US Banking Advice? for Long Haul Vagabonding

Best advice? Keep it simple.

My Arizona Credit Union - which I joined over 30 years ago offers everything I need and I have lived overseas continuously since 1989.

All my web income is EFTed to that account - or to my PayPal account and I can take money directly from the CU to PayPal.

Also have a brokerage account with Fidelity - and money can move from there to my CU back and forth no charges, no problems.

My CU account does have a minimum - I think it is US$5. I almost never use the ATM to withdraw money - I just keep an account here in Thailand and wire money in bulk when I need it to minimize the transfer fees (US$35).

Look into local credit unions and other small banks. Almost everyone is online these days. As soon as you start talking overseas accounts etc - people start charging money, but often the little banks and credit unions don't - and - as a little customer, you'll get FAR better service than at a bank for the Big Boys where they would prefer that you have a million or two before you can play.

#1 issue? Keep it simple.

Just my opinion.

Keep it simple.
Atm may cost $5 every time. But its mugger insurance.
I live in Spain. I transfered bucks a la Wells Fargo to my Spanish account, till I figued out what I get for my money.

Use atmz that chatge no fee at overseas end. Like going gambling. "Never carry more cash on you, than you can afford to lose."
And someone can steal at hostels, on trains,boats........
They can't get at it if its at Wells F till you need it.

I deposit money in my Spanish bank from the atm outside. Then hand carry to the teller.
Sounds silly but its simpler and cheaper than the $35 for transfer. That's the same rate as Western Union too.

Banks always ghaver the best exchange rates

Don't change money with some dude on the street. You may get short changed or bogus bills.

I like the end part of #1's suggestion.
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PARADIGMS ARE FOR PUPPETS.

Have you worked one way on criuse liners ? I worked for two years on Swedish cargo ships, back in da 60's, for that reason.

And table waiting skills save us vagabond's asses. Portable gig.

My condolences on using Wells Fargo--they are one of the worst for fees, and surely you can do better. However, looking at your wish list, I can tell you that you will NOT find any US-based institution (nor anywhere else) that will give you all that. Even credit unions are increasingly charging fees, especially if you are not a long-standing customer. So, you'll need to prioritize your criteria and then look at additional options. Here's my thinking on this:

1) Deposits via ATM, in-person, or by mail. Most banks offer this without charge. In your situation, I would deprioritize the in-person requirement, as you'll find little use for it once you are "on the road." Make sure they have a reliable bank-by-mail, as this will probably be your most frequent method. This opens up online banks without bricks-and-mortar branches as options for you.

2) Online payment of credit cards/bills. Absolutely a requirement for long term travel. Fortunately, most traditional and online banks do this and most do it without charge, though you may have to do a quick online setup to get it functional. Ideally, you'll have your own laptop while on the road for security reasons. If not, be very, very careful about where and how you do online banking.
3) No minimum balance, no monthly fees. These fees can eat you up more than the ATM fees, so this should be a priority. Most banks have different types of accounts, some of which have this, some don't. Most of the decent interest-bearing accounts do.

4) High interest bearing. Truthfully, for a reasonably small amount of money like you are talking about, I would SCRAP this as a priority--the small amount of interest you'd make isn't worth it. If you ever more cash than you need for operating and living expenses, it's better to open a separate parking place (like a high-interest money market fund) for that cash.
5) No ATM fees (at least from home bank). This is desirable but if you can't manage it, try to find a bank that only charges $2.00 or $3.00 per transaction. And read the fine print about what the benchmark their exchange rates at--some banks will try to be sneaky and add an additional % on to the standard Interbank rate, which is then buried in a more unfavorable rate. This can outstrip fees! Usually, if you use the foreign ATM's of a US-based bank (like a Citibank, HSBC USA, Bank of America etc.), you will not be charged fees, but their other costs/requirements may not be worth that. Also, most large banks have what they call "foreign correspondent" banks, which is vaguely what Airline Alliances are in the banking world. Often you can use the correspondent bank's ATM's for free, or get rebated from your home bank. For your candidate institutions, find out who, if any, their correspondent banks are and which countries. I wouldn't make this the definitive priority, but it might tip the choice in one direction or another if other parameters are equal. Your ATM card should be affiliated with one of the big networks like Cirrus, Maestro, etc. to ensure worldwide use, which of course you already know.

