Subscribe to our RSS FeedI’m not planning on opening bank accounts in Argentina and I’m going to bring my U.S. issued credit cards with me, so there were a few things I really needed to consider:
- Access to cash
- ATM and credit card fees
- Depositing checks in the U.S.
Access to Cash
While researching how to best get cash and pay bills when there, I found a lot of discussion on ATMs in Argentina starting to restrict access to cash. After some research, it seems that the U.S. Embassy in Buenos Aires sent this as part of a newsletter to expats living there:
9. Update on ATM Withdrawal Limits
Last July [2007], Visa debit- and credit-card holders got a surprise when ATM machines restricted withdrawal limits to about USD $100. MasterCard cardholders got the same surprise in late March. ACS has contacted card companies, banks and Argentine government officials to determine the cause of the restriction. So far, no clear reason for the change has emerged and no party is willing to take credit for this inconvenience to clients.
The good news, however, is that in response to receiving hundreds of complaints both Visa and MasterCard have doubled their withdrawal limits to USD $200. Both companies also explain that cardholders are free to make multiple successive withdrawals at the same machine up to their bank’s daily withdrawal limit. ACS continues to research the issue to determine the exact cause for the restriction on international ATM withdrawals and learn how much international cardholders pay in ATM fees as the teller machines do not normally provide this information.
So the good news is that you should still be able to access the cash you need even if you have to make multiple withdrawals. The bad news is that your fees could be increased for making multiple withdrawals.
ATM and Credit Card Fees
I decided that the best thing for me would be to reduce the fees I would pay by as much as possible. Luckily, the Flyerguide Wiki has a complete guide to foreign credit card and ATM fees. After reviewing the list, I decided to open the Schwab High Yield Investor Checking account. Signing up was easy, and they provide online banking, mail-in deposit envelopes and free checks. The account currently pays a 2.01% APY and also provides unlimited ATM fee rebates. According to the Flyerguide Wiki:
[Schwab] reimburses unlimited ATM-owner fees and many users report 0% forex fees applied by Schwab and customer service reports the same. Will not refund additional fees, on top of the transaction fees, applied by bank or atm you are withdrawing from. Confirmed on phone July 2008.
I also opened up an online savings account at Countrywide Bank because they were paying the highest interest rate (3.55%) and simply linked that to Schwab. The nice thing about Countrywide is that you can link up to five accounts which means you can use them as a middle-man to transfer money between your accounts if you have more than one. I’m using this to transfer money between my personal and business accounts when needed (business account -> Countrywide -> Schwab account). Transfers are free but take one business day to complete. After this, you can close any other accounts that you do not need.
Depositing Checks in the U.S.
I was also waiting on some checks that didn’t quite make it before I left. Since I’m using Earth Class Mail (ECM), I know the checks will be forwarded to my online mail box, but since ECM does not yet have electronic check deposit (coming this year) I’ll have to have ECM forward those checks to my mom to mail in for me. I found out that checks do not need a signature to be deposited, just the words “FOR DEPOSIT ONLY” and the account number on the back, so while this is a bit inconvenient, it should work.
That pretty much sums it up.
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15 responses so far ↓
1 Elsie Blondet // Jul 30, 2008 at 10:50 am
Dave and Mersal:
I hope this catches you before you hop on the plane. I have linked to your wonderful blog on my own blog roll and today I am making a piece profiling your blog. The information that you have provided is a wonderful source of information.
Just wanted to tell you. Buen viaje.
Nannette
2 Currency Exchanges and Rates // Aug 8, 2008 at 8:02 pm
[...] our Schwab ATM card we’re getting AR $3.0436 to the U.S. dollar with no ATM [...]
3 Henry // Aug 12, 2008 at 7:24 pm
Extremely useful info. I’m leaving for Buenos Aires (Palermo Soho, we’ll be neighbors!) tomorrow, and finding this blog has made life a million times easier. Oh, and I live in New York (we were neighbors!). Thanks for sharing all the useful advice!
4 DaVe // Aug 12, 2008 at 10:12 pm
Henry – glad the information was useful. We’ll post more as we find out things, and we’ll see you in BsAs soon!
5 2008: The Year in Review | Discover Buenos Aires // Jan 5, 2009 at 5:10 pm
[...] Checking Account: The Schwab checking account has bee great. Not only is in a free acount that pays interest, they do not charge any ATM fees, [...]
6 Katie // Jan 5, 2009 at 11:45 pm
Hi Dave and Mersal,
I noticed you referenced an expat newsletter produced by the U.S. Embassy in BsAs. I found the newsletter on the embassy website but no way to sign up for it to be delivered by email. I couldn’t even find a way to notify the embassy that I’ll be living in Argentina, although it’s mentioned on the embassy’s site. Maybe I’m blind. Can you point the way?
Thanks!
7 DaVe // Jan 6, 2009 at 7:54 pm
Katie – here is the link to sign up for their alerts:
http://travel.state.gov/travel/tips/registration/registration_1186.html
8 Katie // Jan 8, 2009 at 12:03 am
Thanks for the link, Dave!
9 Heather // Mar 25, 2009 at 1:26 am
It's hard sorting through all the fees. Does Schwab have a percentage fee for converting dollars to pesos?
thanks for the tip. We are traveling to B.A. in a couple of weeks.
10 Heather // Mar 25, 2009 at 1:47 am
I read more closely and realized that they usually don't. Thanks for such a great site!
11 DaVe // Mar 25, 2009 at 3:04 pm
Glad you like the site! Schwab has been great and gives near the exchange rate. You could also bring dollars and convert them here. http://www.dolarhoy.com lists the exchange rate of all the major exchange places.
12 Henry // May 19, 2009 at 11:09 pm
Schwab's Even Better Than I Expected
The Schwab checking account has been fantastic, allowing us fee-free access to our cash. Every time I talk to someone who gets hit with foreign exchange rates and local and home-bank ATM fees, I realize how great a gift our Schwab checking account has been.
But it's even better than I had thought. Opening a Schwab checking account requires also opening a brokerage account (no extra hassle or expense involved . . . you can leave it unfunded). I ignored it these last 10 months. But then I realized what I'd been missing out on — no fee, no load index funds that have, the industry's lowest (by far) expense ratios AND requirements for minimum balances/transactions. Better than everything else by a long shot. You can see what the hubbub is about here, on this Fatwallet Finance thread: http://www.fatwallet.com/forums/finance/922659/
13 Dan // Feb 16, 2010 at 11:41 pm
I've noticed that a few months ago, LINK ATMs locally started charging a withdrawal fee of almost 12 pesos per up to $1000, which are deducted directly from your account. I have a savings account with State Farm Bank that also refunds ATM fees up to 10 dollars a month, but I was just wondering if the Schwab option refunds these new fees as well. Also, where does Schwab allow you to use the ATM card? Does it have to be a LINK ATM or any ATM?
Thanks for a great post with lots of useful info.
I will look into the Earth Class Mail as well.
Thanks.
Dan
14 Henry // Feb 17, 2010 at 1:17 pm
My experience is that Schwab has been refunding these new fees as well. As for where it can be used, it appears that it can be used at any ATM.
15 DaVe // Feb 17, 2010 at 5:38 pm
Yes, Schwab has been refunding these fees with no limits per month. You can use your ATM card at any machine too.
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