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Credit card US ATM charges correction
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JoeSchmoe
Posts: 4 Newbie
in Credit cards
Hi Martin - what a superb website! With reference to this foreign card use page, I've got one comment on it, with a moneysaving suggestion:
So here's the tip: get a Citibank UK sterling current account and US dollar savings account - both are free. You can move money between the accounts with a difference from xe.com's mid-market exchange rate of about 0.75% - which also makes this the cheapest currency conversion I know. Link the Visa Debit card to the US dollar savings account. Then, you can withdraw money from any US ATM for free. The amount you withdraw is the amount taken out of your US dollar account - with no ATM fees. Since it's a Visa Debit card, you can of course also use it as payment in shops - charged in dollars, debited in dollars.
I lived off this trick when I lived in New York for 2 years :j Cheers for the site - can't wait to explore more!
Practically all US ATMs specify that the $1.50-$1.75 charge is to US cardholders only - so if you use a British card, you are not charged it. You can see this on your bank statement - the withdrawn amount in dollars very rarely includes the ATM fee.Charge III. Overseas Bank Cash Machine Charge (debit and credit cards)
Many banks overseas, especially in the USA, charge an additional fee for withdrawing cash.
So here's the tip: get a Citibank UK sterling current account and US dollar savings account - both are free. You can move money between the accounts with a difference from xe.com's mid-market exchange rate of about 0.75% - which also makes this the cheapest currency conversion I know. Link the Visa Debit card to the US dollar savings account. Then, you can withdraw money from any US ATM for free. The amount you withdraw is the amount taken out of your US dollar account - with no ATM fees. Since it's a Visa Debit card, you can of course also use it as payment in shops - charged in dollars, debited in dollars.
I lived off this trick when I lived in New York for 2 years :j Cheers for the site - can't wait to explore more!
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Very valuable information if it is correct:T . Some othe posters did warn before about US ATM charges, but they did not tell about any difference between US and foreign cards. I have never been in US and for me it is difficult to believe that US cash machines distinguish US and foreign cards.JoeSchmoe wrote:Practically all US ATMs specify that the $1.50-$1.75 charge is to US cardholders only - so if you use a British card, you are not charged it. You can see this on your bank statement - the withdrawn amount in dollars very rarely includes the ATM fee. ...
Still do not understand the advantage of your scheme as against simple Nationwide £s account with debit or cash card.So here's the tip: ...
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When I have been to the States I found the majority of ATM's didn't charge me, but some did, although the charge was stated before I was able to withdraw the money.
One problem with the Citibank account is you need to maintain a balance of £2,000 and I think the interest rates are not that good on the account. Nationwide is still the best solution, as Grumbler has said."An eye for an eye leaves the whole world blind" - Mahatma Gandhi0 -
Usually the ATM doesn't distinguish and asks you to authorise the ATM charge - it only shows up on your statement. Although recently I wasn't prompted to authorise the ATM charge on about half the charging ATMs I used, which indicates those machines must have known it was a non-US card.grumbler wrote:Very valuable information if it is correct:T . Some othe posters did warne before about US ATM charges, but they did not tell about any difference between US and foreign cards. I have never been in US and for me it is difficult to believe that US cash machines distinguish US and foreign cards.
As I said, even if it tells you there's a charge, 90%+ of the time you're not actually charged it when you look on your statement.pin wrote:When I have been to the States I found the majority of ATM's didn't charge me, but some did, although the charge was stated before I was able to withdraw the money.
Yeah, you're right - I've been so used to doing it that I haven't thought about that option. I guess the only advantage is that you know exactly how much you can spend as you know the exchange rate (i.e. there isn't one). I do have a Nationwide credit card for foreign use, and since Citibank went into decline earlier this decade I only use that Citibank account for US dollar stuff nowadays. Perhaps it's time to close Citibank and open a Nationwide current account just for foreign currency withdrawals - advantage being it's great for all currencies, not just US$. Cheers!grumbler wrote:Still do not understand the advantage of your scheme as against simple Nationwide £s account with debit or cash card.
Not so for a US dollar savings account - only for a US dollar current account.pin wrote:One problem with the Citibank account is you need to maintain a balance of £2,0000 -
Anyone have details on the citibank rate - it seemed to me it is only updated daily? (I use Eur). Also although the ctibank current a/c pays v poor interest the 'direct current account' pays a decnet 4.5% - you don't get a check book but it is possible to keep your standard current a/c as well just for chequesI think....0
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"An eye for an eye leaves the whole world blind" - Mahatma Gandhi0
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