I posted this in the Study Abroad forum a week ago, but thought it may also be of interest for sending money to students in the US too. The guy that started ING Direct has a new financial company called Zenbanx. Best part is it’s free, so long as you opt in to their customer directory when you sign up and both the parent and student have accounts. It pays 1% interest on dollars and varying interest rates on other currencies and is FDIC insured. I remember when ING paid 6% on a savings account, but I guess those days are gone. I’ve been using this for a few months now and it has been working great.
Thanks for the tip. I downloaded the app and signed up.
I visited the website. I’m trying to figure out how this is better than just having a real or online demand deposit account with an ATM card. Some of these cards have no foreign transaction fee. Others charge a relatively modest three percent. But the money is available as soon as it is put into the account.
The difference is that the no transaction fee credit cards stick you with a high exchange rate, and you have no control over it as you don’t see it until after the purchase. This account allows you to exchange in advance of your trip, hold the money and earn interest, and then you can either get the foreign currency out at an ATM or for purchases. The brilliant thing is that it comes out of your Euros position of money you already converted. It’s like Western Union and the currency kiosk at the airport all in a mobile app and Visa debit card, only a lot cheaper. I like the fact that I can send her the money in minutes, to me that is piece of mind while she is away.
My kid and I have a credit union account. I deposit $ in it. She uses the card overseas. God only knows what kind of currency! Worked well in 20 or so countries. Soooo… How is it different? No transaction fees… but that does not mean the bank is a charity. They will get you on the exchange rate if not on the fees.
@Kaos2015, I’m interested in your experience. Many of the app reviews indicate long processing time. Also, always an ATM fee, we’ve avoided these in multiple countries with our bank ATM card by using the ATM asdociated woth our banks’ networks. I also can’t find which currencies are supported, not a concern with an ATM card from our bank.
One of my kids, resident in a foreign country, has a multiple currency account in the country of residence. Hasn’t found this advantageous for travel or daily living.
Guess I’m missimg something.
@BunsenBurner, I believe they make their money on people who send money to non-customers in other countries. I’ve checked their exchange rates compared against other sites, and they are pretty good so far.
And why does that matter to us? I understand if I had a relative in India and wanted to transfer money to her, I would avoid the $40 wire fee from Chase etc. but if the kid is a US citizen with a US bank account studying abroad… My fee is 0. So… No gain Just the hassle to open an account at your bank
@Momofadult, Not sure about the app reviews, but I was able to download the app pretty quickly and signup. Could be people have older phones I suppose. Go to their Exchange Rates page, and that will tell you the currencies they support. I called them about this when I first signed up, and they said that they were planning on adding more currencies as they grow. I think the big thing about this for international travel is that you buy your currencies in advance, hold them, earn interest, and then you know exactly how many Euros, Pounds, Yes, etc you have for your trip. Using a normal ATM or credit card puts you at some one elses mercy as you are accepting whatever exchange rate they give you. If the currency market is down on the currency I need for an upcoming trip, I simply wait a day or two and then buy when the rate is better.
Do you work for this company?
Yes, Inquiring minds would like to know. 
@thumper1, I just thought this was a cheaper and more convenient solution and thought I’d share. Which is what the purpose of a forum is, correct? To answer your question, no.
Zenbanx is not FDiC insured.
The account is actually issued by Wilmington Savings Funds, which is FDIC insured. You are going through an intermediary or a subsidiary. Should Wilmington fail, it may be complicated. Your funds are insured, but not directly.
People wonder why the Wall Street transactions are so complicated? This is why. Many layers.
My daughter is in Italy this semester and I am able to send her money for free. It’s a new company called Zenbanx and they offer a multi-currency bank account through banks in Canada and the US. They allow free money transfers between their customers so long as you opt in to their customer directory when you sign up. She can access the Euros with a debit card. They do charge an ATM fee of $1.75, but they also pay interest on the different currencies. They cover Euro, Rupee, Japanese Yen, Australian dollar, Canadian dollar, and a few more. Much better than sending wires like I did with my son a few years back.
Our kids have an acct at our credit union. If they need money, I just transfer money electronically from my acct to their’s. No transfer fees since it’s the same financial institution.
They can use their debit card worldwide as a credit card or to withdraw cash from an ATM. Easy peasy.
@Kaos2015, the reviews I read complained of lengthy transfer times. I’ve been doing the personal use foreign currency buy sell dance for many years. I have yet to be able to time the market on my exchanges.
I’m still missing the point on this company - unless perhaps an individual is transacting daily business in multiple currencies. As I said earler, the kid with with the multiple currency foreign bank account has yet to find it helpful.
Agree with others who have had no trouble immediately transferring funds and using an ATM.