Are CREDIT UNIONS better than BANKS for foreign purchases & ATM use?
May 23rd, 2009, 10:18 AM
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Are CREDIT UNIONS better than BANKS for foreign purchases & ATM use?
Hi Everyone,
I heard that CREDIT UNIONS do not charge extra fees for purchases abroad and using foreign ATMs... is this true? (Conversion fees are annoying!)
Because I was thinking of opening a credit union account anyway.
Also, which credit unions are recommended? I am in southern California.
Thanks!
I heard that CREDIT UNIONS do not charge extra fees for purchases abroad and using foreign ATMs... is this true? (Conversion fees are annoying!)
Because I was thinking of opening a credit union account anyway.
Also, which credit unions are recommended? I am in southern California.
Thanks!
May 23rd, 2009, 10:34 AM
#2
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Hi betty!
Open a Charles Schwab Investor Checking + Brokerage account.
They refund all ATM fees.
In soCal there are many branches -- all of them are very professional and checks get deposited right away.
Open a Charles Schwab Investor Checking + Brokerage account.
They refund all ATM fees.
In soCal there are many branches -- all of them are very professional and checks get deposited right away.
May 23rd, 2009, 10:39 AM
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Thanks, nancicita.
I just found out that my CITICARD charges 3% for foreign purchases.. yikes! That adds up...
That's why I want to use a credit union card instead of any bank. I could be wrong, but I heard that credit unions charge no fees and a much lower APR for foreign purchases.
Anyone else have thoughts on this?
I just found out that my CITICARD charges 3% for foreign purchases.. yikes! That adds up...
That's why I want to use a credit union card instead of any bank. I could be wrong, but I heard that credit unions charge no fees and a much lower APR for foreign purchases.
Anyone else have thoughts on this?
May 23rd, 2009, 10:49 AM
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I have a Visa branded ATM/Debit card from my CU and one from my bank (BofA). On my last trip to Italy in 2007 these were the charges:
1. Foreign exchange fee: both charged 1% - No difference
2. Out of network ATM usage fee: My CU charged nothing for the 1st 8 withdrawals then $1/wd thereafter, , BofA charged me nothing (@ Banco di Roma) for the 4 times I used it. Most people report that BofA charges $5/out of network usage so I'm not sure why they didn't charge me. Maybe they're just nice.
YMMV.
1. Foreign exchange fee: both charged 1% - No difference
2. Out of network ATM usage fee: My CU charged nothing for the 1st 8 withdrawals then $1/wd thereafter, , BofA charged me nothing (@ Banco di Roma) for the 4 times I used it. Most people report that BofA charges $5/out of network usage so I'm not sure why they didn't charge me. Maybe they're just nice.
YMMV.
May 23rd, 2009, 10:50 AM
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I'm in L.A. and I know that my credit union, connected with my job, doesn't charge a fee to use their ATM/debit card overseas. I called and asked them. However, I've personally never used my American-issued ATM/debit card overseas. I also have a Wells Fargo ATM/debit card and I know that they charge $5.00 per transaction.
I'm usually in Bangkok once or twice a year and I decided to try to use my American-issued credit union ATM/debit card to pay my rent for my entire stay and it was declined. I had personally gone into the credit union, right before I left home, and told them that I wanted to use it. They said fine and noted all the info in their computer. I was told that all was in order.
Then I get to Bangkok, and tried to check into my serviced apartment and the debit card was declined. I had no idea why. Thank goodness I had my AmExp card, lots of traveler's checks which are super easy and inexpensive to cash there, lots of cash also very easy to exchange, and my Thai bank ATM/debit card. So, I was able to pay the $1500. But, the $2,000 that I had tranferred,from my bank to my credit union, and specifically for that trip was now not accessible which left me not in the best of moods to say the least.
After arriving home, I called my credit union and was pretty ticked. I was told that Thailand was one of the countries on their high fraud list and that no ATM/debit card issued by their credit union could be used there. So, I then asked why it had been approved! The person then said that she hadn't realized that Bangkok was in Thailand when she told me that it had been approved for use. Since I was only going to be in Bangkok, I told her only Bangkok, in order to try to protect the card as I do with anywhere that I travel too, including the U.S.
So, if you go the credit union route, make sure that the country or countries, wherever in the world that you might travel to, don't have your country of travel on a high fraud list. Before the trip back to Paris, last month, I called the credit union again to see if it was OK to use the card in Paris (FRANCE) I told them, not Paris, Texas, and they said that it was. I only took it along in case of dire emergency. I didn't need to use it though. Happy Travels!
I'm usually in Bangkok once or twice a year and I decided to try to use my American-issued credit union ATM/debit card to pay my rent for my entire stay and it was declined. I had personally gone into the credit union, right before I left home, and told them that I wanted to use it. They said fine and noted all the info in their computer. I was told that all was in order.
Then I get to Bangkok, and tried to check into my serviced apartment and the debit card was declined. I had no idea why. Thank goodness I had my AmExp card, lots of traveler's checks which are super easy and inexpensive to cash there, lots of cash also very easy to exchange, and my Thai bank ATM/debit card. So, I was able to pay the $1500. But, the $2,000 that I had tranferred,from my bank to my credit union, and specifically for that trip was now not accessible which left me not in the best of moods to say the least.
After arriving home, I called my credit union and was pretty ticked. I was told that Thailand was one of the countries on their high fraud list and that no ATM/debit card issued by their credit union could be used there. So, I then asked why it had been approved! The person then said that she hadn't realized that Bangkok was in Thailand when she told me that it had been approved for use. Since I was only going to be in Bangkok, I told her only Bangkok, in order to try to protect the card as I do with anywhere that I travel too, including the U.S.
