Currency. One less thing to worry about. I’ve found myself in places where credit cards, or banks were never an option. The most convenient option, if available at all — tends to be much more expensive than the numbers below.
| Currency Exchange Method | Average Exchange Rate | Average Fee | % Higher Than Best Option |
|---|---|---|---|
| Credit Card | 1.1165 | 1.50% | 0.00% |
| Debit Card | 1.1165 | 1.94% | 0.45% |
| Bank Avg. | 1.1862 | $4.12 | 5.76% |
| Credit Union Avg. | 1.1906 | $2.70 | 5.65% |
| Travelex | 1.2311 | $0.00 | 7.93% |
Thank you, WalletHub for the 2019 stats.
When I prepare for an overseas trip, there are a few things that I double check ahead of time to avoid any issues when I am out of the country — like alerting my bank/credit card companies and finding that little pointy thingy to open the cellphone slot and install a new sim card — which is a pain, so Apple needs to get with it and install a second sim card slot — just saying.
My friend, Nikki, who works for a bank, was giving me tips on ordering foreign currency before my departure, when I told her about my Charles Schwab High Yield Investor Checking Account.
Not only does this card save you from having to pay crazy exchange rates, but it also comes in handy at any locations where only cash is accepted. Just remember, you do need to be a U.S. resident to apply for the debit card. I never use my Schwab card, since I typically use my points/miles credit cards, but, In other countries, I keep it around just in case I need to withdraw the local currency.
My one caveat is not with the card itself, but with the use of debit cards overseas in general. On my recent trip to Turkey, my first stop after arriving at the airport was at one of the popular bank chains. Being in the airport (and a stunning one at that), I thought it would be the smartest choice to remove the necessary amount of cash for my trip before leaving the airport, to avoid any potential issues with street ATMs.
This was a big fail.
Even though I had properly notified my bank about the trip and had used it successfully in London that same day — my card was flagged and the bank machine kept my card. I went to the bank clerk and he informed me that there was nothing he could do.
I notified my bank immediately and they rushed a new one, but it never arrived (according to the tracking information, the address was incorrect. That was my bad, but have you seen Turkish addresses???)
Fortunately, I was often able to use my credit cards at stores and restaurants. When going out with friends, I would pay for the meal or drinks with my credit cards and they paid me back with Turkish Liras. #winning
The lesson of this story? Take two debit cards with you on your trips. In my years of travel, I never knew this could happen, until it happened to me. I ended up requesting an extra one in case of an emergency. Before reaching out to your bank to report the card lost — I recommend attempting the second card at a different ATM location and taking out enough cash before a new debit card number is assigned and the old debit card number is retired.
Ultimately, there isn’t anything like Charles Schwab for U.S. residents. The cards that advertise similar benefits have many caveats and limitations and don’t come close to the freedom you would have with Charles Schwab. I am by no means endorsing the bank or do I make any money from this post — this card is simply a no-brainer.
