Steves' Advice for Frequent European Travelers: Multicurrency Accounts

Rick Steves, a travel expert, shares his practical money advice for frequent travelers to Europe. He recommends using multicurrency accounts, which allow users to hold multiple currencies in one bank account, making it easier to avoid exchange rate fees when switching between currencies.

According to Steves, this type of account is particularly useful for those who travel frequently or stay overseas for extended periods. For example, if you visit family in Europe a few times a year, the exchange rate fees can add up quickly.

Steves suggests that multicurrency accounts work like international checking accounts with multiple subaccounts, each holding a different currency. This allows users to hold funds in euros or other foreign currencies, avoiding bad exchange rates when on vacation.

However, Steves also notes that for casual travelers, it's often easier to stick with a fee-free credit card and use local currency for everyday purchases. He advises against exchanging dollars for another currency in the home country, as you'll likely get a worse rate than using an ATM.