Do you know that every time you use your debit or credit card in a foreign country, your bank is charging you some exorbitant fees and giving you a terrible exchange rate?
Yet, you can save thousands of naira every year by opening an international bank account for this purpose.
If you travel abroad for a week or two every year, three to five per cent in various fees and bad exchange rates for international card use is not really a big problem.
But as a frequent traveller or digital nomad spending most of your time abroad these fees add up quickly.
In fact, you might be donating hundreds or even thousands of dollars (close to a million naira) yearly to your bank. I am sure you could think of a better way to spend that money.
There are international or foreign banks out there that charge no monthly fees, zero percent foreign transaction fees, zero per cent currency exchange markup, zero per cent Automated Teller Machine withdrawal fees and even refund fees imposed by ATM owners worldwide.
Does it sound too good to be true? Well it is not. Several banks offer good account for international travelers or nomads in North America, Europe and Oceania, according to www.valuepenguin.com.
Getting good offers from banks as international travellers
While most people accept that travelling abroad can be costly, no one welcomes the added expense of exchange rates and foreign transaction fees. Whether you rely on cash or cards, having the right bank and opening the right account with them as an international traveller can reduce the cost of using a different currency; leaving more room in your budget for the trip itself.
According to www.valuepenguin.com, there are banks that offer products or accounts that minimise the kinds of fees you pay on overseas spending.
In the United States, for example, where most Nigerians travel to, here are the best banks for international travelers:
For international ATM use, a US bank called Schwab Bank is a cost-effective choice for travelers, thanks to its excellent ATM fee policies.
While Schwab doesn’t have any physical bank location, it compensates with a generous attitude towards ATM use.
The High Yield Investor Current Account comes with no Schwab fees at any ATM and unlimited reimbursement of whatever fees you pay to other banks at a non-Schwab ATM.
Schwab’s online banking enables international travellers to view balance, check transaction history and make transfers from their mobile device. Opening a Schwab current account requires no monthly fees or minimum balance. Schwab doesn’t provide international wire transfers, but that won’t make it any less useful to travellers who mostly pay with cash, credit or debit. If your balance runs low, anyone in the US can make a domestic ACH transfer to refill your Schwab account.
As a Nigerian who regularly visits the US and other countries, if you’re interested in choosing a bank that you can use anywhere, Capital One’s mix of features may provide the versatility you need. Capital One is another of the few banks with no ATM fees and no foreign transaction fee on debit cards, if you go outside the US again. Even though Capital One 360 current account doesn’t have as many travel-friendly features as Schwab Bank, it may still be a better option if you usually visit areas where a Capital One branch is close.
Unless you just want an extra current account to use while travelling, Capital One’s brick-and-mortar service and full range of financial products make it a superior choice for the long term. Capital One Bank occupies a middle ground between traditional banks and newer online companies. Its line of 360 banking products come with much lower fees and a convenient online app, both features typical of online banks. At the same time, customers also have the option of visiting a Capital One branch to make deposits and speak directly with a banker.
Visiting a foreign country always involves one or two unexpected situations. There are banks in the US that operate across the world, with physical branch locations in dozens of countries. These branches can act as a convenient place to access your money and ask detailed in-person questions about how to navigate the local economy, even though you are a Nigerian.
Best banks and products for frequent travelers
Citibank probably has the greatest global coverage of all multinational banks, making it the best choice for travelers who often visit a variety of destinations. Citibank is present in Nigeria, although for mostly corporate customers. Citibank operates over 1,000 branches in the US and more than 4,000 globally. For the frequent traveller, this translates to free 24-hour ATM access at 45,000 machines spread across 30 countries. Even if you aren’t within range of a branch or ATM, the bank’s service representatives are always available by phone at Citibank’s international contact number.
The advantages of travelling on Citibank are many. Customers can call the bank to order next-day delivery of foreign currencies to their hotel, home, office or nearest Citibank branch. The order gets debited out of your current, savings or money market account, at an exchange rate determined by the bank. This is good for Nigerians who may have need to travel to other countries, after the leaving the US, before returning to Nigeria. Finally, Citibank also offers free wire transfers between Citi accounts, offering an easy way to get money to or from people in other countries. This is yet to be verified anyway.
For frequent travelers to Europe, especially the United Kingdom, HSBC provides several strong travel-related benefits to customers with higher balances. With HSBC Advance and HSBC Premier current account, you can move funds between accounts around the world via automated transfers and online apps. Wherever you travel, you can monitor and manage all your HSBC balances through a single login on your mobile device. If you opt for a Premier Current account, you can also avoid paying any foreign transaction fees on debit card usage abroad.
However, HSBC is somewhat limited in the US, and its most travel-friendly features are reserved for premium current account-holders. If you find that the monthly fees and minimum balances on HSBC’s top-tier accounts are too high, you are advised to consider a more flexible option such as Schwab or Capital One, both of which offer online-only accounts that come with reduced bank fees.
In Nigeria, there are a number of local banks that offer special and attractive products for frequent travellers or premium customers.
If you travel within Africa regularly, for example, Ecobank Nigeria offers various products that make you pay less in banking fees. Ecobank is present in 33 countries in Africa and that makes it easy for the bank to assist customers who travel to any of those countries.
Ecobank also offers some special products for frequent travellers to countries outside Africa. Its premium customers called Premier or Advantage customers stand to enjoy some benefits although at some costs.
If you don’t see a suitable option in this article, you should consider whether there are other banks available that match your financial habits.
Standard Chartered Nigeria also offers some benefits for customers who travel to countries where it is present.
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