Best Banks Charging No Foreign Transaction Fees
Joy Wallet is advertiser-supported: we may earn compensation from the products and offers mentioned in this article. However, any expressed opinions are our own and aren't influenced by compensation. To read our full disclosure, click here.
You’ve probably heard about foreign transaction fees before. They’re usually associated with credit cards and can be a main driving factor when choosing a credit card. Credit cards have their time and place, but there are also checking accounts and debit cards that can help ease the financial burden of traveling. Here’s what you need to know and some banks and financial institutions to consider.
Jump To
Overview of the best banks with no foreign transaction fees
Bank | Best for |
Betterment | Online, no-fee checking |
Capital One | Interest-earning checking account |
Charles Schwab | High-yield checking with a free brokerage account |
Chime | Automatic savings |
Varo | Zelle within the banking app |
Wise | Multiple currencies and low exchange rates |
Best banks with no foreign transaction fees
Betterment
Betterment is an online financial institution that offers a hassle-free checking account. A Betterment Checking account can be opened as a solo or joint account. This account does not earn an annual percentage yield (APY) but offers other savings opportunities.
This is a no-fee account, meaning it does not charge a monthly or overdraft fee. There is also no minimum balance requirement. Betterment itself does not charge an ATM fee or a foreign transaction fee. Additionally, Betterment reimburses merchant ATM fees and Visa’s 1% foreign transaction fee worldwide to make the account truly fee-free.
Another perk of a Betterment Checking account is earning cash back on everyday purchases. The account comes with a Betterment Visa Debit Card that can be used worldwide. When using the card to make purchases at participating merchants, the purchase can earn cash back that will be deposited into the checking account. The participating merchants and their cash-back offerings may vary, but brands like Costco and Adidas are current participants.
Betterment is not a traditional bank, but Betterment Checking is FDIC-insured for up to $250K per depositor. Accountholders can also change their PIN or lock their debit card with the Betterment mobile app for additional protection.
- Fees: None
- Where to enroll: Betterment
Start saving in 3 simple steps
1. Use Capital One Shopping for Free. It takes seconds to add Capital One Shopping and works with all major browsers.
2. Shop as you normally do. Capital One Shopping's magic works quietly in the background, searching for discounts on your purchase.
3. Save effortlessly. Ready to save? Just click Capital One Shopping and the best deal discovered will be applied to your cart.
Capital One
Capital One is one of the largest banks in the country and as such, has several accounts to choose from. The Capital One 360 Checking Account is a great fee-free option with plenty of perks. No minimum initial deposit is required to open an account, making it easily accessible for most people.
This account is considered fee-free because it does not charge a maintenance fee, ATM fee, foreign transaction fee, or overdraft fee. Capital One offers a few overdraft options that you can choose from. This can include automatically denying transactions that cost more than what you have in your checking account and automatically transferring funds from another Captial One account.
Some of the other perks of this account offer more flexibility with your money. One option is an early paycheck, which allows you to get paid up to two days sooner than usual if you sign up for direct deposits into your 360 Checking account. Another unique feature of this account is its ability to earn interest on your balance. The interest rates and APY are variable, but as of June 2023, the APY is 0.10%.
Capital One offers the ability to do your banking online or in person. You can manage your account anytime using the mobile app or visit a Capital One branch to open and manage your account. Additionally, you can add cash to your 360 Checking account at any CVS location.
- Fees: None
- Where to enroll: Capital One
Charles Schwab
Charles Schwab is a good option for people interested in low-cost investment products. Not only does it offer commission-free online trading, but it also offers an interest-earning checking account. The Schwab Bank Investor Checking account is its interest-earning account that can be easily combined with other banking and investment products to manage your finances as efficiently as possible.
There is no minimum required to open a Schwab Bank Investor Checking account. There are also no fees, meaning no foreign transaction fees and unlimited ATM fee rebates. Additionally, Charles Schwab offers a security guarantee which covers losses in any Schwab account due to unauthorized activity.
The Investor Checking account earns 0.45% APY on the checking account balance as of June 2023. The rate is variable and applicable to any sized balance. One thing to be aware of is that when you open an Investor Checking account, you’ll also open a separate brokerage account. This brokerage account has no monthly fees; you can transfer funds between the two accounts for free.