6) Free international transfers. I assume you mean bank-to-bank wire transfers. Forget it, you won't get this unless you are a high-balance Premium or Premier bank customer with a lot of assets or deposits tied up with that Bank. This is very costly and should be used only for larger amounts of funds (upper 4 figures or greater). Also, due to international money-laundering regulations, the ability to initiate a transfer online, by phone, or by fax must normally be set up ahead of time and a bunch of forms and waivers have to be filled out. Make sure you specifically ask for this, and do the setup, when you set up the account. Best thing you can do on this is to find a bank that charges a flat fee regardless of amount (i.e. doesn't tack on a %). And minimize use of this method unless absolutely necessary.

As for the three choices you already presented: I think you should re-check the Schwab bank account, as I think that deal (which is pretty good) is only available when you open up a connected brokerage account with them--which may have you scrapping that option. Citibank has a lot of branches worldwide but has lots of complaints--this is common to almost all of the big banks like Chase, BOA, etc. However, they may be still be an option. Be aware that Citibank India, etc. is not the same bank as Citibank USA or elsewhere--they are affiliated but legally different organizational entities. This is the case with all banks sharing the same nameplate--they have to be individually chartered in each country and are subject to local regulations. However, it's worth asking "what ifs" like your deposit scenario, when evaluating the various banks, and if that answer is favorable to your needs, bumping up the institution in your rankings. ING Direct I don't know. Because the online operations of the bank will be your lifeline, try to find some user comments/reviews on the online banking function specifically (website ease of use and reliability, technical support and responsiveness, etc.). Nothing worse than having your money trapped and you can't get at it!

Thanks everyone for the ideas, advice, information, and feedback!

gawkabout... I love your method for transferring money to foreign bank accounts by withdrawing money from the atm and taking it inside! Brilliant. No, I've never done the cruise ship thing! brilliant idea though! I found some temp english teaching jobs which i may check out (http://www.tefltemp.com/).

And jiejie, wow! thanks for the detailed response and good suggestions re: priorities. Brilliant!

You said "And read the fine print about what the benchmark their exchange rates at--some banks will try to be sneaky and add an additional % on to the standard Interbank rate, which is then buried in a more unfavorable rate. This can outstrip fees!"

How do I find that benchmark? I haven't run across that term. I have found some compiled list of banks and the additional % they charge on the ATM withdrawals or credit card purchases. Like Ingdirect says they "may" charge up to 2% on non-[their system] atm withdrawals in foreign countries. And from what I understand Citibank will implement a 3% charge on all foreign atm use.

1) How do I find the exchange rate banks use for ATMs? do I contact the bank and just ask their benchmark for foreign exhange?

Yes, I checked out the Schwab account and they do require a brokerage acct be set up with the checking, but there is no minimum balance and you don't have to use it. They also said I could make non-cash (i.e. check, cashier check, etc.) deposits via their brokerage offices.

The HSBC say they reimburse atm fees, and can make deposit via atm. I need to look over their site again, because I was sure last week I found a fee page that listed a fee for anytime your acct drops below a minimum.

I'm leaning away from the Citibank at the moment...at least for foreign atm use because it appears they start charging 2% at the end of this month.

UFBDirect was recommended in another travel forum.

Checked into credit unions and haven't found anything in Delaware that has outstandingly low fees. Plus seems like I can easy get 3-4% interest with any of these other banks I'm looking for. And good online service.

I am thinking of maybe having two banks, since seems no minimums for some of these... maybe schwab for foreign atm use and citibank or hsbc for deposits. I think hsbc has paperless checks also, which was the thing i liked about ingdirect; also ingdirect is right up front about the charges/fees. Also I read it was a good idea to have two atm cards in case one fails at some location. And whatever I do is going to be better than WellsFargo which pays less than 1% interest and charges me so much in fees! In Citibank, I'd at least break even!

Anyways, I will take another round of research into transaction times, online service reputability.... and see what i come up with!

2) What would you consider the major atm servers? cirrus, maestro. i know... are there a few others?

3) How easy is it to open bank accounts in foreign countries, like Thailand or India?

