My Strategy for Managing Cash While Traveling

People often ask me how I manage cash when traveling internationally.  It's not possible to use a credit card in every situation (Thai massage on the beach, cabs in many countries, etc...) so it's a good idea to have a cost effective way of getting cash when abroad.  The easiest way to get cash is from an ATM.  But most US banks will charge a fee when withdrawing cash from an international ATM.  Sometimes even two fees (a percentage of the transaction and a flat fee)!  Note that this posted originally appeared in 2014 - I've updated a couple of items for clarity.

Fortunately, there are a number of checking accounts which feature "fee-free" ATM withdrawals worldwide.  My primary checking account (Schwab Bank HighYield Investor Checking) comes with this feature.  When I withdraw cash from an ATM (in the US or abroad) I'm typically charged a $2 - $4 fee.  At the end of each month, I receive a deposit from Schwab for the fees charged during my ATM withdrawals.

Schwab Bank High Yield Investor Checking Features

Schwab isn't the only bank that provides this service.  The Points Guy has a great list of the best bank accounts for this purpose.  So there are lots of options.  Once I arrive at my destination, I typically withdraw enough cash (~$100 USD) to pay for the cab to the hotel and a few other snacks/waters/tips, etc with a few dollars left over...

Depending on where we are and what we have planned for the next day, I'll make another withdrawal.  The last thing you want is a ton of extra currency when you leave for him (although I always try to keep the equivalent of $1-$2USD as a souvenir ).  I end up making 2-3 withdrawals per country and incur somewhere between $6 - $12 in fees which are rebated at the end of the month.  Schwab has had this feature as part of their High Yield Checking account for years - hopefully it's not something they change anytime soon!