Going on a vacation with your friends or family is an amazing thing. You get a break from the mundane life, plus you get to see a new place. However, when you are charged with a bank fee on your holiday, your trip may no longer be so blissful like it was before. You would get stressed about it and thus are unable to enjoy your vacation.
The worst thing about a bank fee, while you are on a holiday, is that you have to pay a fee for accessing your own wealth. Plus, there are some other fees too, that you might now even know about, until you reach home and see your bank statement.
In this article, we will tell you about some of the pesky bank fees that you may be charged with while traveling. Additionally, you will learn how to avoid bank fees, which can be huge in some cases. For instance, you withdrew money from the wrong ATM many times on your trip, then you would have to pay a lot of fees. So, let us look at the most common bank fees and see how to avoid bank fees.
Banks charge a lot of fees, when you withdraw money from an overseas ATM. Most of the American banks charge around $5 to $7 on every foreign ATM withdrawal. Therefore, if you travel many times in a year to a foreign country or withdraw money frequently on your overseas vacation, then you would have to pay a lot of money in the form of ATM fees.
When asking how to avoid bank fees, you can save your money on ATM fees by planning in advance before you take your foreign vacation. You need to check the terms and conditions of your bank regarding its ATM fees and then act accordingly.
Credit card fees
The other type of fees that you can be charged with on your joyful vacation is credit card fees. Of course, you will do a lot of shopping on your trip and most of the times you will use your credit card for making the payments.
But do you know that with your every credit card purchase you are adding up your credit card fees? Most of the credit cards charge a fee of around 3 per cent to 5 percent on every overseas purchase. This is a lot of money, if you calculate.
In order to know how to avoid bank fees, you must be aware that not every credit card has a credit card fee. Therefore, you need to choose the right credit card for travel, if you travel a lot around the globe. This way you can save loads of money while traveling.
Don’t go for random ATMs
You should not use just any ATM in a foreign nation. Just because the ATM is at your hotel or near the corner, it is not recommended to withdraw money from any ATM. This is because you can end up with a lot of ATM fees, if you use random ATMs throughout your trip. By using the ATMs in which you have your account, you can avoid ATM fees and thus pile up your nest egg.
Use local currency
When you are on an overseas trip, make sure that you purchase anything using the local currency of that nation. Generally, when you use your credit card in a foreign country, the machine offers you to choose your home currency as an option. You should not opt for this.
When learning how to avoid bank fees, you must choose your home currency over the local currency. The thing that most people don’t know is that banks typically charge a really bad conversion rate, when you pay from your credit card on a foreign land. Therefore, choosing the local currency is the best choice, when traveling overseas.
Don’t exchange money with anyone
Although, you may get lured to exchange money on the street with a random guy, it is unadvisable to do so. There are people outside banks and at border crossings too, who will ask you to exchange money. You shouldn’t listen to them, even if you feel that they are offering better rates than banks. This is because such people are frauds. Not only do they offer a bad exchange rate, they may also entirely dupe you.
So, these are some of the bank fees that you must heed while traveling. We hope that your question of how to avoid bank fees is answered now and you know what to do to shun bank fees while on a vacation.