Best Debit Cards for Travelers

Tomy - Everyday Finance
12 Jun 202308:04

TLDRThe speaker shares their experience using two top international debit cards during their two-year global travels. They highlight the Wise card for its multi-currency account, excellent exchange rates, low fees, and instant top-ups. The Charles Schwab debit card is praised for its ATM fee rebate, lack of minimum balance or monthly fees, and no foreign transaction fees. The combination of these cards offers a cost-effective and convenient solution for managing expenses while traveling internationally.

Takeaways

  • 🌍 The speaker has been traveling globally for two years and has identified top international debit cards for use abroad.
  • 💳 Regular debit cards often incur multiple fees including bank fees, ATM fees, and conversion rate fees during international transactions.
  • 💡 The speaker seeks to minimize fees while maintaining the convenience of withdrawing money from anywhere in the world.
  • 📌 The Wise card (formerly TransferWise) is highlighted for its multi-currency account feature, supporting over 50 different currencies.
  • 🔄 Wise card offers mid-market exchange rates with low fees and transparent pricing on transactions.
  • 🚀 The Wise card has no annual fees and allows instant top-ups, providing immediate access to funds at ATMs.
  • 🛡️ The Wise card's security features include instant locking and notifications in case of unauthorized usage.
  • 🏦 Charles Schwab debit card is recommended for its limited fee rebate on ATM withdrawals worldwide and lack of minimum balance or monthly fees.
  • 🔄 Charles Schwab card is used for planned ATM withdrawals with scheduled deposits, while the Wise card is preferred for impromptu withdrawals and credit card purchases.
  • 📈 Charles Schwab also offers an investor checking account with no minimum balance requirements, making it suitable for travelers.
  • 🌐 The combination of Wise and Charles Schwab debit cards is presented as an effective duo for managing expenses during international travel.

Q & A

  • What are the common fees associated with using a regular debit card abroad?

    -With a regular debit card abroad, you may incur fees from your own bank, the ATM used, and the bank that owns the ATM. Additionally, there might be a conversion rate fee with a markup applied by your bank.

  • How does the Wise card help to minimize fees while traveling internationally?

    -The Wise card is linked to a multi-currency account that allows you to hold over 50 different types of currencies and offers some of the best exchange rates. It converts at the mid-market rate and charges low fees, providing transparency by showing the exact fees for each transaction.

  • What is a key benefit of the Wise card in terms of exchange rates?

    -A key benefit of the Wise card is that it can convert currencies at mid-market exchange rates, which are the best possible rates, and charges low fees, making it cost-effective for international travelers.

  • How does the Wise card provide transparency regarding fees?

    -The Wise card shows the exact fees for each transaction, including the conversion rate and any additional fees, making it clear and easy for users to understand the costs involved in their transactions.

  • What feature of the Wise card makes it convenient for last-minute withdrawals?

    -The Wise card allows users to top up their account instantly via the mobile app, providing immediate access to funds when needed, which is particularly useful for last-minute withdrawals.

  • What security feature does the Wise card offer in case of loss or theft?

    -The Wise card allows users to lock their card through the app if it's lost or stolen. The card also sends notifications for each transaction, enabling users to quickly notice and report any unauthorized use.

  • How does the Charles Schwab debit card benefit travelers with its ATM fee rebate?

    -The Charles Schwab debit card offers a limited fee rebate from any ATM worldwide, refunding the fees charged by ATMs at the end of the month, which can save travelers money on withdrawal fees.

  • What are the requirements for obtaining the Charles Schwab debit card?

    -To obtain the Charles Schwab debit card, one must open an investment account and a Charles Schwab Investor Checking account. An initial deposit is required to order the debit card, but there is no minimum balance for the accounts.

  • How does the speaker use the Charles Schwab card for planned financial activities?

    -The speaker uses the Charles Schwab card for planned ATM withdrawals by scheduling deposits into the associated account every two weeks, ensuring the funds are available when needed for withdrawals.

  • Which card does the speaker recommend for unplanned or impromptu withdrawals?

    -The speaker recommends the Wise card for unplanned or impromptu withdrawals due to its ability to instantly top up the account, providing immediate access to funds.

  • What is the main advantage of using both the Wise and Charles Schwab cards together?

    -Using both cards together provides a combination of benefits such as low fees, transparency, instant top-ups, and ATM fee rebates, catering to different financial needs while traveling and offering better rates than many other options.

Outlines

00:00

🌍 Best International Debit Cards for Globetrotters

The speaker shares their experience traveling globally for two years, emphasizing the high fees associated with using regular debit cards abroad due to multiple charges from banks, ATM owners, and currency conversion markups. This led them to explore and eventually recommend two specific debit cards for minimizing fees while traveling. The first card discussed is the Wise (formerly TransferWise) card, notable for its neon green appearance, linked to a multi-currency account allowing the holding and easy conversion of over 50 currencies at competitive exchange rates with transparent, low fees. The speaker praises the Wise card for its no annual fees, instant top-up feature, and security measures such as immediate lock and unlock capabilities through an app, which proved useful when the card was lost in Colombia. To obtain a Wise card, one must create a multi-currency account and request the card, possibly incurring a small fee that is outweighed by its benefits. The speaker is currently in Casablanca, Morocco, demonstrating the card's effectiveness.

05:02

🏦 Charles Schwab Card: A Traveler's Financial Companion

The second card recommended is the Charles Schwab debit card, associated with a brokerage firm offering investment services. This card stands out for its unlimited ATM fee rebates worldwide, no minimum balance or monthly fees, and absence of foreign transaction fees on purchases and ATM withdrawals. Opening a Charles Schwab investor checking account is a prerequisite, which involves setting up an investment account, depositing funds, and ordering the debit card. The speaker uses both the Wise and Charles Schwab cards strategically: the former for impromptu withdrawals and credit card purchases due to its fast top-up feature, and the latter for planned withdrawals, leveraging its fee rebates. The combination of these two cards offers a comprehensive financial solution for international travelers. The speaker concludes by inviting viewers to explore more content about living expenses in various international cities, including Morocco, Argentina, and Guatemala, providing insights into the cost of living abroad.

