Banking While Traveling

One of the first things you must take care of before you go around the world is getting your finances in order. That doesn’t seem hard right? You already have a bank account and an ATM card.  What more do you need? The mistake most travelers make is that they don’t make their money work for them while they are away and they don’t know how to avoid bank fees. It’s important that you organize your bank and funds properly so you can make some money while away and make banking easier for you while you travel.

First, set up a checking account at a major bank. Most major banks have partnership agreements with overseas banks and, by using those agreements, you can reduce your ATM fees. Most ATM fees are usually US$3 overseas. Some banks charge as much as US$5 per transaction. Moreover, find a bank that uses a 4 digit security code. Many ATMs around the world do not use the traditional 6 digit code and will not accept a card that does. This is particularly true in the U.K.  For this reason, we recommend using HSBC for your banking while you travel. They have ATMs all over the world, a 4 digit pin, and numerous partnership agreements.

Second, create a second bank checking account. This is so you have a back up in case your primary account card gets stolen or lost while you travel.  The rules for setting up this account are the same as your primary checking account.

Third, open up an online money market account. You can put your extra cash in there so you can earn some interest while you are traveling. It may not be much but an extra few hundred dollars can go a long way while traveling. Moreover, this account can be used to connect your two checking accounts so you can easily transfer money between the two.

You want your money working for your while you are away so you can reduce the amount of fees you pay and spend more time on the road. Over a long trip, those fees can add up to a substantial sum. We’d rather use that money for extra days on a beach or beers at the bar and not to pad the profits of a large bank. We think you feel the same way too. So do your travel banking the right away and avoid fees and travel longer!