Bank card question

Posted by Clarita8@reddit | expats | View on Reddit | 9 comments

Hi! I'm moving from the us to a latin american country. I've read everything about how to handle finances to save money and not lose access to it. I'm debating whether or not to open a Charles Schwab checking account, as I don't want to have more accounts than necessary. Here's what I'm doing:

* keeping local us credit union for high liquid savings rate and us expenses

* switching to a travel credit card with no foreign transaction fee

* opening a relationship with a bank in the estination country with two accounts - one in USD and the other in the local currency.

Here's the question. Typically it's recommended to have an international-friendly checking account such as charles schwab. However, will my travel credit card and local usd account cover that same need? Do I need to open all of these accounts, or is it too many? (I also have retirement accounts).

Thanks for your input.

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Effective_Ask_8852@reddit

Your setup is solid. I’d add a small “ops checklist” before you decide on Schwab:

Set up 2FA on everything and make sure you can receive codes abroad (or switch to app-based 2FA).
Confirm your travel credit card’s cash advance rules (avoid accidental cash-advance fees).
Make sure you can produce clean statements (proof of funds is a real thing for rentals/immigration).
Test a small end-to-end transfer: US → destination bank, and measure time + total cost.

If that test feels clunky or expensive, that’s when a “bridge” product helps. I know people who use ARQ for the USD management/conversion layer (especially when moving between LATAM countries) so their local bank is mainly for local bills, while ARQ handles the USD side more cleanly.

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Constant-Block-6666@reddit

I’d decide based on what problem Schwab is solving for you:

Will you withdraw cash often? If yes, Schwab (or something similar) is worth it purely for friction reduction. If no, your travel card + local bank can be enough.
How good is your destination bank’s USD account, really? Some “USD accounts” abroad are great; some are expensive, limited, or awkward to fund.
Do you need redundancy? When you’re new, having one backup path is smart (card gets flagged, local bank app breaks, etc.).

If you keep it minimal: US credit union + no-FTF card + local bank is fine. Then add one “bridge” option only if transfers/FX become annoying. In my case I’ve used ARQ (ex DolarApp) as that bridge (hold USD, convert when needed, spend locally), which let me avoid opening multiple extra US checking accounts.

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ppachi@reddit

You’re already doing most of the “big rocks” right: keep a US base account, use a no-FTF card, and have local banking for bills/rent.

Two things people underestimate when they move:

ATM strategy: even with a great card, you’ll need cash sometimes. What matters is ATM fee reimbursements + FX rate + daily limits. Schwab is popular because it simplifies this (rebates + decent FX), but if your destination bank gives you cheap local withdrawals and your card covers card spend, Schwab can be optional.
“Money pipeline” simplicity: pick one primary route for moving money: US → (your FX/conversion tool) → local currency, so you’re not juggling 5 places when taxes or proof-of-funds questions come up.

If you want to avoid extra accounts, one middle-ground I’ve seen is using a USD-focused app like ARQ as the “bridge” for holding USD and converting/spending locally when needed, rather than adding yet another checking account, especially if you’re moving within LATAM.

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8458001910@reddit

schwab offers atm fee refunds worldwide of the basic atm fee ( always select " no conversion, that fee is not refundable) and you get 3 free wire transfers per quarter to the foreign bank. after you have lived 6 months abroad, contact schwab international and give them your address to avoid closure of the account. you need a referral link https://www.schwab.com/client-referral?refrid=REFERMPX83D2Q

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Clarita8@reddit (OP)

Thank you! I would do the exact same if I didn't have a local bnk account. However since I will have local accounts in the country currency and in USD, and I can use that card for the atm, plus I'll have a good travel credit card for purchases, I wonder if charles schwab is not needed?

I'll have income from both the local country and from the US, if that helps at all.

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8458001910@reddit

having multiple banks is helpful as you can have an atm card expire or be lost or stolen. then you have other sources to get cash from. Schwab and fidelity are best for travel as the atm fees add up and they reimburse. right now I pay about $7.81 per withdrawal.

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Technical-Neck7407@reddit

I live abroad and only have my credit union in the US, an international CC and a local bank account in both Euro and dollar. Not sure what the benefits of a Schwab account are. Is it easier to transfer US funds to LatAm accounts via Schwab?

I’m not sure how it works for Latin America, but for Europe you can transfer funds from your EU bank to other EU accounts easily online without fees simply using the international bank account number assigned to the target account. The transfer fee between US/EU and vice versa when moving money between accounts is always my concern and I have used services like Wise.

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Clarita8@reddit (OP)

Thanks! My credit union is not international friendly. So the idea of charles schwab would be to have an international-friendly bank with no foreign transaction fees. But perhaps it's not needed since I'll alo have a local USD account?

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Technical-Neck7407@reddit

My credit union is not international friendly either. A Schwab account might be sensible if you are transferring funds internationally and paying bills back in the US. I’m not sure how LatAm banks work because I am in the EU and I primarily use my local account to transfer Euros to other EU countries and I can do that without fees because they simply need the IBAN (international bank account number) to initiate transfer. You need to ask the bank where you have a dollar account about international payments and any associated fees. Having dollars just means you won’t be on the hook for the exchange rate. It’s the transfer fees that are the problem. Having a Schwab account sounds like it might be the way to go.