The cheapest ways to access your money overseas

You’ve been planning your trip abroad for ages.

You’ve scoured websites to find the best deal on your flights. You’ve spent hours searching for the right hotel in the right spot at the right price. You’ve even mapped out the best restaurants, iconic tourist attractions and ideal sunset spots to Instagram so you can make your followers a little envious.

It’s great that you’ve saved and planned what you can afford. Now it’s time to turn that budget into a vacation that you’ll remember forever.

While you’ve been busy budgeting for your trip, you may not have considered some of the unexpected costs that can throw your budget off course like possible fees and currency exchange rates that might impact what you can actually spend. Use this guide to prepare for all the ways you can access your money abroad and keep your travel budget intact.

Since not everyone will accept credit and debit payments, you’ll want to have some cash in your wallet. Some restaurants and taxis, for example, only accept certain credit cards—if they accept them at all. Plus, you may want to tip along the way.

That doesn’t mean you have to take a pocketful of cash with you. In fact, the best way to withdraw cash abroad could be in your pocket already.

Like no-transaction-fee credit cards, there are no-transaction-fee debit cards. If your travel money is in a checking account with no foreign transaction fees, you’re ahead of the game. Foreign ATM fees can be a bigger cost than you might have realized. Some fees can be as high as $5 per transaction, plus around 3% of the amount you’re withdrawing.¹

To get you started, one of the best ways to bring money overseas is to exchange some currency at home before you board your flight. That can give you some peace of mind and keep you from scrambling when you reach your final destination. You’ll want to give yourself a few days to exchange your currency because your local branch may need time to get the currency you want. The steps may vary based on your bank, but generally this is how you exchange currency at your local bank:

1. Call your bank 2 or 3 days before you want to exchange currency.
2. Tell them how much you want and in what currency.
3. Wait for it to be delivered to your local branch for pickup.

You’ll want to keep in mind that not every bank will have easy access to every form of currency. Remember to call your bank ahead of time in case you need to make other arrangements such as an international currency exchange.

While it may seem like a handy thing for a vendor, a concierge or an ATM to convert your transactions to dollars, there can be hidden costs and substantial markups on top of a foreign transaction fee.² You’ll also want to keep in mind the exchange rate from the U.S. dollar to your destination’s currency.

Downloading a conversion rate app to your smartphone will help you spot the moments when such extraordinary rates are being offered. It could also help you find the best way to change money abroad by keeping you up to date on the rates.

Traveler’s checks were created to help people travel with less cash. To get some for your trip, you go to your bank and request them in predetermined amounts. You can then use them to pay bills or exchange for cash. While it seems straightforward, there can be drawbacks to using them.

Like the checks for your checking account, traveler’s checks are becoming less and less common. That means that they can be harder to get a hold of before you travel and it’s harder to find places that will accept them.³ While they might be useful to have for emergencies or if you have no access to a debit or credit card, they’re not typically one of the most convenient ways to spend abroad.

In general, the best way to spend abroad is to have access to your money without additional fees. That means you’ll want to think about all the ways you spend and any foreign transaction fees that might come with them. If you have a bank account or credit cards, check to see if they charge foreign transaction fees. It’s a big help to your budget if they don’t.

How much cheaper will it be not to have those extra fees? Foreign transaction fees are typically 3%, so every $1,000 you spend, will actually be $1,030. While 3% might seem small, it can certainly add up.⁴

One final thing to remember as you pack your bags, check your passport and grab your tickets: Call your bank and credit card companies to let them know your travel plans. That way, they won’t freeze your accounts when international charges pop up unexpectedly.

Now that you’ve read up on these money tips for accessing cash overseas, all that’s left to say is bon voyage!