I'm a frequent traveler, and opening the right checking account saved me $1,413 last year

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Don't waste money paying foreign transaction fees on your checking account.

• You might be racking up foreign transaction fees while you travel without even realizing it.
• The Schwab Bank High Yield Investor Checking Account and Ally Interest Checking Account are two of the best checking accounts for frequent travelers.
• Both are lower in fees than most checking accounts and bear interest, and the Schwab account has no foreign transaction fees, free ATMs worldwide, and unlimited ATM fee rebates.
• If you travel internationally often - and even if you don't - you should consider opening one of these checking accounts. Using my Schwab debit card while abroad saves me over $1,000 a year.

Between being in a relationship with a foreigner, working remotely, and having an incurable case of the travel bug, I spend a lot of time overseas. In fact, for the past three years, I've spent more time on foreign soil than I have on US ground.

The cost of traveling so frequently adds up, and the last thing I want to be spending money on is banking fees. But when I first started traveling, I was still using the debit card I got when I was 16, and as soon as I went abroad, random fees started showing up on my bank statements. If you're anything like me, you'd probably like to know how to avoid all of those international ATM and foreign transaction fees so you can put that money toward your next plane ticket.

Luckily, a new wave of online banks now offer accounts that minimize fees to almost $0, thanks to the money they save by not operating brick-and-mortar locations. The best part for jet setters like me is that a new account can be opened and funded completely online in a matter of minutes.

Switching to one of these low-fee checking accounts and using the debit cards that come with them could save you hundreds of dollars every year, especially if you travel internationally.

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Fees to watch out for while abroad

You probably know there are fees associated with using your debit card internationally, but do you know exactly what they are? Depending on your checking account, you might be paying several different fees each time you swipe your plastic in another country.

Some common fees associated with using a debit card abroad include:

• International ATM fees: Many banks will charge you a fee to withdraw money at any out-of-network ATM, whether domestic or international. Often, the ATM fee while abroad is higher than what you're charged domestically.
• ATM fees imposed by ATM owners: On top of fees charged by your own bank, most ATM owners charge their own fee if you're using an out-of-network ATM. Because your bank likely doesn't have many, if any, in-network ATMs abroad, these will add up.
• Currency conversion fees: Some transactions, when completed in a foreign currency, will incur a currency conversion fee. This is common with international ATM transactions, where you end up paying both a flat-rate ATM fee and a percentage of the amount withdrawn to convert the currency.
• Foreign transaction fees: Finally, most debit cards charge foreign transaction fees on every transaction you complete abroad, usually ranging from 1% to 3%.

When I first traveled internationally, I didn't open a checking account geared toward travel abroad. After using my old debit card a few times, I realized that the fees were astronomical. One day on my bank statement showed a $5.00 fee, a $2.50 fee, a $14.01 fee, and a $4.00 fee, all associated with the same ATM transaction.

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I called the bank thinking it was an error. After all, I'd just been charged $25 to take money out of an ATM one time. But they explained that the $2.50 fee was for doing a balance inquiry, the $5.00 fee was for international ATM transactions, the $14.01 fee was a 3% fee charged on the total amount withdrawn, and finally, the $4.00 fee was charged by the ATM owner. It would have been cheaper to pay with my card than withdraw cash, but each transaction still would have incurred a 3% foreign transaction fee.

What to look for in a travel-friendly checking account

Clearly, it was time for a new, travel-friendly checking account. Here are some features I looked for in a checking account that would minimize my fees while traveling abroad:

• No monthly service fees or minimum balance requirements
• No foreign transaction fees
• No currency conversion fees
• Free ATMs worldwide
• Unlimited ATM fee rebates worldwide
• Interest-bearing

I also wanted something I could open online since I travel so often. I ended up going with Charles Schwab Bank's High Yield Investor Checking account, and it took me about 15 minutes to apply and open an account online. The account name sounds fancy, but it's just a regular checking account and doesn't require you to have a minimum balance. However, if you don't already have a Schwab One Brokerage account, you'll have to open one to waive the monthly fee for the account - though you are not required to invest anything in the brokerage account.  

Not only does this checking account offer free ATMs worldwide and unlimited ATM fee rebates worldwide, but it also doesn't charge foreign transaction fees, which is rare for a free checking account. Plus, it earns a little bit of interest - not much, but it's fun to watch your money make money. And, did I mention this account is completely free if you have a Schwab brokerage account? It's hard to find a checking account as packed with perks as this one that doesn't charge a monthly maintenance fee.

How I saved $1,413 last year by switching my checking account

My situation is on the extreme end, given that I spend so much time abroad. I also pay for most things in cash, including a house that I rent overseas and a used car that I purchased in cash, so my ATM usage is heavy. However, if you save even a fraction of what I saved in 2018, the few minutes it takes to open a new checking account online is well worth your time.

In 2018, I spent an average of around $1,500 per month on purchases abroad that would normally incur an international transaction fee. By switching from a card with a 3% foreign transaction fee to one with no foreign transaction fee, I saved about $540 over the course of one year.

I saved even more on ATM fees. In total, I completed 54 international ATM transactions and 8 domestic ATM transactions. The amount of money I withdrew while abroad in 2018 came out to $14,046.55. This means that I would have spent $290 on flat-rate ATM fees charged by my bank and $421.40 on 3% currency conversion fees without my new debit card. In total, I saved just over $711. Most of the ATMs where I travel charge a fee ranging from $2.00 to $5.00, so I also ended up receiving $162 in ATM rebates last year.

When you add it all up, opening a new checking account online saved me about $1,413 in one year.

Best checking accounts for travelers

The Schwab Bank High Yield Investor Checking Account hits all the marks when it comes to saving money on fees while traveling abroad. You avoid all ATM fees, get unlimited ATM fee rebates, and there's no foreign transaction fee. This is truly a one-of-a-kind banking product when it comes to minimizing foreign fees - including monthly and annual fees. You'll even earn a decent APY [0.40% as of February 14, 2019].

Ally is another online bank with popular low-fee accounts, and their Interest Checking Account is a solid option for frequent travelers. It's a free checking account that can be set up online, and although they don't offer free ATMs worldwide, they do offer free ATM transactions within network in the US. There is a relatively low foreign transaction fee of up to 1% of purchases and ATM withdrawals made outside the US.

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Another option is to get a travel rewards credit card that doesn't charge a foreign transaction fee. Then, you can use that for all of your purchases and avoid fees while racking up points and miles. Your debit card would only be reserved for ATM withdrawals.

Personally, I'm all about saving money wherever I can in order to travel more frequently. That $1,413 I saved last year? Instead of handing it over to my bank, I'll be spending it on a trip to Japan.

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