When comparing bank accounts, there are many factors to consider. Bank accounts with no overseas ATM fees can be attractive products for travellers, but it’s important to be aware of the details in the fine print.
We’re going to look at the benefits of bank accounts with no overseas ATM fees, so you can determine whether this is the best bank account for your situation.
How do bank accounts with no overseas ATM fees work?
Bank accounts with no overseas ATM withdrawal fees can be an attractive prospect for travellers who want to access cash when they’re on holidays without facing excessive charges.
The everyday debit card you use to access cash from your transaction account can generally be used to withdraw money overseas. Bank accounts with no overseas ATM fees will allow you to do so without having to pay an additional charge purely for the transaction.
That said, you may still have to pay a foreign transaction or currency conversation fee if you’re making an ATM withdrawal overseas. Check in with the product disclosure statement or call your bank directly for more details.
What type of bank accounts are available?
Most banks, credit unions and building societies offer different type of bank accounts, allowing members to meet their financial goals or manage money on a day-to-day basis.
- Transaction accounts – Everyday bank accounts, also known as transaction accounts, are designed to make it easy to manage your day-to-day expenses. Money in transaction accounts is highly accessible, which makes these bank accounts the perfect way to pay bills and receive pay.
- Savings accounts – These bank accounts are a little less accessible, but offer account-holders a higher interest rate. People who open savings accounts generally do so with a view to expand their wealth and save up to make larger purchases.
- Joint accounts – These bank accounts are opened in two names, often by people in a relationship. Joint bank accounts can be easier to manage, but there are risks.
What type of bank account fees do I have to pay?
When you’re comparing bank accounts, there are many different fees to be aware of:
- Overseas ATM fees – You can expect to pay overseas ATM fees, with many bank, credit unions and building societies, when withdrawing cash in a different country.
- Administration fees – These fees are designed to cover the upkeep of your account.
- Online and phone banking fees – These fees are charged by some financial institutions when bank account holders do banking online or over the phone.
- Overdraft charges – Depending on your financial institution, you may be penalised for overdrawing on your bank account balance in the shape of overdraft charges.
What other options do I have for withdrawing money overseas?
Bank accounts with no overseas ATM fees are not your only option for accessing cash abroad:
- Credit cards – Many people use credit cards when travelling overseas to access rewards and points, but it is important to note that the credit card’s fees can be significant.
- Travel cards – Travel cards provide another option for people withdrawing money from overseas ATMs, but these travel products do have their limitations.
- Traveller’s cheques – Traveller’s cheques are probably going the way of the dodo, but some holidaymakers still use them to manage money overseas.