I want to let you in on the little known Checking linked to brokerage account with debit card from Charles Schwab. This debit card/ checking account includes:
Most of us use debit cards to at least pull cash from ATMs occasionally. If you have been in the miles and points game for long, you will almost never pay for anything directly with your bank debit card because you will be using your points earning credit card of course! Even in the USA we have to deal with ATM withdrawal fees of $1.5 - $6.00 depending on the ATM if you are not using your banks ATM.
For those that have traveled outside the USA before you probably know about foreign transaction fees. Many times these fees are an extra 3% of the amount withdrawn. Some banks also charge a flat fee as well for each ATM withdrawal. On top of that you also have to pay the local ATM fee which are often very expensive.
I know in Thailand the standard fee is 150 baht which is $4.66 USD. For example if you have a Bank of America debit card and you withdraw the equivalent of $300 USD in Thailand you will pay a $5 fee plus 3% of $300 so $9.00 plus the $4.66 local ATM fee for a total of $18.66 to withdraw $300 or 6.22%. Talk about ridiculous!
Credit Unions usually charge less foreign transaction fees than traditional banks. Visa and Mastercard charge 1 - 2% which is generally just passed on to credit union members without a markup. Traditional banks on the other hand add even more fees.
My first time in Thailand I had a debit card that charged a 2% foreign transaction fee plus the ATM fees to withdraw money so I was paying 2% of $300 so $6.00 plus $4.66 ATM for a total of $10.66 for a 3.55% which is still really high when you do not have to pay anything!
Outside the USA credit card usage is not nearly as popular. Especially in less developed countries, credit cards or debit cards may not be accepted at all for point of sales transactions in most places. This makes withdrawing money from ATMs with debit cards necessary. Some people like to bring USD and exchange them once they arrive in the foreign country which is an option, but you will often pay currency exchanges a hefty spread of 1% - 10% for the service.
How much can the Charles Schwab Debit Card save you? I travel a lot. I will often withdraw $2,500 per month from ATMs. This is very dependent on the country. Before I signed up for the Charles Schwab Debit Card I was paying about 3.5% in fees for my ATM withdrawals. On $2,500 of ATM withdrawals a month I saved $87.50 per month. This adds up!
There is also the added benefit of not being concerned about how much to withdraw from ATMs. If I do not pull enough the first time, I'll just find another ATM and withdraw more money no having to worry about paying more fees. I also do not have to withdraw as much cash each time to maximize the high cost local ATM fees. I'll be safer carrying less cash. I can also know that I received the most competitive exchange rate.
So if you are not sold yet on the Charles Schwab Debit Card you can get a free $100 bonus for signing up if you deposit $10,000 in the first 45 days. Not everybody can deposit that much, but if you are able to that is an extra 1% on your money. You this link to sign up for the $100 bonus.
Note: I signed up for Charles Schwab Debit Card a couple of weeks before my last international trip. You have to remember to transfer funds out of the brokerage account into the checking account before you will be mailed the debit card. When I added funds to the account they were deposited in the the brokerage account first.
- No monthly fees
- No account minimums
- Unlimited fee rebates from any ATM worldwide
- No foreign transaction fees
- Free bill pay on Schwab.com and Schwab Mobile
- Apply for Schwab Mobile Deposit™ to deposit checks from anywhere
- Free standard checks and a Visa® Platinum debit card once the account has been funded.
- FDIC insurance up to $250,0003
- A linked Schwab One® brokerage account with no fees or minimums
What this means: If you travel internationally and withdraw money from an ATM you will have no foreign transaction fees and the ATM fee charged by the local ATM will be refunded at the beginning of each month. You also receive a competitive exchange rate better than you will receive at money changers. Even if you travel in the USA you will have all ATM fees reimbursed.
In my opinion this is hands down the best debit card to have for international travel. If you plan to travel internationally for any extended period of time this is a great money saver and stress reliever.
Most of us use debit cards to at least pull cash from ATMs occasionally. If you have been in the miles and points game for long, you will almost never pay for anything directly with your bank debit card because you will be using your points earning credit card of course! Even in the USA we have to deal with ATM withdrawal fees of $1.5 - $6.00 depending on the ATM if you are not using your banks ATM.
For those that have traveled outside the USA before you probably know about foreign transaction fees. Many times these fees are an extra 3% of the amount withdrawn. Some banks also charge a flat fee as well for each ATM withdrawal. On top of that you also have to pay the local ATM fee which are often very expensive.
I know in Thailand the standard fee is 150 baht which is $4.66 USD. For example if you have a Bank of America debit card and you withdraw the equivalent of $300 USD in Thailand you will pay a $5 fee plus 3% of $300 so $9.00 plus the $4.66 local ATM fee for a total of $18.66 to withdraw $300 or 6.22%. Talk about ridiculous!
Credit Unions usually charge less foreign transaction fees than traditional banks. Visa and Mastercard charge 1 - 2% which is generally just passed on to credit union members without a markup. Traditional banks on the other hand add even more fees.
My first time in Thailand I had a debit card that charged a 2% foreign transaction fee plus the ATM fees to withdraw money so I was paying 2% of $300 so $6.00 plus $4.66 ATM for a total of $10.66 for a 3.55% which is still really high when you do not have to pay anything!
Outside the USA credit card usage is not nearly as popular. Especially in less developed countries, credit cards or debit cards may not be accepted at all for point of sales transactions in most places. This makes withdrawing money from ATMs with debit cards necessary. Some people like to bring USD and exchange them once they arrive in the foreign country which is an option, but you will often pay currency exchanges a hefty spread of 1% - 10% for the service.