Charles Schwab offers a mobile app that makes managing all your related accounts easy. You can use the app to review your accounts and transfer funds. It also lets you lock and unlock your card and receive transaction alerts.
- Fees: None
- Where to enroll: Charles Schwab
Chime
Chime is an online banking platform that offers a convenient no-fee checking account. This online-only institution provides access to its features through its mobile app. Though it may not be ideal for people who like to do their banking in person, there are plenty of perks to consider.
The checking account offered by Chime has no traditional banking fees. This includes no monthly fees and no foreign transaction fees. The Chime debit card can be used in most countries where Visa is accepted as long as you turn on the international transaction fees in the app.
Another key feature of Chime is its effort to eliminate overdraft fees through a free service called SpotMe. This service allows you to overdraft your account by up to $200, and checking account members can qualify if they receive at least $200 in direct deposits within the past 34 days. Even if you don’t use SpotMe, Chime helps you avoid overdraft fees by declining transactions if you don’t have enough money in your account to cover your purchase.
True to its fee-free commitment, Chime offers over 60,000 fee-free ATMs throughout the United States. This includes ATM locations in popular stores such as Walgreens, 7-Eleven, and Target. Chime also offers an automatic savings feature with your checking account that any member can turn on to allow Chime to use their checking account to build savings.
- Fees: None
- Where to enroll: Chime
Varo Bank
Varo Bank’s online bank account offers several features to enhance the online banking experience. As an online institution, there are no local branches where members can go to handle their banking business in person. Instead, Varo Bank uses the money that could be spent maintaining physical structures to eliminate fees and make banking work better for account holders.
The main benefit of banking with Varo is the ease of a fee-free account. There are no monthly or foreign transaction fees to worry about. The bank will also decline or return transactions if you have insufficient funds in your account instead of charging an overdraft fee.
The only fee to worry about is if you intend to make cash withdrawals from an ATM internationally. Varo Bank does not charge a fee to use U.S.-based Allpoint ATMs. However, it charges a $3 fee for out-of-network ATMs and all international ATMs.
Despite the possible ATM fees, Varo Bank stands out with its Zelle integration. Zelle allows you to send money to and receive money from other individuals safely. In most cases, you must make Zelle transactions within the Zelle app. However, Varo customers can use Zelle within the Varo app, taking an extra step out of transferring money.
- Fees: $3 fee for out-of-network and international ATM withdrawals
- Where to enroll: Varo
Wise
Wise offers an account ideal for people who frequently travel outside the country. You can use your account to make purchases in over 40 currencies. The financial institution charges as little as possible for transfers and exchanges of currency, always using the live exchange rate.
While the account can be beneficial for frequent travelers, some fees associated with the count might not be worth it for infrequent travelers. This includes a 2% fee to use the Wise card to fund e-wallets and external accounts that can be converted to cash. There are also ATM fees if you withdraw more than $100 per month.
Wise shines when it comes to converting currencies. It’s free to receive money in several currencies, including AUD, CAD, and EUR. You can also hold more than 50 currencies in your Wise account. The converting rate to exchange currencies starts at 0.43% and varies depending on the currency.
For a digital banking experience that can cross borders, it’s hard to beat Wise. Before you open an account, you should familiarize yourself with its fees and benefits to ensure it’s the right option. But with no monthly fees or minimum balances, it does offer plenty of convenience and savings opportunities in exchange for its multi-currency functionality.
- Fees: ATM fees if you withdraw more than $100 per month
- Where to enroll: Wise
Summary of best banks with no foreign transaction fees
Bank | Minimum balance | Other fees | Additional benefits |
Betterment | None | None | Cash back on debit card purchases at participating merchants |
Capital One | None | None | Early payday; Interest-earning checking account |
Charles Schwab | None | None | Interest-earning; connection to free online brokerage account |
Chime | None | None | SpotMe overdraft protection; automatic savings feature |
Varo | None | $3 ATM fee at out-of-network and international ATMs | Zelle can be used within the Varo app |
Wise | None | ATM fees for withdrawals over $100 per month and some other, less common fees | Available in a wide variety of countries and currencies |
Start saving in 3 simple steps
1. Use Capital One Shopping for Free. It takes seconds to add Capital One Shopping and works with all major browsers.
2. Shop as you normally do. Capital One Shopping's magic works quietly in the background, searching for discounts on your purchase.