So, if you go the credit union route, make sure that the country or countries, wherever in the world that you might travel to, don't have your country of travel on a high fraud list. Before the trip back to Paris, last month, I called the credit union again to see if it was OK to use the card in Paris (FRANCE) I told them, not Paris, Texas, and they said that it was. I only took it along in case of dire emergency. I didn't need to use it though. Happy Travels!
May 23rd, 2009, 11:04 AM
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[sigh]
Charles Schwab Investor Checking:
Foreign exchange markup: 0%
Visa International Service Assessment: absorbed by Schwab
ATM transaction fee: $0
Foreign ATM fees: rebated
Annual fee for card: $0
Total cost of spending USD in Europe: $0
Charles Schwab Investor Checking:
Foreign exchange markup: 0%
Visa International Service Assessment: absorbed by Schwab
ATM transaction fee: $0
Foreign ATM fees: rebated
Annual fee for card: $0
Total cost of spending USD in Europe: $0
May 23rd, 2009, 11:39 AM
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May 23rd, 2009, 11:52 AM
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HENRY: Thank you so much for this link!
ROBESPIERRE: Thank you! I hope that I can find Charles Schwab ATMs easily in my neighborhood in Los Angeles.
GUENMAI: They didn't know where Bangkok was?! (rolls eyes)
ROBESPIERRE: Thank you! I hope that I can find Charles Schwab ATMs easily in my neighborhood in Los Angeles.
GUENMAI: They didn't know where Bangkok was?! (rolls eyes)
May 23rd, 2009, 12:50 PM
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NIKKI: Thanks! I missed that... transferring banks always stresses me out, but I feel I really should get on the ball.
By the way, to all you SCHWAB account-holders: Overall are they a good bank for people who just want the free checking account? For example, besides the travelling-abroad stuff, do you find that they try to nickel-and-dime you for anything with hidden fees?
Is customer service good? As well as Schwab's online and telepone banking?
Right now it seems a toss-up to me whether to switch to Schwab or one of the credit unions (like Wescom or USAA). Thanks a lot!
By the way, to all you SCHWAB account-holders: Overall are they a good bank for people who just want the free checking account? For example, besides the travelling-abroad stuff, do you find that they try to nickel-and-dime you for anything with hidden fees?
Is customer service good? As well as Schwab's online and telepone banking?
Right now it seems a toss-up to me whether to switch to Schwab or one of the credit unions (like Wescom or USAA). Thanks a lot!
May 23rd, 2009, 01:40 PM
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Hello bettyo, USAA is not a credit union.
But if you are a member of USAA (meaning you have at least one insurance policy with them) you can acquire (assuming your credit rating meets their standards) a Visa and or Master Card with them and the fee for using it outside of the US is only 1% with no additional fees. If you have an account with their bank you can acquire of course an ATM card and I believe you are entitled to something like at least 10 withdrawals a month using the ATM card and any fee that the ATM charges you is reimbursed by the USAA bank.
But if you are a member of USAA (meaning you have at least one insurance policy with them) you can acquire (assuming your credit rating meets their standards) a Visa and or Master Card with them and the fee for using it outside of the US is only 1% with no additional fees. If you have an account with their bank you can acquire of course an ATM card and I believe you are entitled to something like at least 10 withdrawals a month using the ATM card and any fee that the ATM charges you is reimbursed by the USAA bank.
May 23rd, 2009, 02:08 PM
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Thanks for clearing that up, LoveItaly!
It makes more sense if I go with Schwab.
Also I'm just worried that credit unions don't have the same customer service that banks do... like if you have a problem abroad and need to reach someone immediately. Cheers!
It makes more sense if I go with Schwab.
Also I'm just worried that credit unions don't have the same customer service that banks do... like if you have a problem abroad and need to reach someone immediately. Cheers!
May 23rd, 2009, 02:20 PM
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My credit union, sfpd credit union, san francisco, doesn't charge any fees except the 1% conversion. We get great service from them, better than our other bank, US bank.
I just wanted to alert others that banks change their policies. I needed money and used my US bank atm card which I carry as the back up card, thinking that the last time I used it there was also a 1% charge, well,when I got my statement they had changed their policy and dinged me 3%, quite a shock on $1000! Moral of the story, check with your bank BEFORE you travel.
I just wanted to alert others that banks change their policies. I needed money and used my US bank atm card which I carry as the back up card, thinking that the last time I used it there was also a 1% charge, well,when I got my statement they had changed their policy and dinged me 3%, quite a shock on $1000! Moral of the story, check with your bank BEFORE you travel.
May 23rd, 2009, 02:33 PM
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Hey, this might work for me too. The office is around the corner from where I work. So, according to web site, you need $1,000 deposit? Kind of dumb about how this works - am I investing in stock (where money can decline?). Can someone please explain to me how this works? thanks!
May 23rd, 2009, 02:54 PM
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Hi bettyo70 !
Schwab - customer service extremely professional, however you must call during normal business hours.
No hidden fees. They don't have any ATMs. Go to any ATM and use the Schwab visa debit card and at the end of the month Schwab refunds you the fee.
Just like Robespierre says!
Schwab - customer service extremely professional, however you must call during normal business hours.
No hidden fees. They don't have any ATMs. Go to any ATM and use the Schwab visa debit card and at the end of the month Schwab refunds you the fee.
Just like Robespierre says!
May 23rd, 2009, 02:56 PM
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Also it takes a few days when you make deposits, and you can only make check deposits. They don't accept cash.
They will deposit it into your brokerage account and you have to link it to your investors checking account in order to withdraw from the ATM.
They will deposit it into your brokerage account and you have to link it to your investors checking account in order to withdraw from the ATM.
