New Fee Free Bank Account For Travellers
A Fee Free Account from Citibank
For the first time Australians have the option of a fee free everyday bank account that can be used overseas without any charges attached. Citibank has just introduced the Citibank Plus everyday account, with no monthly fees for local banking, and better yet, no fees for overseas transactions as well.
This is a promising change for Australian accounts; it will be interesting to see if the other banks follow suit. Previously the best option for Aussie travellers using their own money through a local account overseas was the NAB Gold Account – which has fee free overseas transactions but a hefty $10.00 monthly fee for the account itself. This is the option I’ve been using for a while but I’ll soon be switching to Citibank thanks to this new offering.
The Citibank account is a Visa Debit, which just means you can use your card at any place that accepts Visa and through the worldwide ATM network.
As an idea of the savings on this account compared to the major banks everyday options for overseas transactions;
So you are taking out USD$200.00 from your Aussie bank account while overseas, assuming the US dollar is at parity with the Aussie$ (just for example). This will currently cost you -
- Commonwealth Bank: $6.00 plus 3% of the transaction value. Transaction cost $12.00AUD!!
- ANZ :$5.00 plus 3% of the transaction value. Transaction cost $11.00AUD
These fees are ridiculous. Even on a short trip they can really stack up, and often people will take out large amounts in one hit to avoid repeat fees; it’s obviously much safer to be able to carry smaller amounts and not worry about ATM fees.
Some details of the new account pulled from Citbank’s website 08/11/2011..
Fee free, no catches.Fee free ATM withdrawals at over 3,000 Citibank, Westpac, St George, Bank of Melbourne and Bank SA ATMs around Australia.
- Visa Debit Card for online, domestic and overseas purchases.
- Fee free use of your Citibank Visa Debit Card around the globe to make in store purchases or withdraw cash at any ATM
- Free international money transfers from Australia to any account, anywhere in the world
So this new Citibank Plus account is worth checking out and will hopefully start a trend away from the exorbitant fees currently charged on similar accounts in Australia. If you need a credit card the other fee free option is the 28 Degrees Mastercard, which has no overseas transaction fees but a high rate if you get into debt on the card.
It’s not the most exciting travel topic, but getting this part of the trip sorted before you go will save you lots and take away a major worry every time you need to take out money.
Category: Ed's Travel Blog, Travel Blog, Travel Money, Travel News
Thanks for this financial update I am currently NAB Gold Debit as a result of your previous info.
May change to Citibank but have found NAB very helpful
I was with NAB also and was pretty happy with the service, though not sure its worth 10 bucks a month with the newer option
Citibank no good for travelling has 2.5% conversion fee
Not this account!