Withdraw money from the ATM without extra costs
For many, withdrawing money from an ATM without the bank on duty charging them money is an odyssey, other consumers, however, have it easier. But why this? Why are there people who have it easier to withdraw money from the ATM without extra costs than others? We explain it to you below.
Whether or not an ATM of another entity charges you for taking your money will depend on the agreement that your own financial institution maintains with other banks or savings banks.
When you choose a bank, in addition to reading the fine print that has to do with the commissions for account maintenance, passbook, debit or credit card, etc., you must find out whether you should also assume the commissions that other entities that own ATMs when you try to withdraw money from them.
That is, the latter may charge commissions for the use of their ATMs, but that extra cost will not fall directly on you, but on the issuing entity of your card, the question is whether your entity is going to assume the payment of that commission or if you is going to move it.
Everything will depend on whether your bank or savings bank has agreements with other groups, its company policy, the degree of connection you maintain, the amount you withdraw and where you are.
For example, some entities do not charge commissions as long as you withdraw money in a place where their group does not have a presence and others set minimum and maximum amounts to withdraw if you want to avoid the commission.
Withdraw money abroad, another sing
In general, withdrawing money from an ATM abroad can be very expensive.
Most of the entities charge high commissions in this sense and they do it in two different ways: applying a percentage on the total amount withdrawn (this commission varies if our destination belongs or not to the European Union and can reach 5.5 %) or an exchange rate set in advance.
Do not forget that this amount should be added to the rate applied by the entity that owns the ATM, called the “ surcharge fee ”, and the rate corresponding to the currency exchange, if we are in a country that operates with a currency other than the our. As you can see, the flight attendants are adding up.
The cheapest options to pay abroad are:
- Pay with a credit or debit card directly at the establishment , since the commissions applied are usually lower than those of withdrawing money at an ATM (normally between 2.5% or 3% of the total purchase) and, in some cases , even null. Card payments usually compensate, although we must make sure to increase the card limit. If you are going to get money there because you have no other option, better to do it with a debit card than a credit card, they usually carry lower commissions.
- Carry cash from Spain in the currency of the destination country , hard cash that we will have previously changed in our bank, before traveling. Why? Because it depends on the country or the area of the same to which you go on vacation, you will find serious difficulties to change our currency, not to mention the long lines.
If you do it in the country of vacation, in an exchange house (that is reliable or you will be scammed), at the airport or in a hotel, the additional commissions could be abusive if you are not careful.
By exchanging currency previously in your trusted branch in Spain, you will be assuming the exchange rate and the commissions applicable by your entity, if there are any, although, normally, they are much lower than those that may apply to you in the country of destination, unless you are lucky and find the right place at the right time.
The disadvantages, that you will travel with cash on top, which is not highly recommended, and that you will have to adjust the amount you change as much as possible, since otherwise, when you return to Spain, you will have to change the remaining currency again and you will surely lose more money in the operation.
What is clear is that leaving our country with a credit card will give you a lot of security when traveling. You never know what can happen to you and if you will need a large sum of money to alleviate, for example, an unexpected medical admission to a private hospital in the destination country.