I've lived semi-permanently outside my home country off and on for twelve years. In this time, I've never opened a bank account outside the US.
I did try one time during a long stretch of living in Mexico. I forget the reason why, but it seemed important at the time. It took hours of paperwork. You'd think I was applying for a mortgage or car loan, which in the States is way less hassle than opening this deposit account with a few hundred dollars in it. Finally, the ordeal completed, the banker walked me to the front ATM machines to try out my new debit card. It worked, concluding our business.
A few weeks later, I tried withdrawing pesos from an ATM just to make sure the card still worked. It did not. Back to the bank I went, wasting another afternoon for them to finally inform me they had closed the account on a technicality. Nobody was sure what the technicality was. I had a feeling it was because the address listed with Immigration on my temporary residency card did not match the address I used to open the account. That's my best guess. Fair enough, can't blame them, but then why approve me in the first place?
It took another trip back to the bank to get the cash I had deposited. Never again. I do just fine with the system I've used for many years in several different countries. There's money in my bank at home. In three banks, actually, just in case there's a problem with one, I have options.
I do not want to ever be left without options to get cash in the local currency when I'm in a foreign country. Larger businesses will take a credit card, but in LATAM cash is king. You can bargain with cash. Conclude your transaction smoothly and quickly with cash. And if you count your change, nobody can cheat you by stealing your information.
All this may sound troublesome and nerve-wracking but to me it is fun. It's like playing Monopoly with Mexican pesos or Chilean pesos or Peruvian soles or Guatemalan quetzales.
And in general, the exchange rate is favorable to the dollar, giving me more for less. One of the positives about expat life. That, and the weather.
I had read, and maybe it's not true for Latin America, that in a lot of Europe they use a lot of tap and pay (like Apple Pay). or credit cards I don't like cash apps, though, and don't use them. I'm old school and prefer currency. I think I would enjoy encountering the various types and colors of different countries and their money.
ReplyDeleteI absolutely love being on a cash basis when out of the country. It helps keep me on budget plus learn how to use the different money.
DeleteFrom what I remember, I was able to draw cash from certain ATMs. They dispensed it in the local currency (or course), but I don't recall any problems. Obviously, if I LIVED there, things would be a little different.
ReplyDeleteAl, that's how it works! It's so fun to get all that cash. You don't need an account at the local bank to use their ATMs.
DeleteI can't remember exactly, but the ATM needed to be labeled "Star" (or something similar) before I could use my card.
DeleteWell, as long as you're able to get your money, not having a local bank is fine. This is something I never considered.
ReplyDeleteFor brief time living in England, it was easy to go to the machine and get the cash needed. At the time, it couldn't be over $300, but I think that was more my bank's ruling.
ReplyDeleteIt's been $500 for my bank for awhile, although I think it went up this year to allow more.
DeleteWhy bother if it's easy to get cash. I love places that take cash. (At comic cons I really love people who spend cash! Then I don't have a Square fee taken out of my profit.)
ReplyDeleteMany local vendors in LATAM don't take cards at all. It's cash or nothing. They also don't want dollars!
DeleteI don't think I could ever find it fun! I'd worry too much that my money would be stuck somewhere unattainable.
ReplyDeleteDidn't realize that was a problem living in a country where you not citizen. I've lived in the USA my entire life and hate the fact that there are more and more places here that won't take cash. I've spent my entire life using cash where ever possible. Now I need a credit card.
ReplyDeleteI'm the anonymous comment up above. Sorry about that.
ReplyDeleteOnce I arrived in one country and my card was taken in by the ATM! Luckily I had some USD cash with me.
ReplyDeleteI've never been out of the country. Interesting what happened at the bank.
ReplyDeleteManaging money oversees can be a challenge. Usually, I carry a travel card, and use it whereever I can. And I use cash in the local currency only at places where the card is not accepted. I get the local currency in India itself before departure.
ReplyDeleteOnly twice I have used a cash machine abroad, Once in San Francisco and the other in Melbourne.
Good info to know. I remember going to a couple of places and taking travelers checks, but those were short vacations.
ReplyDelete