3. Save effortlessly. Ready to save? Just click Capital One Shopping and the best deal discovered will be applied to your cart.
FAQs
What are foreign transaction fees?
Foreign transaction fees are fees that a bank or financial institution charges when you use your card to purchase a foreign currency. They can apply in two different situations — when you use your card to make purchases in a foreign country and if you use your card to make an online purchase that is processed in the currency of a foreign country. Foreign ATM fees are another factor that you might want to keep in mind. These are not necessarily foreign transaction fees, but they can apply if you use an ATM outside the United States. When picking the best travel card, you should consider how you intend to use it abroad. Some cards have more travel benefits than others, especially when you consider where you travel and how you use your funds when you’re traveling.
Is it better to use a debit card or credit card abroad?
Generally speaking, credit cards tend to have higher foreign transaction fees than debit cards. However, it’s important to read the fine print on both types of cards to see which accounts would benefit you most. You should keep in mind that each bank and card has its own set of fees and features. If you know you’ll be traveling to certain areas, you might want to check to see which cards and accounts fit your needs. On top of those considerations, remember that debit cards pull from your bank account, whereas credit cards are something you need to pay back. Credit cards can have an annual fee as well as other fees. Credit cards also charge an annual percentage rate, a fixed or variable APR.
How do I choose an account?
Opening bank accounts is relatively easy, but choosing an account can be difficult. There are so many options out there, but that doesn’t mean every account is right for every person. It all comes down to what you want to get out of your account and the features and/or requirements that an account has. For example, some bank accounts have requirements that need to be met at account opening. This means you must have a certain amount of money available to deposit into the new account as soon as you open it. Some banks and financial institutions might also require you to open a checking and savings account. Before you open an account, you should have an idea of what your financial goals are. The big picture can help you narrow down the best options for you in the short term. When it comes to banks and foreign transaction fees in particular, you should consider the areas you travel to and how you use money while you’re out of the country.
What are multicurrency accounts?
A multicurrency bank account is an account that can hold more than one currency. This is not a standard feature of most bank accounts, but they are relatively easy to find because several financial institutions offer them. Multicurrency accounts are ideal for people who travel outside of the country. Not only does it make traveling and exchanging currencies easier, but it also helps accountholders save money in the long run. Each bank is different, so multicurrency accounts are not the same across the board. If there are areas you travel to often or aspire to travel to, you should think about this before you open an account.
Why should you use a bank with no foreign transaction fees?
Unfortunately, opening and maintaining a bank account can incur unforeseen fees. Foreign transaction fees are common with both debit and credit cards. If you don’t intend to travel, an account with no foreign transaction fees might not be your priority. Even so, banks with no foreign transaction fees often come with other no-fee benefits that make them a good option for non-travelers.
The bottom line
When you think about foreign transaction fees, the first thing that comes to mind might be a credit card. However, debit cards and checking accounts are also important considerations when traveling outside the country. Some banks offer accounts and debit cards with benefits that are hugely beneficial for travelers.
As with any financial decision, it’s important to consider what you need from your financial product. Some accounts can sound wonderful — and they probably are — but if your lifestyle doesn’t use those benefits, it won’t do much for you. Fortunately, with the number of financial institutions on the market today, there are plenty of options, so you can take your time and find the one that is the best fit for you.
Joy Wallet is an independent publisher and comparison service, not an investment advisor, financial advisor, loan broker, insurance producer, or insurance broker. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. They are not intended to provide investment advice. Joy Wallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. We encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Featured estimates are based on past market performance, and past performance is not a guarantee of future performance.
Our site doesn’t feature every company or financial product available on the market. We are compensated by our partners, which may influence which products we review and write about (and where those products appear on our site), but it in no way affects our recommendations or advice. Our editorials are grounded on independent research. Our partners cannot pay us to guarantee favorable reviews of their products or services.
We value your privacy. We work with trusted partners to provide relevant advertising based on information about your use of Joy Wallet’s and third-party websites and applications. This includes, but is not limited to, sharing information about your web browsing activities with Meta (Facebook) and Google. All of the web browsing information that is shared is anonymized. To learn more, click on our Privacy Policy link.
Images appearing across JoyWallet are courtesy of shutterstock.com.
Writer
Ashley Hart is a lead copywriter and digital marketing expert covering finance, law, real estate, music, entertainment, health and wellness.
Share this article
