The biggest challenge for your next trip might be saving sufficient money. Lack of money may create an obstacle to accomplish your dream travel. Many times travelers expense lots of money to pay bank fees. But there are some smart ways to avoid bank fees while traveling. You can easily eliminate the foreign transaction charges and take the necessary steps to enjoy a good exchange rate. Here are a few ways to avoid bank fees:
Reduce ATM fees
When you travel for a week or a month, you may need to withdraw money from an ATM. If you travel for a long time, then you need to pay lots of money as ATM fees. So it is wise to eliminate those fees. You can choose a bank that has a global ATM alliance. This is a network of all large banks and allows you free ATM withdrawals. You also can use a low-fee card.
Minimize credit card charge
The next thing you can do is to avoid the credit card foreign transaction fee. Most of the credit cards are charging a 3% fee on purchasing overseas. Nowadays most of us use a credit card for everything. So if you can choose a credit card that charges no overseas transaction fee or less fee, you can save lots of money while traveling.
Exchange your money smartly
Every time you exchange your money, your money is converted into local currency for billing purposes. You may not get the official rate that you see online. Because that is the interbank rate and you will not get that rate. So what you can do is try to use your credit card. It will help you to get the rate that is closest to the official interbank currency rate. ATMs can provide you the best exchange rate after credit cards. But don’t use ATM in weird locations.
Avoid airports to exchange money
Most money exchange options at airports don’t offer a good exchange rate. The rates you see at the airport will be the worst. So try to avoid it. If a possible walk around the main city center and check the best exchange rates that are available at that time.
In sum, bank fees may cost you much especially throughout a long trip. If you want to save money while traveling you need to reduce the bank fees. For this, you need to be proactive and take effective steps at the right time. The right planning may help you to do smart banking and exchange money efficiently. You may be able to reduce the bank fees and save tons of money for your travels.