Currency Exchange

Why not just have a single credit union account for both travel and non-travel periods? I find that a credit union satisfies pretty much all my needs, not only when I travel, because they have very low fees for ATM withdrawals and their business practices are in line with my values. If you travel a lot, then maybe it's not worth opening and closing accounts - if you don't, then maybe it makes sense (I don't know since I use my traditional account for everything).

You are right that ATM withdrawals are the way to go to get cash overseas.

Not sure why you close your account after every trip. Seems inefficient especially if you travel a lot!

I have an account with Capital One 360 which has zero fees for everything and as long as the balance is positive it will stay open. I only put money in when I am traveling. Using the debit card for this account is the most convenient access method and least costly way I have found since my main bank charged excessive fees for getting money out of a foreign ATM.

As stated many, many times the cheapest and most convenient way to obtain local currency is a debit card at a bank owned ATM in country. What I don't understand is the opening and closing of a check account in the US. When traveling I like to have debit cards tied to two different account - in our case - a regular checking account and a credit union account. The CU account is basically fee free so that is our primary access to cash. The checking account is typical $5 and 3% but it serves as back up in the case the CU account is not available.

Need a little more explanation for what you are trying to accomplish? Is there a security consideration on your part? Do you not normally maintain a checking account?

I second Mark's post above. I also use a Cap One 360 debit card account for travel (only). No foreign transaction fees (unlike the debit card tied to my "home" bank account) and in the (hopefully) unlikely event the Cap One card is hacked, my "home" bank account is not affected. I generally keep a few dollars in the Cap One account when not traveling and transfer funds right before departure. No fees, no muss, no fuss. Never had a problem using the card at any ATM in Europe.

Why close the account? Are you afraid that someone got your account information and might clean out your account months from now if it's still active? I think as long as you use bank ATMs, particularly one in a secure lobby, you chances of that are minimal. Now, using a credit card and letting someone go away with it is another story. Also, watch out for skimmers at unsecure ATMs.

I rarely use credit cards in Europe. I always pay with cash from bank ATMs, and I've never had a problem.

Is there better/more convenient way to get cash in a foreign country?

"Better" way depends on your specific situation. Starting point is opening with a low balance and closing a special checking account for travel sound inconvenient and potentially costly if any fees are involved. Only you would be able to appreciate any value in this short term special account strategy.

Finding and opening a no-fee checking account that requires no or minimal minimum balance and offers foreign ATM usage with no or minimal (e.g. 1%) premium over Interbank rates would be the "better" way than one that does not offer those benefits.

While some respondents seem biased against credit card usage, credit card usage is widely accepted in some advanced economies, using local cash for smaller purchases and credit card transactions for larger purchases helps me to manage cash.

My wife and I each have a debit card tied to our one Schwab account (no foreign ATM fees or foreign transaction surcharges). We each bring our own debit card. If something should happen to one, we can cancel it and use the other. I don't see an urgent need to open additional accounts just for travel. Personal preference I guess.

But I agree that if you want a "travel" account, Capital One 360 is very easy to open on line- no minimum balance requirement or monthly fee. And it comes with an MC debit card with no fees for using foreign ATMs.

While some respondents seem biased against credit card usage

I'm not biased. Avoiding credit cards in Germany (or traditional German areas) is smart. I've found a great many places (accommodations and restaurants) in Germany that don't take credit cards, and they are usually the less expensive places. Even here in Colorado, the local fish monger doesn't take credit cards. He says the cost is not worth it. I've stayed in a lot of small, family-run, Pensions, Gästehäuser, and Hotels that were inexpensive and don't take credit cards. I've found other places that do take credit cards and they were on the expensive side.

There are a whole lot of "no star" hotels in Germany that, in my experience, could have more than one star, but the DEHOGA star rating system says that in order to have more than one star, you have to take credit cards. Rather than appearing to be only worthy of one star, they don't bother with the rating system.

The people who think all accommodations take credit cards obviously only stay at star-rated hotels.

Several years ago, some of my co-worker went to Germany and the company did not tell them about needing cash. When they went to check out, a few hours before plane time, the hotel didn't take credit cards and they had little or no cash and couldn't pay the bill. They had the hotel call our Munich office, who convinced the hotel at they would pay the bill, or they would have missed their flight home.

i use credit cards as much as possible. I find it convenient and I have cards that give me travel points. They have no foreign transaction fee so I'm getting the bank exchange rate.

I keep some cash with me for those times I need it. I use the ATM to get it as my debit card also has no foreign transaction fees. (Schwab.)

There are people here who still think it is better to pay in cash. But if there is no benefit financially, and the merchant accepts plastic, why bother?

On my recent nine week trip, I made three ATM withdrawals for a total of about $500. And I came home with foreign currency.

The original question was "Is there better/more convenient way to get cash in a foreign country?" The question was not "can I use my credit card?" That is why the answers were as they were.