Charles Schwab ATM Card?

This was a topic a couple of weeks ago. Try searching on Charles Schwab in the search box on the upper right of this page and you should get those posts.

Thanks Nancy, I had tried that search last week and came up with no results, but they showed up this time. Good discussion on all things ATM related.

Simone - you may have already found my posting on another thread but I'll put it here as well.

I opened a Schwab high yield account last fall for both myself and my daughter who is studying in France for the year. We visited her this past March and had a chance to use our Schwab card. There were no ATM fees and no currency conversion fee. As far as I could tell - based on xe.com historical figures for the dates I was there - the exchange rate they quoted me was pretty well the rate quoted on xe.com. I am very happy with the Schwab card both here and abroad. They have also reimbursed all ATM fees that other (US) banks have charged me for withdrawing from their ATMs. There were no ATM fees charged by the European banks we used.

Just to satisfy my curiosity, I called Schwab. I have a brokerage account with them (which you need in order to get the High Yield Checking Account). They reimburse you for all ATM fees charged by banks in Europe. However, they do not reimburse you for conversion fees charged by vendors. I'll still use my Capital One for purchases, hotel charges, etc. But I think I'll open the Scwab account to get $$$ from ATMs there. Thanks everyone.

"However, they do not reimburse you for conversion fees charged by vendors."

Vendors do not charge you conversion fees - your bank charges a fee to convert the amount that the vendors charge you - i.e. 10 Euros - into the dollar amount that is withdrawn from your US account. This conversion fee is also referred to as a foreign transaction fee and is sometimes listed as a separate charge on your statement. The going rate seems to be anywhere from 1-3%. Some banks will charge you this fee to withdraw money from an ATM as well as their ATM withdrawl flat fee.

For example: last summer I withdrew 250 Euros from an Italian Bank using my Bank of America card. BofA charged me $332 which was the exchange rate for Euros on that day (1.33). They then charged me $3.33 as a foreign conversion fee. They also charged me $5.00 as an ATM withdrawl fee.

This is different from any discussion of Dynamic Conversion which is where the vendor offers to charge you in your own currency - i.e. USD - apparantly at a very high rate.

In order to have this checking account do you have to USE the brokerage account?

No, you don't even have to fund the brokerage account. Normally, you have to have at least $1000 in the brokerage account, but if you open the (required) brokerage account with the checking account that minimum is waived, and there is no minimum on the checking account, either.

Frank, Schwab used to have a VISA credit card that charged no foreign transaction fees. That card was dropped by Schwab a year or so ago and it is being offered directly by Bank of America. Still no transaction fees, but not sure how long that will last. I still have a Schwab debit card, though. If they are discontinuing that card, they haven't told me. It still has all the features described above.

I know this is an old post, but incase anyone is still wondering...
Everything everyone has said on here is correct so far. I am living in Belgium now, and opened an account w/ Schwab because they don't charge any of those fees and it is a much easier/affordable/efficient way for my parents to get money to me while abroad. Also, the conversion rate is pretty much the one on xe.com like the previous person said. I took out 100 euros the other day, and it was 133.22 which is a 0.75 rate.

I am not sure that is accurate. I read recently that Schwab was dropping it's debit card program. After all you are responding to a nearly four year old postings. Things change in four years.

I can't speak for the Schwab card, which I don't have. But my CapitalOne Hi-Yield Money Market Account card works what I am sure is the same way. The cost of the money I received (euros, zl, czech koriuna, and huf so far, over 3 years) as always been about 0.8% more in US dollars deducted than what would be indicated by that day's exchange rate. This is a network fee of some kind, and I am certain the Schwab card works the same way. With no other fees charged, and account earns a whopping 1/05% interest.

Yes, the card that was being dropped was the credit card. The visa branded debit card still works with no foreign transaction fees, at least as of December. It is a great card to have for any kind of traveler as they also reimburse you for fees incurred by using ATMs in other areas- i.e. you can take money out from ANY ATM and if that bank charges you a fee for using their machine then Schwab will reimburse. I also got it for both my kids when they went abroad.