Europe - How to avoid bank charges on atm?

[moonfairysgp]

hi all,

wondering if anyone can help me on this? i don't want to bring too much cash on my trip to europe, scared kena robbed.

i remember someone posted something on how to save the bank atm fees when withdrawing money via atm there, but i can't seem to find that thread anymore.

if i'm not wrong, she said she opened a ready credit account here, then deposited money into that account. so when she withdraw cash using her citibank creditcard or was it a readycredit card?, there were no charges and no interest (since she already pre-deposited money so not considered loan).

anyone can help? or anybody working in banks can help clear up?

also, i was told that using credit card overseas got charges? i tot it was based on the bank exchange rate, got other charges meh?

thanks!

 

[rtan]

For credit cards, you are at the mercy of the bank. Some banks build in an extra few percent when doing the conversion. For example, when I charge to my DBS Black Card (AMEX), I get a lousy rate of about 1.32 when in Switzerland. But my Citibank Mastercard gets a much better rate of 1.30.

Personally I do not think that it is a problem carrying large amounts of cash. I have done it all the time when I travel in Europe. The main fear is pickpockets, not armed robbery. So as long as you wear a neck pouch, you can keep your valuables there, and you're safe. I carried 800 Swiss Francs and almost 1000 Euros when I was just recently there for my honeymoon; no problems at all, even when in Venice; which has large crowds of tourists (and crowds usually mean pickpockets and touts).

Sorry that I did not answer your question about opening a bank acount in Europe; I don't know how to go about doing it, and I do not think it is necessary. Another alternative of course is travellers cheques, but I never bothered with those either.

 

[cuclainne]

If you are staying at a hotel, perhaps you might want to consider keeping your money in the safe and converting a small sum at a time, to keep you going.

That was what I did when I was in Stockholm - my husband's apartment is on the ground floor of the building, the glass windows had no grilles on them and just a wooden door separates us from the inside to the outside world. I kept my money in a bag next to the couch in the living room - really, I never even considered that it was risky doing that. I only brought out a small sum of money to change, when I need it and wait until it's close to depleting before converting more.

When I was in London/ Belfast for a week, I only brought about S$900 with me to convert at one-go and I kept the money in a small pouch in my backpack. No one tried to rummage through my bag or cut it open. My husband didn't change money cos he just withdrew cash from the ATM when he needs it.

 

[rtan]

Just a little warning: hotel room safes are not all that safe. Some hotel staff know how to open it; they need to in case of a hotel guest emergency. Sometimes a hotel guest needs to leave the hotel quickly and he/she forgot the safe combination. The hotel staff would be able to open it very quickly and easily. There is usually a back door for every safe.

Safer to leave it at the hotel reception safe deposit box.

Personally I just carried all the money with me in my neck pouch; the safest. Heh.

 

[moonfairysgp]

hi raymond & cuclainne,

thanks for the input.

raymond, i think you misunderstood me. i meant opening a ready credit account in singapore and drawing out using the atm, supposedly there are no charges.....

anyway, really can't find the thread. will try and call citibank to clear up. if no such thing, then i guess i'll just have to get charged by the bank....don't want to carry too much cash. scared lah.....too many stories of pple losing cash/passports and stuff. don't want to risk ruining my holiday.

as for travellers checks, too troublesome....also the rates aren't that great.

 

[makino]

I think if you draw money through your ready credit, the rates are scarier than if you just sign with a normal credit card. I never used ready credit before cos I have the impression that the interest rate is not cheap. But if you use normal card, you only get a less attractive exchange rate (based on bank rate). For e.g. if exchangers are having 1 pound to S$2.8, the bank rate could be 1 pound to $3. Correct me if I'm wrong pls.

 

[midas]

hi tsukushi,

the ready credit interest rates are normally lower than the 24% annual rates of credit cards...tats why ready credit was introduced, to offer loan at lower rates than credit cards so customers would borrow from them instead.
the ATM charges for credit card cash withdrawal are insane...they charge u an admin fee on the spot whenever u use the ATM (its $20 last time i used it many yrs ago, not sure hw much now). if u use the ATM twice, you'll be charged twice. And interest rates is charged on a daily basis from the day u draw out the money...imagine how much u owe the bank by the time u come back from the europe tour.

moonfairy,

update us on the ready credit thingy after u call up citibank ok? me curious too...coz i think if i deposit money in the account, its considered tat they owe me money, and i get paid interest leh. duno if i draw money is means i'm taking out my own money instead of borrowing money from them. let's see wat the citibank says..

