Opening bank account overseas to reduce fees?

jesho on 11/07/2014 - 18:36

Hey guys,

So I jetted off overseas a day after my final exam. Exam preparation meant I wasn't as prepared for my travels as I should have been.

I took a decent chunk of cash with me but that's running low now and I'd like to access some of my cash from my CBA savings account in the coming weeks.

Unfortunately, I only have my CBA debit card on me and i'm aware that the fees and currency rates are very unfavourable. About two weeks before my trip I opened a Citi bank plus account based on feedback here. Unfortunately, my card came in the mail a few hours I flew out..

I'll be here for a while so I'll be needing to withdraw a decent sum of cash. Initially I thought I could get someone to post over the debit card to me here so I could use that but postage times to this side of the world (middle east) are very slow and express postage is a bit steep.

A relative suggested that I could possibly open a local bank account here, transfer my AUD to local account, withdraw in AUD and exchange it to local currency for a competitive rate. I hadn't considered this before and he wasn't 100% but it seems plausible so I thought I'd ask the brains trust if anyone has any experience doing this or any other suggestions.

Any help would be greatly appreciated,

Jesho

Travel

Comments

  • missWilly on 11/07/2014 - 19:03

    "I could possibly open a local bank account here, transfer my AUD to local account, withdraw in AUD and exchange it to local currency for a competitive rate."

    How do you withdraw AUD from an ATM in the middle east?

    • jesho on 11/07/2014 - 23:07

      Hmm didn't question it but i assume it could be possible from a branch perhaps?

      • sirspiff on 12/07/2014 - 17:57

        Highly doubt you could do this. You'd incur an exchange fee from AUD to the foreign currency, then from the foreign currency to AUD if it were indeed possible, then after you withdraw and convert to the local currency, another fee. So 3 fees and 3 exchange rates. Doesn't make sense if it were possible.

  • toristo on 11/07/2014 - 19:14
    +3

    How much are you talking?
    For the pain of it all, it may not be worth the effort - accept the $2-5 ATM fee and losing a cents in the dollar on the exchange rate and enjoy your trip.

    I battled a similar "ozbargain" dilemma in Thailand a few years ago and then realised that I was on holiday and didn't want to run around sorting bank accounts etc to save what would have been maybe $30-40 all up. My time was far more valuable that day.

    • jesho on 11/07/2014 - 23:09

      Hey toristo,

      Over the next two and a half months might need approx $2000 for accommodation, flights, food etc. Not worth it..? Don't mind coping a small fee but more worried about bad exchange rates..

  • No on 11/07/2014 - 19:32

    Does citibank have a branch where ever you are? If its a major city it is very likely they do. They should be able to help you.

    • jesho on 11/07/2014 - 23:10

      Just checked, unfortunately not. Closest major city is Bethlehem.

  • braskic on 11/07/2014 - 21:17

    Get somebody back to wire you your money via Western Union?

    • jesho on 11/07/2014 - 23:11
      +1

      I thought Western Union was ridiculously overpriced, only ever used in extreme circumstances?

      • sparkles on 12/07/2014 - 08:29

        This. Do not use Western Union.

  • ariann on 11/07/2014 - 21:23

    Have you considered the cost of transferring money overseas through a bank ? I believe it is in the range of $30…..

    • jesho on 11/07/2014 - 23:11

      Hmm how would this work exactly? Would it offer any benefit over simply using my debit card at a local ATM?

  • slowcoach on 11/07/2014 - 23:24

    How about if you open an account then use something like ozforex. Transfer an amount in AUD to your local currency. I've transferred money from an Aus account to Polish account and the exchange rate and fees aren't too bad.

  • oztonyau on 12/07/2014 - 00:05
    +1

    Suggest check exchange rates at the Middle East banks in Australia, especially the one(s) originating in the country(ies) in or near to where you are now. The Arab Bank Australia is the only one I can find. They can do Telegraphic Transfer in Jordanian currency. I say this because for China, Bank of China (Australia) had better exchange rates for the Chinese currency than the other Australian banks when I researched this last year. You may find that a similar situation pertains to your temporary country also. It may save you 5 to 10 percent.

  • Sandys on 12/07/2014 - 09:01

    I've transferred funds to my friend's bank account overseas from my Citibank A/C in the local currency. Their exchange rates aren't too different from the MasterCard rate and the only fee was from the receiving bank.

  • Brainwhacker on 14/07/2014 - 11:56

    Open up a local bank account and do a telegraphic transfer, negotiate a good rate with the AUD conversion

  • ozeebee on 15/07/2014 - 11:12

    For $2000 all up, opening a bank account seems like a major headache to deal with overseas.

    Have you found out if you are eligible to open a bank account in that country? How much are the fees for opening a bank account?
    How much will the TT fee cost to send the funds from Australia to Middle East?
    How long will it take for the account to be opened? Will you receive debit cards etc before you move on?

    TBH, if I was in your position, I will just take it in the chin and try to withdraw as much cash as I can in one go. Most you will possibly lose is $100 on fees and exchange rates etc.

    Just use it as a learning tool for next trip to be better prepared before leaving.

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