ATM savings or Checking

We transfer money from our credit union savings account to our checking account so it will be available from ATMs overseas. In my limited experience this is the only way to do it.

European ATMs only withdraw from checking accounts. If you signup for your CU's online banking system, you can transfer money between accounts via the internet.

In all of our ATM usages I have only once been offered a choice between checking and savings. It so surprised me that I actually back out of the transaction for fear that something was wrong. All of our cards are tied to checking accounts and believe that is the best approach. Some have posted that if the card is ONLY tied to a saving account that it will work but why take a chance when you know that the checking account does work.

Correct me if I'm wrong but don't savings accounts generally have a max number of monthly withdrawals? If thats so, then there is something else to worry about even if you get cash out of it from an ATM.

Allen, you're on to something there. It's U.S. banking Regulation D, limiting the number of withdrawals per month by certain means from savings accounts. Some information is here: http://bit.ly/nfDu4M. I don't know all the details of Reg D as it pertains to ATM withdrawals.

Argh! Reg D is a Federal Rserve Board Regulation. The Federal Reserve Board does not and can not regulate credit unions Also, Reg D's limit's are for PRE-authorized withdrawels ONLY and specifically exclude atm withdrawels. Back to the basic question: You can make a withdrawel from savings at a foreign atm if the card you use is tied to that account - - either you've designated it as such (primary) with your institution or it's the only kind of account you have at that institution. I've never seen a foreign atm that allows you to pick which account you wish to withdraw from - - they just go to the default account - - unlike in the U.S. Put the money where your card will let you get it out. If you screw up, I'd assume you could give them a call and tell them to transfer it immediately because you're getting hungry. We routinely move money around by phone (but for other reasons) from all over the place.

I take money from my CU savings account, but then I do not keep a checking account at that institution, so there is no confusion over which account is tied to the ATM card.

Lee, ATM withdrawals are normally tied to the "primary" account, which in most cases is the chequing account. That's certainly been the case with the ATM cards I use. As others have mentioned, you usually won't be offered a choice between savings and chequing in Europe. It would be a good idea to check with your financial institution regarding this question. Also, BE SURE to notify them that you'll be travelling overseas so they don't "freeze" your card when they detect transaction activity in Europe. If there's any way to arrange it, I'd highly recommend packing along another ATM card as "backup". I've had the experience of my primary card failing, and it was really good to have another card available. At least one credit card is also helpful. Happy travels!

Actually, Reg D does apply to federally-insured credit unions. Agreed, because of the ATM exclusion it's a bit beyond the scope of this topic. (I hadn't looked at it for years until this came up. Long ago I had some personal reason for finding out about it, and I think ATM withdrawals were limited back then - though they aren't now.)

Thanks everyone. I believe I have the answer

Hi Lee, We bank with Key Bank and were able to open a 2nd account, not tied to our checking account. We deposited the amount we wanted for Europe. Key Bank gave us debit cards for that account with no name printed on them and no connection to a credit card company. So, if we lost these cards no one else could start charging with them. We pulled money at the ATMs in Italy and France (2 different years) with no issues from this account.

This may not work for y'all but: I opened a business account at my Credit Union so now I have two debit cards. When I travel I keep one stashed for emergencies. My credit unions web or mobile app lets me transfer money between the accounts, so if my primary card is lost or stolen, all is not lost! (Also carry a credit card too). And hello Lee, from a fellow traveler born and raised in the Queen City of the Ozarks!

Aside from the issue about flexibility of withdrawing from checking or savings, beware of an issue I encountered in Sorrento last October. I entered a bank, found the ATM, entered my card and my password, and then saw that my withdrawal would be treated as a cash advance. I promptly cancelled my transaction and talked to a bank official. Even the bank official was surprised to see what transpired when I demonstrated to him what I'd experienced. He apologized and referred us to another ATM nearby-where I got what I expected. So, whatever you do at an ATM anywhere, pay close attention to what's going on.

Joseph, I am confused by your post. How could a debit withdrawal be treated as a cash advance? And what difference would it make if it was? There is no interest rate or finance charge associated with a debit card. With a CREDIT card you need to be wary of cash advances because of the inflated (and immediate) fees. But with a debit card, what is there to charge interest on? You aren't borrowing anything.

Nancy, I was dealing with an American debit card AND a foreign bank. As a licensed lawyer, I was very wary of seeing and being bound by language that characterized my intended transaction as a "cash advance". I'd never seen such language used before in a transaction when using my ATM card. Whether such language would bother anybody else is not for me to say, but I thought that alerting the original poster might be a good idea, especially since the bank official was surprised by what the screen display said and apologized. I doubt that he would have assumed that accepting funds tied to such language would be acceptable.

I agree that it is unusual language, but it really didn't mean anything. I use American debit cards and foreign banks fairly frequently, and I have never seen that language, either. But it wouldn't have spooked me, since it is meaningless when applied to a debit card. A cash advance on a credit card incurs immediate accrual of interest, instead of having a grace period like you normally have with a purchase. But a debit withdrawal happens immediately anyway, with no interest.