Currency Conversion
 

My son will be in Spain for 6 weeks, then in Rome/Italy for an additional 2 weeks. He was told he should open a checking account at Capital One Bank because they don't charge for conversions. Does anyone have any suggestions on how he should handle his money for 2 months? Do they use debit cards over there?

An ATM card is the best way to go. I got mine from my local credit union in Houston and have used it to withdraw euros at bank ATM machines in both Spain and Italy. Some US banks do charge a fee (like say $1.50) for each withdrawal at a foreign bank ATM.
The conversion rate can vary from hour to hour & is always in favor of the overseas processing bank.
Also it is a good idea to alert your bank ahead of time that it will be used out of the country.

Agreed on all of that. Personally, I would not go to the trouble of opening a separate checking account - just plan ahead. Most places will take debit/credit cards, so he won't need tons of cash every day. Also, some banks have reciprocal agreements with overseas banks, so I'd call your bank and ask them. For example, Bank of America has agreements with banks in the UK and France, I believe, along with a few others, so as long as you withdraw from one of those bank's ATMs, there is no fee.

He should get an ATM only card and use that. Be sure to notify the bank of the dates that he will be traveling so they don't block the card. I opened a joint account with my daughter (she lived in Spain for six months) before she was old enough for her own that we use for travel. We both can deal with the bank if one is home and the other traveling should there be a problem such as the account being frozen or more money needed.

Thank you so much for your helpful comments. We are venturing into unknown territories abroad and appreciate all comments. One other question. We are AT&T customers and wonder what is the cheapest way to communicate - not only from there to the US, but his sister will meet up with him and wondered how they can call each other if they get separated.

AT&T can work overseas (as opposed to Verizon, for example), but he'll need to have a phone that will work. And it won't be cheap enough for daily use, I don't think. The UK has tons of pay-as-you-go phone options; you might look into Spanish companies that do that (afraid I can't help with details).

But as far as calling home while he's there, Skype (skype.com) is fantastic for that. Both of you can download it and then talk for free (especially great if one or both of you have a webcam, though that's not required). You can also call "real" phone numbers for a small fee.

To playit safe they should each have at least one credit card (different cards) and an ATM card - since it's always possible for one system to be down short-term. They should also have a small amount of cash (we typically take about $200) that can be changed if necessary (but don't unless necessary since the rte of exchange will be awful).

As for phones - most will work in europe with the proper card inserted - but it depends on exactly what they have. Sometimes it's easiest just to get cheap dispoable phones with limited time on the spot.

The cell phone systems throughout europe use GSM technology. Our AT&T network is GSM. You can purchase a chip (SIM card)at stores in Spain which you swap out with your AT&T SIM card.
You have to verify that your USA cell phone is multi band and have AT&T unlock it for you before you leave.
I use a Motorola RAZR which has been unlocked.
Also you are not charged any minutes (air time) for receiving cell phone calls.
For calling from europe to the USA on landlines, one can buy calling cards which have a low per minute cost.

I opened a free checking acct at CapOne for travel purposes. They do not assess any foreign currency conversion from use of Debit card. They did charge me $1.50 for ATM withdrawals in Europe. I believe they may refund ATM fees if asked, although I forgot all about trying that.

Hi Blueeyedgirl,

I'm from Spain. Yes, the Bank System in Spain is standard.
Absolutely ALL business allow ANY debit card as payment method and you will find ATMs without any problem. Perhaps it's easier to find an ATM here ;-)