Is Wise the BEST Bank for Travelers?

When it comes to traveling, figuring out where you are getting your money from is very important.  And not all banks are equal when it comes to perks for the avid traveler.  So which bank is the best bank for travelers? 

As a frequently traveler myself, I am always on the hunt for the best bank for me.  And with the end of the pandemic seemingly just around the corner, I am preparing to get back into the traveling swing.

And I know you are probably preparing for your next vacation too.  And boy do you need one!  I know I do!

I usually travel at least once a year and this past year has been rough.  So we all deserve a little break and some much needed vacation.

But the question that everyone faces when traveling abroad is what to do about money.  How are they going to get it? Which card is best to use? Should you use a card or cash only?

If you are concerned about getting the best exchange rate, you will definitely want to use ATMs to get your cash instead of exchanging it in the airport.

Better yet, if you had a card that you could use that instantly gave you the best rate and didn't charge you a foreign exchange fee, that would be awesome.

Well, that might be the case with the introduction of the Wise Debit Card. But does it give you everything you need as a traveler?  Is it the best all around bank for travelers?

Let's take a deep dive and find out!  

But first, what should you be looking for in a bank anyway?  

What Travelers Should Look For in a Bank

As someone who travels often, I've learned how important having access to your money is.  You definitely don't want to be stuck in the middle of a jungle in Thailand with no coins.

So now we need to find a good bank.  But what does a good bank for frequent travelers look like?

Here are some things that you should be looking for in the bank you plan on using for your travels.

• Large # of ATMs available for use
• Reimbursement of or No ATM fees
• No Monthly fees
• No Foreign Transaction fees
• Good Online Banking Experience
• Contactless Debit Card
• No Debit Fees
• Mobile Wallet Support
• Ability to send and receive money
• Good Interest Rate (nice but not necessary)

Some of these points are pretty self explanatory.  I mean, if you are going to be using the card abroad naturally you'll want a card that does not have foreign transaction fees.  

Otherwise things could get real pricey, real fast.

But one thing that too many people are not aware of is that you do not and should not be paying ATM fees.  I mean.  Unless you want to.  And I can't imagine anyone who would.

There are plenty of banks nowadays that do not charge ATM fees or at least reimburse those fees (Here's looking at you Schwab.).  And that should be a top priority for you.

Why?  Because if you want to get the best exchange rate and not pay all those added fees from airport money exchanges, you are going to need to take out money from the ATM.  

As for having a good interest rate, that is nice but not entirely necessary if your main purpose is to use this bank for traveling.  

In which case, your money wont be staying in the account long enough for the interest rate to even matter.  But, still, it is a good perk to be aware of.

The Best Bank for Travelers

So, what is the best bank for traveling around the world? Wise? Maybe.

Wise, formerly known as Transferwise, jump started the world of fin tech back in 2011.  It had its humble slash amazing beginnings as a wire transfer service helping individuals send and receive money internationally and domestically.

And the best part was that you could send money at the interbank exchange rates and the fees were super low.  I LOVE transferring my money via Wise.

And, quietly, to this day, it is still the BEST way to send money internationally.

But since its beginnings Wise has grown by leaps and bounds and now has a wide arrange of banking features to offer.  And most of it, benefits those of us who love to travel as well as my fellow expats and digital nomads.

It has officially become the preferred way to send money by expats but I foresee with all its latest additions it potentially becoming the preferred bank for travelers, solopreneurs, and small business owners as well.

Does Wise Pass the Test?

* Any ATM that accepts Mastercard/Visa.

** 2 Transactions free per month. Withdrawal limits vary by card issuing country. Be aware that some ATMs will charge their own operating fee.

It would seem that the Wise debit card passes all the tests except for its non-existent interest rate.  

Update: Wise now offers interest for 3 currencies through Wise Assets - the British pound, the Euro, and the US dollar.  It does come with a fee though!

While it would be nice to have your money earning something while it's being held, that's what your bank is for.  And, in all honesty, this shouldn't be your bank bank and should only be used for traveling. 

(Well, that, and holding money in various currencies as a hedge.)

So, technically, the money you put in this account won't be there for long.

