If you are US-based, you can survive with zero cash in your wallet (pretty much like in Sweden), but if you are traveling abroad, you’ll find that in many countries and situations you will still need cash (e.g. Southern Europe, Asia and Lain America). But what are the best US banks to withdraw money abroad? I’ve got many questions about cards with no foreign transactions fees, but what about ATM withdrawals?
In case you didn’t know, I’m kind of a card-freak and tested over 150 credit cards (for real!). In this post, I’ve collected a few of my personal choices for the most effective for withdrawing cash from an ATM abroad, selecting some of the best banks that let you overdraft according to AllAboutCareers.
What is an overdraft?
We’ve covered overdrafts a bit before, for example, when we talked about Northmill Bank. Some banks are innovating with providing cheap or free overdrafts instead of offering credit cards. An overdraft is when you take more money from your checking account than you had available for withdrawal. In a way, your account balance becomes negative after you use the available funds (and more) to make a transaction.
For example, if you have $150 in your account and use $200, an overdraft of $50 will be generated. You are “borrowing” those $50 from the bank. Usually, the longer you wait until you return the money, the more interest and fees they charge. Some banks do not allow overdrafts, but others do, and they offer it as an extra product.
ALSO, if your bank account is not authorized for overdrafts and you, as the account holder, did not notify the financial institution of the overdraft, the bank will charge you with hefty higher interest than if the overdraft had been authorized!
So, to summarize, overdraft can be convenient to have, but it can cost a lot. It’s important to pay attention to all the terms and benefits of each package and bank.
What are the best US banks To withdraw money abroad?
I have been reading upon different banks and got a bit of feedback from my US clients living in Europe, and tried to summarize our top choicese here.
Since I found Wise, it’s hard to think of any other complement to my main banks. The Wise multi-currency account and eco debit card is an excellent option for anyone who frequently travels abroad or needs to make international transactions. It offers low fees, convenience, security, transparency, and ease of management, making it a popular choice for many people.
Capital One is one of the most complete financial institutions in terms of international transactions. You can apply for a credit and debit card, plus you can withdraw cash on ATMs with no fees!
- No overdraft fees for foreign checking accounts.
- Covers ATM withdrawals and one-time debit card purchases.
- No fee will be paid, and no fee will be charged if a transaction is not approved.
- Customers enrolled in the “Next Day Grace” program are automatically eligible for fee-free overdrafts.
- If an overdraft is paid, you cannot defer payment. You must deposit additional money immediately into your account to cover the overdraft.
- Your account can be closed if your balance remains negative, which will affect you in the future if you want to open a new account with Capital One.
- New accounts will only have access to the free overdraft once a deposit of $250 is made two of the three months before opening. In other words, new accounts are not eligible for free overdrafts.
- The $250 deposit must still be made to remain eligible for free overdrafts.
3. Ally Bank
I can’t fail to mention Ally Bank, which offers fee-free withdrawal options and other transactions. Undoubtedly, it is one of the best accounts used by those who travel abroad for those who want to withdraw money from their checking accounts.
- You get overdrafts without additional fees and on the spot.
- No minimum deposit is required for the overdraft.
- CoverDraft Service: This safety net allows the checking account holder to overspend, and you can get from $100 to $250 extra temporarily.
- The next deposit will be applied automatically if you have spent more money than you had available.
- 30 days must pass after depositing at least $100 into your checking account.
- You have up to 14 days to pay the negative balance.
- If you do not pay what is owed, Ally Bank will restrict your account and may close it.
4. PNC Bank
PNC Bank excels at covering charges when you make a transaction and spend more money than you have available. They overdraft through 2 different methods: standard practices and overdraft protection, to link the account to another secondary account (credit card, savings, line of credit, checking, etc.).
- Pay overdrafts for checks and other transactions from your checking account.
- Overdraft protection by linking the account with 2 other eligible protection accounts.
- One-time overdraft coverage for everyday ATM or debit card transactions when funds are insufficient.
- If you do not give advance notice, PNC will not pay overdrafts for ATM or debit card transactions.
- Not all accounts are eligible for overdraft coverage, as it depends on the transaction.
- The transaction will be declined unless authorized, but overdrafts have been paid.
- They charge $36 per business day if the account has a negative balance.
It’s essential to ensure that you get the best value for your money while traveling, and it’s important to have it clear before heading off! You don’t want nasty surprises while you are on-the-go. By selecting the right bank, you can get perks such as free ATM withdrawals, better currency exchange rates and even no fees for overdrafts.
As usual, feel free to drop questions or comments down below, or reach out to me via Instagram.