Banks and ATM transaction fees - advice?

Wow. That is very impressive. Thank you a lot for the tip Steve, I'll be visiting both of those banks tomorrow.

I was under the impression however that the non-customer atm fees were charged by the non-affiliate European bank. I wonder how Capital One and Schwab manage to evade this?

Ethan

Before you chase yourself silly opening new accounts, go ask your bank what their deal is. My podunk bank and podunk credit union give me a deal very similar to the commonly touted ones; it's so close that I didn't change and I travel internationally roughly six months of the year.

Also, it's been my experience that few, if any, banks in europe charge a fee for using their ATMs.

Also, you mention a savings account. I use a debit card only against a checking account. I'm not sure what the implication is, but I'd check on that as well.

ethan,
All the charges come from your bank,I haven't seen a European bank that charges for using its ATM, see http://flyerguide.com/wiki/index.php/Credit/Debit/ATM_Cards_and_Foreign_Exchange

You don't need affiliate banks just the ATM and your bank have to be on the same network Visa/Plus and MasterCard/ Cirrus are common in Europe and the US.

Ed

Thanks for the input. I won't be opening any new accounts anywhere until I find what is going to work for me best. I will be visiting my own bank tomorrow as well. And yes, I suppose I meant checking account rather than a savings account as you pointed out.

That's interesting that European banks tend not to "double dip", I was very much unaware of this.

My experience is the same as Ed's - my small local credit union charges nothing for making withdrawals from international ATMs. When you are checking around, make sure that in addition to conversion fees you ask if there is a per-transaction fee from your bank. Some of the major banks charge,for example, a flat $5.oo fee for foreign ATM withdrawals in addition to their currency conversion fee. You want no transaction fee and no conversion fee.

I like Schwab, too. You have to open a brokerage account and a checking account to get the VISA, but there is no obligation to actually use the brokerage account, except to collect your 2% cash back rewards -- they are deposited monthly in your brokerage account and you have to transfer them to your checking account in order to withdraw the money.

Bank of America used to have no fees whatsoever for getting Euros or British Pounds at an affiliate bank, but I believe they now charge a 1% currency conversion fee. At non-affiliate banks they charge a $5 flat fee per withdrawal.

Schwab charges a 1% currency conversion fee, but will refund any ATM withdrawal fees you may incur.

I recently booked a hostel using my debit card issued by a local credit union. In my checking summary, it looks like they charged me 1% foreign transaction fee (separately) and a 1% conversion fee (included in the transaction). Seems pretty standard to me.

Credit unions seem like the way to go in most respects, not just international travel. All their fees are reasonable and easily wavied unless you're really reckless with your money. AND I make anywhere between 2-6% interest on both my checking and savings, as opposed to the fractions of a percent I got from Bank of America back in the day.

Turns out the nearest Schwab bank is a 45 minute drive away from here. But i did go to my credit union today, Anna, and as turns out their rates were very good. Ascend Credit Union charges a 1% conversion fee and a $1 transaction fee... unlike bank of america who charges $5 for every transaction - yikes!
I found Ascend also offers Traveler's Cards which is what they replaced their travelers checks with. I'm waiting on a call from Ascend tomorrow morning for more info on these as its possible i could save more with it.

Thanks for all the helpful replies guys!

Ethan - I use my Capital One ATM card when I travel. There are no fees - conversion or other - and I have been able to use the card everywhere in Europe. The one nice thing is that it is just an ATM card and not a Visa or Mastercard debit card. If I lose it, no one can do anything with it without the pin. After having my debit card information stolen and the card cloned (it happens a lot lately - at least according to BofA), I like just having the ATM card that can't be used as a Visa/Mastercard for purchases.

I opened my accounts online (they have a savings account bonus through the Costco website). They only issue the card for their Money Market accounts, so I just transfer money from savings before I go on my trip. Also, I like having a separate travel account, so I make regular deposits before my trip to have the money set aside.

Ethan, ATM cards have to be connected to a checking account when used in Europe. In Europe the machines do not give you a choice between savings or checking.
I have known people who went over thinking they would use their ATM card connected to a savings...sadly they wasn't able to use it.

Ethan, the travel card you mentioned sounds a lot like the Passport card my local credit union offers for travel. I checked into it to see what the benefit of that was over just using my ATM card abroad. It is a prepaid debit card, and there is a setup fee and other fees of various kinds (like for taking any remaining money off of the card when you get back). When I asked why anyone would want to do that instead of just using their ATM card, they didn't appear to know that you COULD use a regular ATM card anywhere. Since you are opening a new account anyway, there might not be any advantage to having a special card for travel, and I doubt that it would save you money. My suspicion is that it's a product sold to people who don't know there is an easier, cheaper way to go. I've used my regular ATM card everywhere from China to Europe to Costa Rica with no problem.

I've been regularly charged a $3 flat fee to use an ATM in Europe by my bank. Some banks and credit unions don't charge the fee but you have to weigh their overall package to decide if it's a good deal (monthly service charge, minimum balance, etc.). Navy Federal Credit Union and USAA come to mind as financial institutions that waive charges.

I have never been charged an ATM non customer fee in Europe. I suppose it could be a new thing.

Currency conversion fees seem to be associated with using your credit card rather than an ATM. I know banks are looking for new fee revenue so maybe that's recent too.

I've always kept the fees minimum by making fewer, larger cash withdrawels at ATMs. I keep the credit card fees down by using the cards with the best deals. Also avoid the Exchange machines that look like ATMs in airports. Make sure you are actually using a bank ATM, the exchange machines are very expensive to use.