Best US Bank For RTW Travel?

I suppose if you cash a piddling $100 at a time then the transaction fee will assume more importance. But really, the transaction fee should be of no consequence whatsoever since you should not be using a bank that charges ANY transaction fee at all. There are plenty that don't even in the USA. So you should only have the exchange cost to worry about since it is much harder to find a financial institution that charges no exchange fee at all unless you live in the UK and can open a Nationwide account.

Accounts like the one described by germuno which require you to maintain a certain balance may be available in your part of the USA Nicole or Credit Unions are often a good place to look for low exchange fees.

By the way Germuno, as you are probably aware, some US banks either ignore or are given permission to ignore the Visa ban on charging an ATM fee on foreign card withdrawals. Well little Borrego Springs Bank with only 3 branches charges no ATM user fee on my Canadian or UK cards while the Wells Fargo ATM in town charges $3 on those same cards. Tells me a lot about Wells Fargo.

But really, the transaction fee should be of no consequence whatsoever since you should not be using a bank that charges ANY transaction fee at all.

Most US banks charge transaction fees for currency exchanges; those that do not are the exceptions, not the rule.

Most US banks also charge withdrawal fees. But as noted, most of these banks offer some accounts that do not charge these fees. These are generally interest-bearing checking accounts with minimum balance requirements; the basic accounts will not generally be free of fees.

Credit unions can also be a good option, for those who are eligible to join one, as can the smaller banks. However, their networks may not always work as well, and many of them lack 24-hour customer service, which can be a problem if you are having difficulties from another time zone. Smaller financial institutions have their advantages and disadvantages.

some US banks either ignore or are given permission to ignore the Visa ban on charging an ATM fee on foreign card withdrawals.

It is legal in thirteen states for banks to ignore the Cirrus and Plus rules against charging ATM fees to international customers. They are busy lobbying to change the rules in the 37 other states where the fee prohibitions continue to be enforced.

Over time, we can all expect ATM usage to become more expensive. In the beginning, Cirrus and Plus were driving the business in order to lower their costs and to increase their usage by customers, but over time, banks have turned to these transactions also as a source of revenue. But using an ATM will probably always be competitive compared to the old ways of changing money, assuming that you can keep your bank fees to a minimum.

Roadwarrior, while I agree that most big banks charge forex (over 1%) and foreign ATM fees, any bank that charges these fees is not customer-friendly, and I say this as someone who has worked in bank regulation for the past 3 years.

Credit unions and many internet and local banks do not charge these fees (and also have many fewer "trick" fees in general, particularly compared to that most odious of banks, Bank of America). A traveler overseas for a year with 20k in the bank is giving up about $1200 by using BofA instead of a credit union or internet bank (assuming BoA charges $5/3%/0% interest on the account, the credit union charges $0/0%/3% interest on the account, an average of 10k is in the account over the year, and the traveler goes to the ATM once a week for a withdrawal). That's six percent of the trip budget! Back in the pre-ATM days, there was nothing you could do, but in 2008, a little work on the front end pays off hugely over the course of a trip.

I think that I've been fairly clear: Getting an account with fee-free withdrawals is realistic, particularly if you have enough money to hit the minimum balance requirements that are fairly typical. It is easy to avoid accounts with $5 withdrawal fees.

It is also realistic to get a 1% exchange fee based upon the interbank rate. While 0% is possible, it is not always plausible, and I wouldn't lose sleep if you end up paying 1%. A 1% fee, combined with an account with no fees for withdrawals, is far less than the alternative of changing travelers checks or cash.

I would never suggest using B of A for anything. High fees and bad service, the worst of both worlds.

what the hell is the problem here...simply get a bank like first republic...go in & shake your banker's hand...plan for the worst scenario...

...there is no reason to pay more than 0%...& atm's are arguably the safest way to safeguard your money on the road...but absolutely the most convenient way to obtain it

...incidentally first republic also gives free notary service

i don't like paying even 1%...that's a lot of money in a year's time...call me cheap if you want...but i hate work & i like my beer & smoke

Wow, amazing food for thought everyone!!!! Thanks so much!!!!!!!

Germuno, your First Republic sounds great. Unfortunately, I just checked and they don't have any branches in my state (Georgia).

I'm going to pour through all of this advice with a fine-toothed comb. Now I at least really will understand what to ask the local banks about to find the best one.... Which is clearly NOT my current bank, seeing as I use Bank Of America right now (I will say though, they have been great to work with for my 'domestic' banking. And their alliance network in Fiji and New Zealand was great when I went there so I didn't have those extra fees there. But I obviously see that other places in the world they aren't so accomodating! And I have no idea what I was getting charged with exchange rates on my Fiji/NZ trip. I didn't even know to plan for stuff like when I went on that trip. )

Looks like it's time to get on the phone soon so I'm not doing this one at the last minute. This seems like it will be one of the "easier" parts of the advance planning I am doing (well at least it doesn't require making decisions about which countries I can live with NOT going to!).

Thanks again!!!

I use my Schwab Investor Checking account like #1 Bunglegirl suggested. They refund all transaction fees back to your account and their money market checking fund pays a very competitive interest rate (something BPagain forgot to mention.) You'll have to check on the exchange cost which I'm guessing is the difference between the official exchange rate and the one the bank gives you.

I think backpackers and budget travelers probably only take out around a thousand dollars at a time, so not paying the ATM charge is important

Check out Schwab It's a pretty good deal. think you need $2500US to open an account.

raisuli...is this a misprint ?...

I think backpackers and budget travelers probably only take out around a thousand dollars at a time