guess it depends on the amounts too, if they see you moving 100 grand here and there then you'll be suspect.

[Rock]

Falcon told me that if I put my B of A money into Charles Schwab, which has a partnership with B of A, then I can withdraw from it without ATM fees. Anyone know how that works? Is there any cost or risk with doing that? Isn't Charles Schwab an investment or stock brokerage company? I mean if you give them your money, wouldn't they put it in some mutual fund or stock? Falcon?

CasualTraveler,
Thanks for the link. The B of A international bank locator says that China Construction Bank in mainland China will not charge ATM fees? I think I've used that bank but it did charge me fees. Either way, they will still charge the 3 percent fee of the withdrawal right? I've been getting ATM fees in China of $5 and $9 for each transaction. One is the ATM flat fee and the other is the percentage. I withdraw 2000 RMB at a time, which is about 320 USD.

https://locators.bankofamerica.com/international.html

Charles Schwab is a brokerage which means you have many more options for investing your money than with and commercial bank. If you want, you can keep your funds in cash or invest in money market funds or short term CDs. You can do wire transfers to overseas banks online. I've had a Schwab account for over 10 years and also have a BOA account. If I had to give up one, I would definitely keep the Schwab account. I only opened BOA to apply for a USA credit card and establish credit there. But Schwab is easier to deal with and the account is more flexible and practical for a perpetual expat like me.

[Falcon]

Winston, Uncle Google is your friend.

Type in keywords like "Schwab ATM fee free", and you get results like this:

http://content.schwab.com/m/q310/schwab ... 7C-02.html

Or Fidelity:

https://www.fidelity.com/cash-managemen ... t/overview
https://www.fidelity.com/cash-management/atm-debit-card

I've used my Fidelity ATM card for a few years now, and I have never been charged a single dollar by them, and have had every single cent of ATM fees reimbursed.

Now that leftover money could be put to good use feeding and schooling Angelo.

[Yohan]

Try Citibank, no fees anywhere in the world, no monthly acc keeping fees.
I used to get charged 5 bucks per withdrawal then I decided to switch.

Unfortunately Citibank is closing down here in Japan all retail banking services on 1st November 2015, in a few days and for always.
There will be no Citibank anymore in Japan.

All accounts/employees/branches/ATM etc. will be transferred to Sumitomo Trust.

Citibank sold also their Credit Card services in Japan. I think all Credit Card services will be transferred next year, date still unclear.

Banking fees etc. are still unclear when using Sumitomo Cash Card instead of Citibank Gold Card abroad in a few months in ATMs in Thailand and Philippines.

Of course this applies also for Citibank customers coming to Japan. There will be no Citibank services for foreign visitors anymore.

[Winston]

Rock and Falcon,
So how do I open an account with Charles Schwab? Do I have to visit their office? I saw a link to it in my B of A online control panel. Can B of A just transfer all my money to Charles Schwab if I ask them to?

Are there fees associated with Charles Schwab? What are the drawbacks?

Is Fidelity the same thing?

So Rock, Charles Schwab can work just like a bank account? I don't have to invest in stocks? CD's are way too low in yields to bother with.

[Sophia]

Banking overseas is more than just putting your card in an ATM. When you travel abroad, banking overseas involves knowing three things: how to avoid paying bank fees, eliminate foreign transaction charges, and get a good exchange rate. I know too many people who travel overseas and pay ATM fees and get hit with credit card transaction fees. There’s no need for it. You didn’t save up all this money in order to give it the banks, right? I know I didn’t. I want to keep it all for myself because every avoided fee is more money for food, drinks, and activities.

Eliminating ATM Fees

ATM fees can really add up. Let’s think about it. While you’re on the road, you will probably withdraw money from an ATM twice a week. Fees vary around the world, but on average you end up paying $5 USD per withdrawal. That is $10 per week, $40 per month, or $520 per year. Even if you only use the ATM half the time, that’s still $260 USD per year. Most travelers I know go to the ATM even more than twice a week, which only increases the amount in fees they pay. Why give banks money you need for travel? You did a lot of work saving your money, don’t waste it by giving it to a bank. Here are four ways to eliminate fees:

First, pick a bank in the Global ATM Network. This is a network of large banks that have come together and waived fees and allow for free ATM withdrawals. While they have the highest fees ($5 USD per withdrawal) for banks outside their network, by using partner ATMs you can avoid ATM charges.