 

[makino]

Hi midas,

Does that mean whenever you charge into your ready credit acct the interest starts counting until you clear your bills? But I think if you've deposited money into your acct first, then they just deduct from there without extra charge. Don't know whether this applies to ATM also..

I know for credit card, there's no extra charge if you clear the debts when they send u the bill. But if there is outstanding debts, the interest will start rolling.

 

[pebsb]

i withdrew cash in Europe using ATM. Your ATM card must have the "cirrus" or "Maestro" symbol.

Diff banks charge diff rates for withdrawl. POSB/DBS is cheapest at flat rate of $x? (cant recall) per transaction. Other banks charge a % of your withdrawl amt, min at $x? Call your bank to check.

However, some ATM machines in europe only accept 4 digit pin (our ATM card use 6 digit pin). So I also had my credit card linked to my SAVINGS a/c (as the credit card pin can be 4 digit). When U withdraw cash using your credit card (which is linked to your savings a/c), always choose to withdraw from your savings a/c, and not credit ac (else U be charged interest as its treated as a credit loan).

For most of the cities, I had no issues with using my 6pin ATM card with the exception of 1 city. In tat city, I used my credit card to withdraw cash. But it didnt give me an option to choose the bank a/c (savings or credit), and I was charged interest. When I returned, I called my bank and explained the situation & got a waiver on the interest rate - only had to pay the transaction fee.

Bank's conversion rate is not as favorable. But I prefer it to bringing cash around, esp when the cities I vistied didnt use EURO, and most of it, you need to change to money within the city. The money changer in some of these cities charge ridiculous exchange rate & service fee (up to 10%).

American express travellers cheque are also charged transaction fee, and you can only encash them at Amex outlets, and they're not as common as ATM machines.

Always calculate how much you need, and make 1 withdrawl (min paying transaction fee).

 

[midas]

hi tsukushi,

no, i meant tat CREDIT CARDS charges u admin fees and daily interest for cash advances (drawing cash from ATM), u can call up the banks and confirm with them or try wasting money by drawing out cash at any local ATM. it is daylight robbery, so i suggest u dun use credit cards at ATM unless its last resort..

as for ready credit i hv not tried so i'm not sure...would also like to find out if i hv deposit in the account, it may be no interest incurred. anyone called citibank yet? can update us?

 

[rtan]

It can't be so bad that even locals in Europe cannot carry large amounts of cash around. Perhaps we Singaporeans are just not prepared; Singapore is so safe so we don't know how to take care of our own belongings properly. With the correct precautions, one is perfectly safe. Don't flash your money around and hide it inside your neck pouch; who will know that you have lots of money?

But of course that's just me; since I have stayed in Europe before.

There is also the problem that some thieves prey around ATMs. And finding ATMs is not always that easy; not like in Singapore where you have a POSB/DBS ATM around almost every corner.

Each approach has its pros and cons.

IMHO, the best way is to carry small amounts of cash for emergency, and use your credit card to pay for all transactions that allow credit card payment. You may not get the best bank rates; but the difference is not so much (e.g. 1.31 versus 1.32).

Note that some smaller hotels charge cheaper rates if you pay entirely by cash.

 

[orosalind]

Hi,

Sori to intrude. I am desparately trying to seek help / advise on VAT refund.

Wonder if anyone here has did any research on the procedure to claim VAT refund in Paris?

I am flying over to Paris soon and estimated large sum of purchases (cos my frens entrusted me to buy some expensive items back for them). Wanna know if there is any diff in terms of procedure if I made the puchases in cash vs card and also, what is the pocedure for claiming.

Appreciate if someone cld help if you know the ans. Thanks.

 

[busybeee9]

Find A Bank That Charges No ATM Fees

If you use a small bank with only a few ATM machines, or a large bank with ATM machines that aren't convenient to your home/school/work, then why not change?

There are financial institutions that no longer charge ATM fees.

Where do you find them? At credit unions. Find one in your town! If you don't know of one, then go to the Credit Union National Association (www.cuna.org) and use their search engine to find one in your area.

In an effort to attract new business, some of the huge banks are offering reimbursement for ATM fees.

What a deal!

Check out Wachovia (www.wachovia.com) and Citibank (www.citi.com) -- both have ATM reimbursement programs as of April, 2008.

Some small, regional banks are now offering "No ATM Fee" programs. Find them by googling "Find A Bank That Charges No ATM Fees" to get more information.

After all, you wouldn't let a human teller charge you to withdraw your own money, why would you let a machine get away with it?

http://www.onlinebankingz.com