Your Debit Card is Costing You Money

I recently realized that I was paying my bank a lot of money for ATM fees. In the past 12 months, I paid Chase bank $30 in ATM fees. This means that I also paid about another $30 to the ATMs I used to process the transactions.

I understand that $60 may not seem like a lot to some, but if we can avoid paying it, why not?

Also, if you are the type that travels a lot, you probably use ATMs more often. Without noticing, you could be spending a few hundred dollars in fees each year. Those small 1-3% fees add up pretty quickly.

I decided to do some digging to see how I could get around this, and I actually found online banks that provide you with debit cards that reimburse all ATM fees. In fact, they do more than just that.

I recently discovered the Schwab Bank High Yield Investor Checking Account. Here is what they offer:

• Unlimited ATM fee rebates worldwide.
• No account minimums or fees.
• No foreign transaction fees.
• 0.03% on your checking account balance.

I plan to use this account going forward for all my checking account needs. It is going to save me from all the ATM fees I have been paying for the past 6 years with Chase.

In addition, I will definitely be using it when I travel abroad to save on exchange rates and foreign transaction fees.

If you are traveling abroad, where cash is king, you might find yourself looking for currency exchange. Do not use them!

You are better off using the Schwab debit card at any bank. You will save yourself 3% in foreign transaction fees and ATM fees, and you will get a better exchange rate than if you used a currency exchange kiosk.

I suppose the moral of this week's email is to help you save money on any unnecessary fees that come with using a regular debit card. Don't be prey to the bank.

Enjoy your week!

Momo

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