Below is a list of major banks in this alliance:

Bank of America (United States)
Barclays (England, Wales, Spain, Portugal, Gibraltar and certain countries in Africa)
BNP Paribas (France, Ukraine)
China Construction Bank (China; Bank of America card holders only.)
Deutsche Bank (Germany, Poland, Czech Republic, Spain, Portugal and Italy)
Banca Nazionale del Lavoro (Italy)
Santander Serfin (Mexico; Bank of America card holders only.)
Scotiabank (Canada, Caribbean, Peru, Chile and Mexico)
Westpac (Australia, New Zealand, Fiji, Vanuatu, Cook Islands, Samoa, Tonga, Papua New Guinea, and Solomon Islands)
ABSA (South Africa)
UkrSibbank (Ukraine)

Be sure to check with your local bank on specific coverage areas. There are some exceptions i.e. if you use your Barclays card in one country, there might not be a fee but in another, there is a fee. Double check before you go! Note: Bank of America charges a 3% foreign transaction fee on all withdrawals not in USD, though in Mexico you can use Santander to avoid the fee.

Secondly, if you are a US resident, the best bank to use is Charles Schwab. Why? Charles Schwab has no fees and reimburses all your ATM fees at the end of each month. You will need to open a high yield checking account in order to qualify, but there is no minimum deposit required and no monthly service fee. Their ATM card can be used in any bank machine around the world, and you’ll never pay a fee. This is my primary bank card. Since getting it, I’ve avoided all ATM fees. It’s saved me hundreds per year.

Third, get a low fee card. I use HSBC as my back up because HSBC has ATMs all over the world and charges only $2.50 USD per ATM transaction when you use a non-HSBC ATM. While it’s not as good as zero, its still better than what a lot of other banks charge. Additionally, Capital One doesn’t charge any withdrawal fees, but you do have to pay any fees charged by the local bank.

Finally, ask your local bank or credit union. Not charging ATM fees has become a widespread practice over the last few years so make sure to ask your local bank.

Thanks,
Stunited

[Winston]

Falcon and Rock,
Even if I get a Charles Schwab account and don't get charged ATM fees, still I will get charged fees by the foreign ATM I am using right? Remember that there are two ATM fees abroad. One is charged by your bank and is a percentage of your withdrawal. The other is charged by the bank that owns the ATM you are using. So Charles Schwab and HSBC will only waive the fee from them, but it can't waive the fee from the foreign ATM I'm using right? This means that I will still have a fee of 5 or 7 dollars right? Any way to avoid that? Or would both fees be waived?

[Falcon]

Falcon and Rock,
Even if I get a Charles Schwab account and don't get charged ATM fees, still I will get charged fees by the foreign ATM I am using right? Remember that there are two ATM fees abroad. One is charged by your bank and is a percentage of your withdrawal. The other is charged by the bank that owns the ATM you are using. So Charles Schwab and HSBC will only waive the fee from them, but it can't waive the fee from the foreign ATM I'm using right? This means that I will still have a fee of 5 or 7 dollars right? Any way to avoid that? Or would both fees be waived?

Get Fidelity. Both ATM fees will be waived. This means they actually PAY your ATM fees.

[Yohan]

Citibank(Japan) was a good place for foreigners living in Japan, with very moderate fees and linked worldwide.

It closed done this month forever, despite they always made a moderate profit, somewhat a strange policy by a foreign bank. All 1600 employees and all accounts were taken over by SumitomoTrust. The takeover was done very professional by the Japanese. However the direct banking link between European banks and Japanese banks for easy money transfer is now gone.

Before I paid only about USD 20,- for transferring money from my account in Europe to Japan, this month they charged me USD 100,-.
I have to look now for another way to transfer money, maybe to collect it in Europe and later on to send it in one big sum to Japan or something like that.

The next which will close done for always is Citicard. All credit-card services in Japan will also be sold to Japanese companies, likely also to SumitomoTrust or other Sumitomo related companies.

In future there will be no Citibank or Citi-Creditcard Service in Japan. Ridiculous, it really shows USA is going more and more down.

Still checking it out.

[Winston]

Announcement:

I found an easy way to avoid the high ATM fees that you get charged with nowadays when you withdraw from a US bank overseas. Remember I told you all before that you could send money to the Philippines from your bank or credit card using Remitly.com? Well the thing is, you can send money to yourself too! I just tried it and it worked. There are no fees but the exchange rate is about 1 peso lower than the market rate. So for example if the market rate is 46 pesos per dollar, then the rate that Remitly gives you would be 45 pesos per dollar. So if you sent 200 dollars to yourself, for example, the fee would essentially be 200 pesos, which is about 4 dollars only. That's a lot less than the 15 dollar ATM fees I've been getting charged with, which are comprised of BOTH the flat foreign bank ATM fee and a percentage of the withdrawn amount charged by my US bank.

Anyway, here's my referral link on Remitly for you to click and sign up at. If you send at least $100 on your first transaction, you will get a $40 gift card which you can use at Walmart, Target or Amazon.com. And I will get a $10 credit too.

http://remit.ly/@1yey1ai