The Benefits of Using Wise as a Traveler

So, what exactly are the perks of using wise as your bank while traveling?  Well, I'm glad you asked.

Easy to Freeze/Unfreeze Your Card

Should you lose your card or should your card get stolen, you can easily go online or onto the Wise app and freeze your card.

Then when you are ready to use it again, you can do the same to unfreeze it.  Easy Peezy.

If necessary it is also easy to order a new card on the website and app as well.

Free Withdrawals from ATMs

With the Wise debit card, you are able to get 2 free withdrawals every month.  Cha-ching.

There are however limits to the amount of money you can withdraw.  This depends on the country where your card was issued.

Be sure to check their website for more information.

Real Exchange Rates and Low Fees

Another reason Wise is a good bank for travelers is because it gives you the best exchange rates when withdrawing from the ATM and converting to different currencies.

Also, their fees are very low and they are very upfront about how much it will cost.  The same can't be said for most other financial institutions.

Can Easily Send and Receive Money

A big issue when traveling can be your ability to send and receive money from where you are.  But with Wise you can use your debit card or transfer money via bank transfer to your account.

Spend in Multiple Currencies

For me this is the biggest reason I think Wise is the best bank for travelers.  Because, with Wise, you can hold your money in different currencies.

Wise allows you to convert and hold your money in up to 40+ different currencies which would each be given their own separate account. 

Then when you are you need to make a purchase, it automatically pulls from the correct account with no added charges.

And the best part is there is no charge for holding money in these accounts.  Totally free.  And you get your own account number, IBAN/Routing number, etc.

Now, to convert your cash from one currency to the next, Wise does charge a small fee.  

For me, when I learned this I was a little mad because y'all now I don't like fees.  But when I thought about it, I realized that in the long run this would probably save me money.

Because if I am not using my Wise debit card when I travel, I would have to use my other bank card which means they are going to charge a conversion rate and probably include some hidden fees I am not aware of.

But with Wise I know my fee upfront, then when I use my card to make purchases I wont be charged anything.  Unlike with my regular bank card, which would charge me a fee for every purchase.

The Downside of Wise

There can be no upside without a downside even for this blessing of a bank.

One thing lacking with this bank is that there is no interest rate for holding your money in an account with them.  

Though the average rate for bank accounts in the US is 0.04% that is still a wee bit better than nothing.

Another downside with Wise is that the card can't be used in all countries.  It can, however, be used in 200 of them.  But you'd want to make sure that the country that you are traveling to is on the list.

Further, you'll need to keep in mind that there is a limit to how much you can withdraw from the ATM for free.

Last Minute Tips Before You Travel

Before you grab that passport and run out the door keep a few of these times in mind.

1. )  Only keep the money you plan to spend in your account connected to your debit card.  Better yet, transfer in the amount you plan to use daily.

That way should you lose your card or it gets stolen.  You won't have lost all of your savings.

2. )  When you are dealing with your bank accounts and other sensitive information, don't use public wifi.  And if you have to, take steps to encrypt the data i.e. using a VPN, etc.

3.)  If you do decide to bring other bank cards with you, be sure to tell your bank where you are going so that they won't freeze your card because they see suspicious activity.

4.)  Be careful of card readers placed on ATMs.  Look for anything that seems like it was added to the machine and give it a tug.  If it comes out, it probably wasn't supposed to be there in the first place.

All in All 

Is Wise the best bank for travelers? 

Well, that all depends on your specific needs.  Me, personally, I love it! I can hold money in 50+ currencies so when I use my card I'm never charged any extra fees.

It's easy to use, easily accessible online and with their app, and you get the best exchange rates and the lowest fees around.  Not to mention, transferring money is super easy, super cheap, and super quick with Wise.

The one thing I don't like though is that there is a limit on how much you can withdraw for free.  So you definitely can't go somewhere expensive and use the ATM.  

But as long as the country allows you to make debit card purchases, you'll be fine.

If you're just traveling around Asia, the limit shouldn't be a problem as most things don't cost much to begin with.

All in all, if it was up to me, I'd say, "Yes, Wise really is the best bank for travelers."

What do you think?