Mindmap

Keywords

💡International debit cards

International debit cards are financial tools specifically designed for use outside one's home country. They offer the convenience of making purchases and withdrawals in foreign currencies without incurring high fees. In the video, the speaker discusses their personal use of such cards while traveling abroad, highlighting their importance for managing expenses during international travel.

💡Fees and charges

Fees and charges are the costs associated with using banking services, especially when dealing with transactions involving different currencies or countries. These can include bank fees, ATM fees, and conversion rate fees. In the context of the video, the speaker is looking for ways to minimize these fees while traveling to avoid being charged multiple times for the same transaction.

💡Multi-currency account

A multi-currency account is a type of bank account that allows individuals to hold and manage balances in multiple different currencies. This feature is particularly useful for frequent travelers or those dealing with international transactions, as it simplifies the process of converting currencies and can offer better exchange rates. In the video, the speaker praises the multi-currency account linked to their Wise card for enabling them to hold over 50 different types of currencies.

💡Exchange rates

Exchange rates are the ratios at which one currency can be exchanged for another. They are a crucial aspect of international finance and travel, as they determine the cost of converting one currency into another. The speaker in the video emphasizes the importance of getting the best possible exchange rates to save on transaction costs.

💡Transparency

Transparency in the context of banking and finance refers to the clear and open communication of fees, charges, and terms associated with financial products. It allows customers to understand exactly what they are paying for and makes it easier to budget and manage expenses. The speaker values the transparency of the Wise card, which shows the exact fees and conversion rates for each transaction.

💡Annual fees

Annual fees are charges that credit card or financial service providers assess on customers once every year to use their services. These fees can add up and become a significant expense, especially for frequent travelers. In the video, the speaker appreciates that the Wise card does not charge any annual fees, making it a more cost-effective option.

💡Top-up

A top-up refers to the process of adding funds to a prepaid card or account. In the context of the video, the speaker uses the term to describe the convenience of instantly adding money to their Wise card via their smartphone, which allows them to have immediate access to funds at an ATM.

💡Charles Schwab debit card

The Charles Schwab debit card is a financial product offered by Charles Schwab, a well-known discount broker. This card is linked to a checking account and offers benefits such as no foreign transaction fees and a limited fee rebate from any ATM worldwide. The speaker in the video uses this card for its specific benefits, particularly for planned ATM withdrawals.

💡Investor checking account

An investor checking account is a type of bank account offered by financial institutions that focus on investment services. It typically comes with a debit card and allows for the execution of regular checking account functions, such as making purchases and ATM withdrawals, in addition to investment activities. In the video, the speaker mentions opening an investor checking account with Charles Schwab to obtain the debit card.

💡Planned vs. impromptu withdrawals

Planned withdrawals refer to the scheduled extraction of funds with prior knowledge and preparation, while impromptu withdrawals are sudden and unplanned extractions of money. In the context of the video, the speaker uses the Charles Schwab card for planned withdrawals and the Wise card for impromptu situations, taking advantage of the different features offered by each card.

Highlights

The speaker has been traveling for about two years and has identified top international debit cards for use abroad.

Regular debit cards often incur multiple fees including bank fees, ATM fees, and conversion rate fees.

The search for a way to minimize fees led the speaker to two specific cards.

The first card mentioned is the Wise card, previously known as TransferWise.

Wise card is linked to a multi-currency account allowing users to hold over 50 different types of currencies.

Wise offers some of the best exchange rates and low fees, with complete transparency on costs.

The Wise card has no annual fees and allows for instant top-ups through the app.

Wise card provides immediate access to funds at ATMs with low conversion fees and clear labeling of all costs.

The card's security features include instant notifications and the ability to lock and report a lost or stolen card through the app.

The second card discussed is the Charles Schwab debit card, which is linked to a checking account with no minimum balance or monthly fees.

Charles Schwab offers a limited fee rebate from any ATM worldwide, refunded at the end of the month.

There are no foreign transaction fees on the Charles Schwab card for purchases or ATM withdrawals.

To get the Charles Schwab debit card, one must open an investment account and then a checking account, with an initial deposit required.

The speaker uses the Charles Schwab card for planned ATM withdrawals and the Wise card for credit card purchases and unplanned withdrawals.

The combination of Wise and Charles Schwab cards serves as an effective financial tool for international travel.

The speaker has traveled extensively, including to Argentina, Puerto Vallarta, Guatemala, Lomay, Togo, and is currently in Casablanca, Morocco.

The speaker has created a playlist documenting the cost of living in different international cities for a month.

The video aims to provide insights into the financial aspects of international travel and the practical use of specific debit cards.

Casual Browsing

Best Debit Cards for International Travel in 2023

2024-03-29 14:35:01

Best Travel Cards For Australians (Top 11 Debit Cards Compared) + Sign Up Bonus

2024-03-29 15:15:01

Top 5 Best Travel Cards | Credit Card & Debit Card For Travelling

2024-03-29 15:25:01

BEST UK Travel Cards in 2023: Credit & Debit Cards WITH NO HIDDEN FEES!

2024-03-29 15:30:01

The best travel cards to use overseas: Credit card vs Debit card vs Prepaid vs Smart

2024-03-29 15:15:01

The best travel cards UK (2023): Credit card vs Debit card vs Smart vs Prepaid to use overseas

2024-03-29 15:05:02