Best Debit Cards for International Travel in 2023
TLDRThe video script discusses the optimal debit cards for use while traveling abroad, emphasizing those that waive foreign transaction fees and ATM charges. It recommends the Betterment Checking, Schwab Bank Investor Checking, and M1 Checking accounts, highlighting their benefits such as fee reimbursements and interest earnings. The video also touches on the importance of carrying some cash and the advantages of using ATMs over currency exchange services at airports.
Takeaways
- 💳 Use credit cards without foreign transaction fees for spending abroad, such as the Capital One Venture X card.
- 🍴 Consider using the built rewards card or Amex Gold for restaurant expenses when traveling.
- 💵 Carry some cash as a last resort and exchange it into local currency when necessary.
- 🎒 Keep a small amount of cash in a secure place like a secret pocket in your backpack for emergencies.
- 🏧 ATM cash withdrawals are generally better than exchanging cash at the airport due to better exchange rates.
- 💳 Look for debit cards that reimburse local ATM fees and foreign transaction fees to avoid extra costs.
- 📈 Check reliable sources like Google, Bloomberg, or xc.com for current currency exchange rates.
- 🏦 Betterment Checking offers no fees on ATM and foreign transactions, and their savings account pays a competitive interest rate.
- 🦅 Schwab Bank Investor Checking provides unlimited ATM fee rebates worldwide with no foreign transaction fees and pays interest on your checking balance.
- 🔢 M1 Checking has been discontinued, but there are other banks that offer similar benefits, like TIAA, Alliant Credit Union, and CIT Bank.
- 🏦 NBKC Bank may reimburse foreign ATM fees up to $12 per month and offers a high APY on their Everything Account.
Q & A
What is the primary factor to consider when choosing a debit card for traveling abroad?
-The primary factor to consider is the absence of foreign transaction fees and ATM fees, ensuring that the card will reimburse any fees charged by local ATMs.
Which debit card is recommended for its lack of foreign transaction fees and ATM fee reimbursement?
-Betterment Checking is recommended as it automatically reimburses both ATM fees and foreign fees without any charges.
What benefit does the Schwab Bank Investor Checking account offer in addition to unlimited ATM fee rebates worldwide?
-The Schwab Bank Investor Checking account offers an interest rate of 0.45% on the checking account balance, allowing travelers to earn interest on their accessible funds.
What was the notable change regarding the M1 Checking account mentioned in the script?
-The M1 Checking account was discontinued after the video was recorded, and the speaker had to research alternative banks with similar benefits.
Which bank mentioned in the script offers a high-interest savings account with an impressive rate?
-Betterment offers a high-yield savings account that is currently paying 4.5%, which is near the top of the rates available.
What are the benefits of nbkc Bank's Everything Account as mentioned in the video?
-The nbkc Bank's Everything Account pays 1.5% APY on the entire balance, both checking and savings, and allows users to save for individual goals.
Why is it not always advisable to exchange cash at the airport?
-Exchanging cash at the airport is not advisable because the rates are typically less favorable compared to withdrawing money from an ATM, which often provides a better exchange rate.
What is a recommended strategy for carrying cash while traveling abroad?
-It is recommended to bring a small amount of dollars as a last resort and exchange them into local currency if necessary, preferably not at the airport.
How can travelers ensure they get the best exchange rate when using a debit card abroad?
-Travelers can ensure the best exchange rate by using a debit card that reimburses ATM fees and foreign transaction fees, and by checking the current rates online, such as on Google or Bloomberg.
What are the advantages of using a debit card that doesn't charge fees for foreign transactions and ATM withdrawals?
-The advantages include avoiding additional costs, getting the market exchange rate without extra fees, and the convenience of not having to carry large amounts of cash.
What is the recommended approach for someone who is unsure about the availability of ATM fee reimbursement at a specific bank?
-The recommended approach is to open an account and test the bank's ATM fee reimbursement policy personally, as was suggested for nbkc Bank.
Outlines
💳 Best Debit Cards for International Travel
The paragraph discusses the advantages of using debit cards that do not charge foreign transaction fees while traveling abroad. It highlights the Capital One Venture X card for general spending, the built rewards card, and the Amex Gold for restaurant expenses. It also mentions the necessity of carrying cash in certain situations and the benefits of using ATMs over airport currency exchanges. The focus is on three debit cards: Betterment Checking, Schwab Bank Investor Checking, and M1 Checking, which offer fee-free cash withdrawals and additional benefits such as high-interest savings accounts and ATM fee reimbursements.
Mindmap
Keywords
💡debit cards
💡foreign transaction fee
💡ATM fees
💡currency exchange
💡Betterment Checking
💡Schwab Bank Investor Checking
💡M1 Checking
💡TIAA Bank
💡Alliant Credit Union
💡CIT Bank
💡nbkc Bank
Highlights
Using a debit card without foreign transaction fees is recommended for traveling abroad.
Capital One Venture X card is suggested for spending without incurring foreign transaction fees.
American Express (Amex) Gold card is ideal for restaurant spending.
Carrying cash as a last resort is advised, especially US dollars.
Airport currency exchanges are not as favorable as ATM withdrawals without fees.
Debit cards can reimburse local ATM fees and foreign transaction fees.
Betterment Checking offers reimbursement of ATM and foreign fees with no interest paid on the checking account, but a 4.5% APY on the savings account.
Schwab Bank Investor Checking provides unlimited ATM fee rebates worldwide and 0.45% interest on the checking account balance.
M1 Checking was discontinuing its service, but alternatives like TIAA, Alliant Credit Union, and CIT Bank offer limited reimbursements.
NBKC Bank may reimburse foreign ATM fees up to $12 per month and offers 1.5% APY on both checking and savings balances.
NBKC Bank's Everything Account allows for individual goal savings in addition to the high interest rate.
For more information on the best credit cards for abroad spending, refer to the video mentioned.
A list of favorite banks for the year 2023 is provided in another video.
Travelers should consider the benefits and fees associated with different debit and credit card options for international spending.
It's important to research and understand the fee structures of financial institutions when planning for international travel.
The use of technology and online resources, such as Google and Bloomberg, can help travelers get the best currency exchange rates.
Having a backup plan for cash transactions can prevent potential issues while traveling in foreign countries.