Oh, these are some links i found.. not sure how up to date... on foreign atm charges.
http://www.travelfinances.com/directory/index.php/citigroup-debit-card-atm-foreign-transaction-fees/</a>

http://www.travelfinances.com/Services/debitcard-conversion-fee-comparison.htm</a>

http://www.bankrate.com/brm/news/cc/20050624b1.asp</a>

It appears ChaseOne is the best credit card to have for foreign use as they appear not to charge any extra fees. I'm going to apply for one next chance I get.

Also found this site on green/responsible finances:
http://www.coopamerica.org/pubs/realmoney/articles/creditcards.cfm</a>

I bank with a US credit union and ING Direct. I also have 403b retirement accounts with Fidelity. I can easily transfer funds for free between these accounts, pay credit card and other bill balances, and make inquiries online. Customer service reps have been very responsive and prompt at resolving all issues. I don't pay any monthly fees or have to maintain minimum balances. My credit union does not charge me any fees for withdrawing from an out of network bank's ATM.

I have found ING very easy to use, but have only used them for savings accounts, not checking or credit cards, so I can't comment on those services. Although their savings accounts offer higher interest rates than my credit union, these have been steadily dropping over the past few months. This could be indicative of all banks, but the interest rate is just above 4%. As jiejie said, I would not make this a priority unless you are talking about major amounts. I would put convenience and low fees as your main priorities.

I do like the security of having my money in separate accounts. That way, if I lose my ATM card, I can't get all my funds wiped out. Also, I like being able to transfer money for free. I think ING allows this for up to 5 bank accounts, and not all have to be in the US.

For Citi, this link to the Ts&Cs may help:
https://web.da-us.citibank.com/popups/ao/client_agreement.html

Addendum dated September 12, 2007 to pages 20-22 of the Client Manual - Citi to Citi international transfers with a table that includes India. Note: this feature has been temporarily suspended on Citi Online and must be done through a Citibank Financial Center or selected Citibank ATM.

Addendum dated July 15, 2007 to page 18 of the Client Manual - on January 26, Citi will begin imposing a 2% FOREX charge on ALL overseas ATM transactions.

Pages 40-41 of the addendum dated September 12, 2007 - current fee schedule. Check out the fees for an online initiated OUT wire transfers, $18.75 for domestic and $30 for international, not bad IMO but they do charge $10 to receive a wire. DO MAKE SURE YOU DO THE PAPERWORK AND GO THROUGH THE HASSLE TO SET UP ONLINE WIRE TRANSFERS WHILE IN THE STATES.

Pages 4-6 of the addendum dated September 12, 2007 - interesting how the same Citi EZ Checking account can differ by state. Appears that CA accounts are charged $1.50 for non-Citi ATM use whereas my MD account gets 5 free ones/month. So factor this into your 2% overseas FOREX charge as it is not yet clear if this will be charged at overseas Citi ATMs starting January 26.

The IIT Transfer Ts&Cs at the very end of the online document - all about the free ACH transfers.
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What I will be doing come January 26 (just to illustrate how one USA expat manges things):

For overseas ATM use - Everbank for the no per use charge and 1% FOREX fee.
For domestic (USA) ATM use - Citibank ATMs or 7-11 MoneyPass ATMs fee free.
For OUT wire tranfers - Citibank Online.
For IN wire transfers - Everbank (no IN fee).
To avoid Citi EZ Checking min balance/monthly charge - do one free ACH IN transfer from Everbank to Citi initiated from Citi Online's superb platform to avoid this fee.
To avoid Everbank min balance/monthly charge - I don't usually bother as the monthly charge is only $4.95 when it occurs.
To move funds between the accounts - free ACH transfers easily setup from Citi Online.
Best interest bearing options - Everbank especially if you link it to Everbank's World Market account giving you other options like foreign currency CDs to just outright cash holdings of foreign currency and even gold, silver and commodity investment and spec options.

Good Luck.

Have any income you may get direct drposited to WF oryour userer of choice is. Simply atm city, bayybeee!
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Be not the fool in the Tarot deck, my son.
Naîvité is for those afraid to try other countries.
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THE MOST VALUABLE TRAVEL IS DONE WITH THE EARS.