Among the challenges for expatriates is managing their finances while living overseas. Expats have to deal with the ever-changing exchange rate, and different fees and commissions charged by exchange houses and banks. In addition, economists predict that the U.S. dollar will remain low against the world’s major currencies for several years to come, which makes it even more important to wisely manage your funds while traveling.
There are numerous ways for sending money abroad such as bank transfers and ATM machines.
Once you are situated in your new location, you will want to open a bank account at a local bank. Look for one that provides on-line banking so you can check your account balance and transfer funds without visiting the branch location. Be aware that on-line banking may only be available in the local language however.
Once you have a bank account, you can arrange wire transfers of funds from a US bank to your foreign bank. Banks charge fees for doing this - usually around $30 or so. Therefore, you don't want to transfer small amounts. A better option for day to day needs may be a cash machine (ATM).
With thousands of ATMs in almost every corner of the globe, the most economical way to get money while living overseas for a short time is to use your check or debit card, drawing funds directly from your U.S. account.
Mastercard/Eurocard/Cirrus, Maestro, Visa/Plus, Visa Electron, and (to a lesser degree) American Express cards are accepted at almost every ATM around the world. Compared to exchanging cash, ATM withdrawals have the advantage that you can withdraw funds 24 hours a day at most locations and that you get a better exchange rate than for cash.
Debit cards (check cards) with the Visa or Mastercard logo can also be used for purchases just like credit cards, but they don’t generally offer the same purchase protection against theft or fraud. On the other hand, U.S. credit card companies charge a small percentage for overseas purchases, which can add up for large purchases or a long-term overseas stay.
US banks also charge fees for withdrawal of cash at ATMs in foreign countries.
Note that with some of your cards, a daily limit may be set on cash withdrawals. This is for your (and your bank's) protection, however, it can catch you off guard if you don't plan ahead. Likewise, banks in some foreign countries also set a daily limit on how much local currency can be withdrawn.
