The 7 Best Money-Saving Tips When Using ATMs Abroad
When travelling, you will quickly realise that in most countries cash is king. More often than not, cash is the preferred payment method, so these withdrawal fees can easily add up when using ATMs abroad.
Knowing how to avoid ATM charges can save you loads of money when travelling. This post will detail the top 7 money-saving tips when using ATMs abroad and recommend banks with free withdrawals.
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Nowadays, the only time I see cash is in a birthday card. For many people when travelling, it can take a while to get into the swing of withdrawing and paying in cash.
These ATM charges can steadily creep up, so it is worth knowing some tips to avoid constant withdrawal fees.
In this post, we will cover the 7 best tips to save you money when withdrawing cash and using ATMs abroad.
International Bank Card
If you’re looking for the cheapest way to withdraw cash abroad and want to avoid international fees, it would be great to get an international bank card.
An international card saves you loads of money as you are not charged each time you use it. This applies to withdrawing cash from ATMs or using your card to pay directly.
Revolut, Monzo, and Starling are some of the best cards to use abroad, as there are zero fees and they usually offer better exchange rates. You can even transfer to foreign bank accounts this way.
I use Revolut and would recommend them 100%. It is free to sign up for a digital card, and you pay £5 if you would like a physical card. I also find having an international card a great way to budget and save for travelling too!
Use an ATM with free or cheap cash withdrawals
When using ATMs abroad, a top tip to save money is to try and find an ATM with free or cheap cash withdrawals.
There are usually lots of ATM options and naturally, some ATMs charge higher withdrawal fees than others. With a little bit of research beforehand online, you should be able to find out which ATMs are cheapest.
In most countries I have visited, there is typically at least one bank that offers free withdrawals. In all of the countries I have visited, I have listed them at the bottom of this post.
Sometimes though, there are no free ATM withdrawals anywhere. The only countries I have experienced this in are the Philippines and Thailand.
Never accept the conversion offered by the ATM
This is the golden rule for avoiding international ATM fees and saving money. When withdrawing money from an ATM, it will always ask if you want to accept or decline the conversion offered by the bank.
ALWAYS reject the conversion. If you don’t, you end up paying an extra 10% to the bank for no reason at all.
Draw more money out than you need and keep half safe
If you do need to pay a withdrawal fee, then I would recommend drawing out more than you need and keeping half safe.
This means you do not have to pay the withdrawal fee so many times. Keep half of the money safe in your locker to avoid carrying it all at once.
Go inside the bank to withdraw with your passport
For those looking for free cash withdrawals abroad, there is always the option of going into the bank directly with your passport and withdrawing cash this way.
This usually takes a little longer but is worth it if you want to save money, as they do not charge withdrawal fees. I also opt for this if I need to withdraw a particularly large quantity, as it feels safer.
You simply go in with your passport and card, sign and they will give you the cash. This is a great option in Thailand where all ATMs charge about $7 to withdraw. The best bank for this is Krungsri.
Never use the ATMs at the airport
If you want to save money when withdrawing cash abroad, then try to avoid using the ATMs in the airport.
These typically have the most expensive withdrawal fees so try to arrive at a country with a little bit of cash on you and then withdraw when you are away from the airport.
Avoid withdrawing money on weekends and national holidays
A tip to keep in mind when using ATMs abroad is that sometimes the withdrawal fee is higher on weekends or national holidays.
This is only something I experienced in the Philippines but worth keeping in mind. Also, over national holidays banks are typically closed, and on weekends queues are much longer, so it is best to avoid ATMs at these times.
Recommended ATMs abroad with free withdrawals
In my experience travelling and using ATMs abroad, these are the banks I used in each country to withdraw cash for free.
Central and South America
Costa Rica – Banco de Costa Rica BCR
Peru – BCP
Colombia – BBVA, Davivienda
Mexico – No free withdrawals, Bancoppel has the lowest fee.
Asia
India – State Bank of India SBI, Bank of India BOI
Philippines – All ATMs charge the same 250 PHP.
Vietnam – VP Bank and TP Bank
Thailand – All charge 220 baht. Krungsri Bank allows free cash withdrawals with your passport.
Is it cheaper to withdraw cash abroad or use a debit card?
In my experience, I have always found it cheaper to withdraw cash from an ATM than use my debit card. It is not only cheaper but also more convenient as not everywhere accepts card.
Sometimes you will even be charged an extra 5-10% for using your card, so I try to always have cash on me. I have also found that this is what the locals prefer, so I tend to always use cash.
If you follow the tips above and have an international debit card, your ATM withdrawals should be free most of the time, therefore costing you nothing to spend abroad.
However, if places don’t add the additional fee to pay by card, and you have an international card, then it could be just as cost-effective to use your card.
How can I avoid debit card fees abroad?
By following the tips above, you can avoid ATM fees abroad with relative ease. If you do opt to use your card over cash, then ensuring you have an international card is the best way to avoid charges abroad.
Just make sure that when you are paying, always pay in the local currency and not your home currency, otherwise, you will be charged exchange fees.
This post has detailed the very best tips to save money when travelling and using ATMs abroad, so you can avoid withdrawal fees and get more for your money!
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