Last week I wrote a tip titled: Should You Exchange Money Before Your Trip to Europe? Here’s What to Do. I posted that I almost always use a credit card with no foreign transaction fees and pay either directly or via Apple Pay. But I also always have small Euro banknotes to use at markets, public transportation or for tips in case I can’t use my credit card. When I do use an ATM I try to use one that is affiliated with my bank so it doesn’t have any fees.
However, I did learn a trick from a reader (thanks, Marilyn B!) who commented on the post with: “In 2018 we visited Denmark and Sweden on a cruise. Neither used the Euro and we never had a need for the local currency. Everything was paid by credit card. On a cruise in 2023, we again visited Denmark and Sweden as well as Norway, also not on the Euro, and again never a need for local currency. The same was true for our visits to the UK. We would withdraw about 40 or 50 Pounds and be hard pressed to spend it. In the Euro countries, we do make a small withdrawal from a bank ATM, but we are finding less and less need for cash anywhere. Even in Rome a couple of years ago we could pay for a 2 Euro gelato with a card. This in a country that was famous for its cash-oriented society. The best deal is to open a checking account with Charles Schwab Bank, done online. No fees for the account and they reimburse ATM fees worldwide. This is popular advice from many savvy travelers as the best way to deal with ATMs overseas.”
Marilyn appears to be right because I’ve seen multiple comments from readers and other travel experts mention Charles Schwab including my friend and colleague Matt Kepnes, aka Nomadic Matt. He wrote on his site: “In my opinion, the best U.S. bank is Charles Schwab. While Charles Schwab doesn’t have deals with any banks overseas like those mentioned above, they don’t charge any ATM fees and will reimburse any ATM fees from other institutions at the end of each month. You will need to open an individual checking account to qualify, but there is no minimum deposit required and no monthly service fee. You’ll never pay a fee with Charles Schwab and their ATM card can be used in any bank machine around the world. If there isn’t a branch near you, you can open an account online by going to their website. To me, this is the current BEST ATM card to have. I never ever think about fees because of it.”
So if you do plan on taking cash out multiple times from an overseas ATM and don’t want to get hit with fees (who does?) then look into getting an account with Charles Schwab.
Regardless if you get one or not, just always be sure to choose to be charged in the local currency and not U.S. Dollars. If you pick USD, you’ll get hit with a terrible conversion rate (called Dynamic Currency Conversion).