How much can the Charles Schwab Debit Card save you? I travel a lot. I will often withdraw $2,500 per month from ATMs. This is very dependent on the country. Before I signed up for the Charles Schwab Debit Card I was paying about 3.5% in fees for my ATM withdrawals. On $2,500 of ATM withdrawals a month I saved $87.50 per month. This adds up!
There is also the added benefit of not being concerned about how much to withdraw from ATMs. If I do not pull enough the first time, I'll just find another ATM and withdraw more money no having to worry about paying more fees. I also do not have to withdraw as much cash each time to maximize the high cost local ATM fees. I'll be safer carrying less cash. I can also know that I received the most competitive exchange rate.
So if you are not sold yet on the Charles Schwab Debit Card you can get a free $100 bonus for signing up if you deposit $10,000 in the first 45 days. Not everybody can deposit that much, but if you are able to that is an extra 1% on your money. You this link to sign up for the $100 bonus.
Note: I signed up for Charles Schwab Debit Card a couple of weeks before my last international trip. You have to remember to transfer funds out of the brokerage account into the checking account before you will be mailed the debit card. When I added funds to the account they were deposited in the the brokerage account first.
FEES Charged by Different Financial Institutions
| Institution | Fee Structure | |
|---|---|---|
| ATM Withdrawal | POS Purchase | |
| Banks | ||
| Ally Bank | 1% of amount | 1% of purchase |
| Bank of America | $5 + 3% of amount | 3% of purchase |
| BB&T | $5 + 3% of amount | 3% of purchase |
| BBVA Compass | $2 + 1% of amount | 3% of purchase |
| BMO Harris Bank | $2 + 3% of amount | 3% of purchase |
| Charles Schwab Bank | N/A | N/A |
| Chase | $5 + 3% of amount | 3% of purchase |
| Citibank | $2 + 3% of amount | 3% of purchase |
| Citizens Bank | $3 + 3% of amount | 3% of purchase |
| Comerica | $5 + 3% of amount | 3% of purchase |
| EverBank | 1% of amount | 1% of purchase |
| Fifth Third | $5 + 3% of amount | 3% of purchase |
| HSBC | $2.50 + 3% of amount | 3% of purchase |
| Capital One 360 | N/A | N/A |
| KeyBank | $2.50 + 1% of amount | 1% of amount |
| M&T Bank | Greater of $5 or 3% of amount | 3% of purchase |
| PNC | $5 | 3% of purchase |
| Regions | $5 | 3% of purchase |
| SunTrust | $5 + 3% of amount | 3% of purchase |
| TD Bank | $3 | N/A |
| TIAA Direct | $2 + 2% of amount | 2% of purchase |
| USAA | $0* + 1% of amount *Up to $15 of other banks’ charges refunded each month. No USAA fee for the first 10 withdrawals each month. $2 USAA fee applies to subsequent withdrawals. | 1% of purchase |
| US Bank | $2.50 + 3% of amount | 3% of purchase |
| Wells Fargo | $5 | 3% of purchase |
| Credit Unions | ||
| Affinity Federal Credit Union | $1.50 + 1% of amount | 1% of purchase |
| Alaska USA Federal Credit Union | 1% of amount | 1% of purchase |
| Alliant Credit Union | 1% of amount | 1% of purchase |
| America First Credit Union | $1.50 + 1% of amount | 1% of purchase |
| Boeing Employees Credit Union (BECU) | 1% of amount | 1% of purchase |
| Desert Schools Federal Credit Union | $2 | 1% of purchase |
| Digital Federal Credit Union | $1.50 + 2% of amount | 2% of purchase |
| First Tech Federal Credit Union | $2 + 1% of amount | 1% of purchase |
| Kinecta Federal Credit Union | $1 + 1% of amount | 1% of purchase |
| Logix Federal Credit Union | $1.95 + 1% of amount | 1% of purchase |
| Mountain America Credit Union | $2.50 + 1% of amount | 1% of purchase |
| Municipal Credit Union | $1.50 + 1% of amount | 1% of purchase |
| Navy Federal Credit Union | $1 + 1% of amount | 1% of purchase |
| Northwest Federal Credit Union | $1 | N/A |
| Patelco Credit Union | $1.75 + 2% of amount | 2% of purchase |
| Pennsylvania State Employees Credit Union (PSECU) | 1% of amount | 1% of purchase |
| Pentagon Federal Credit Union | $1.50 + 2% of amount | 2% of purchase |
| Randolph-Brooks Federal Credit Union | $1 | N/A |
| Redstone Federal Credit Union | $1 + 1% of amount | 1% of purchase |
| SchoolsFirst Federal Credit Union | $1 + 1% of amount | 1% of purchase |
| Security Service Federal Credit Union | $1.50 + 1% of amount | 1% of purchase |
| SEFCU | $1.25 + 1% of amount | 1% of purchase |
| Space Coast Credit Union | $1.50 + 1% of amount | 1% of purchase |
| State Employees’ Credit Union | $0.75 + 1% of amount | 1% of purchase |
| Suncoast Schools Federal Credit Union | $1.50 + 1% of amount | 1% of purchase |
| The Golden 1 Credit Union | $1.50 + 1% of amount | 1% of purchase |
It proved to be Very helpful to me and I am sure to all the commentators here! We sign up with dlrcollectionagency.com collection agency for business
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