Hi:
Well, further to my post a few days ago, I recommend you open a bank account within the Global ATM Alliance. The primary reason for this is that when you withdraw money from any of these banks around the world you will not be charged an ATM fee. This can potentially save you quite a bit of money, especially if you are travelling a long time.
It is slightly more complicated that this however. Transactions are processed through Visa or Mastercard and they administer a 1% foreign exchange fee. Some of the banks also tack on other fees - up to 3%, so although you pay no local atm fee you still will be paying the foreign exchange fee.
Some simply move to an international bank, such as HSBC, which has branches all over the world. I notice, however, that they have just increased their foreign exchange fee to 3% from 1%, as of November, 2007.
Also be aware of a"dynamic currency conversion fee". This works for the benefit of the merchant. You have the right to be billed in the currency of your choice, according to Visa. If you are in another country and the bill comes in say U.S. dollars, you can assume the rate at which they converted to U.S. dollars is much higher. Always pay in the country currency.
Below are the banks in the Global ATM Alliance.
Barclays (United Kingdom)
Bank of America (United States)
BNP Paribas (France)
China Construction Bank (China)
Deutsche Bank (Germany)
Santander Serfin (Mexico)
Scotiabank (Canada)
Westpac (Australia and New Zealand
This list expands to other countries. Google Global ATM Alliance for more information.
Mahara
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