ATM / Bank Fees

Excellent question. We are uploading a new youtube video on this subject, so please hit the link below to get a few more tricks. The banking fees are from 400-500 Nrs per transaction and you can take out around $100 in some and up to $350 at Standard Chartered Bank and a couple other ones. Here's our Youtube link about ATMs.
Also, check out my blog (listed on this site) for more tips about Nepal. Here's one on ATM safety in Nepal

Thank you very much for your response!

So you would recommend transferring my paycheck in euros monthly to a Nepali Bank and then using ATM's (I saw your video) to withdraw the money?

Or should I keep my euros in my Spanish bank? I just signed up to Transferwise because they allow you to exchange €/$/£ to NPR pretty much for free. Do you have any experience with this?

Again, thank you very much!!

1. You will never go wrong to have the proceeds of your monthly paycheck transferred directly from your spanish bank to a nepali bank, where you will have to arrange to open either a dollar or a euro account.  You can only do this after your arrival in Kathmandu. You cannot do it ahead of time, because to set it up, you have to be here in person - physically - fill out all the formalities, give specimen of your signature etc.  I used my bank in Spain to make bank to bank euro transfers for years on end and never had a single problem. To implement that, all you need to do is give written "standing instructions" to your bank in Spain to make the transfers. I always found that spanish transfer charges were very reasonable (none by nepali bank on receipt at this end). Just make sure that you pick a good and reputable bank like Nepal Investment Bank or Chartered Bank at this end.
2. Use the ATM's to  draw any extra cash you might require.
3. I would advise to keep the bulk of your euros in Spain rather than in Nepal. Safer and better.  Draw on Spain as and when needed.
4. I am not that familiar with TransferWise. All I know is that this service, founded by an Estonian, is a relatively new company, founded 7 years ago. On the other hand, Western Union and Moneygram are everywhere in Nepal and have been around for goons years!

Note: Check with your spanish bank before you leave and ask them what form your instructions will have to take to enable them to make additional money transfers, as and when required? My spanish bank did not accept emails, or phone instructions, but rather (signed) FAX instructions exclusively. If your bank requires same, you'll have to find a cyber cafe which still offers fax facilities. Not so easy to find nowadays, I can tell you. I don't know now, but not so  long ago, the totality of the fax cables in Thamel were out of order. Hopefully, they've repaired them by now.

For me, the less transferring, the better. I leave my money in the US bank and take it from the ATM. I can get up to $1,000 a day and it comes out in rupees. But if you have money in the Nepal bank it's also good. You can get a much better interest rate here, 9% for a time deposit, I think.

I asked about transferring money to a Nepal bank several years ago and I was told then it would take up to 30 days to transfer the money to Nepal. Then, because I'm from the US, I thought there would be more of a fee to transfer to a foreign bank. But that was in 2011 or so. I think it's almost the 21st century in Nepal, so things might have changed.

I had an idea to help tourists to set up an account here so they can get a better return and be able to come back. If they saved $100 a month they could come in less than 2 years. Unfortunately, I have no knowledge of financial stuff like this and what it would take, but I think a bank could have auto payments taken and then in a couple years the person in charge of the money could pay for the airfare from here for them and the balance could be for enjoying. I think it's way beyond me, but it could be done.

Yes, like you say, an american is probably well advised to park his money in an american bank.
And similarly as the inquirer is from Spain - nothing to do with the States in this case- in exactly the same way he is probably well advised therefore to leave the bulk of his money in Spain, which is what I recommended. So much for what bankers call "money on call" - That means liquid funds one can withdraw at any time, at will. 
I don't know what US bank you used to make transfers, but for more than a decade, the experience I had with my spanish bank (which is No. 2 in Spain) is that it never took more than 6 days to make a wire transfer from Bilbao to Kathmandu. If my bank took 30 days, I would close my account with them as this is to me outlandish.
Where there is a difference of opinion is when you cease to refer to money left on call, and refer to "time deposits".  As anybody knows, time deposits are funds which are blocked for the duration of the T/D - say 1-2 years. To get those attractive rates you are referring to:
1. one has to convert freely convertible euros in this case to a non convertible currency called nepali rupees - with all the serious drawbacks everyone knows about, if one subsequently wants to repatriate the money.
2. get the ok, as a foreigner, to have that kind of interest bearing account
3. and assuming one gets that ok, achieve exactly the opposite of what you first suggested above (in first para.) because in that event one would have to leave the money blocked for that long duration in a nepali bank - no longer in home bank.
If the nepali banks are now offering, it is true, those attractive rates on T/Ds, there is a reason.  It's widely known that this is due in large part to a well known "credit crunch" in the nepali banking system at the moment, reflecting problems of imbalance of trade and etc. in the economy. For those reasons, and talking as an ex-banker, I cannot possibly recommend that no matter how attractive rates on offer may rise to, one should leave excessive moneys with nepali banks in the current economic context. Can anyone predict where the nepali economy will be, say, at the end of two years, in 2020 when one's 2 yr TD expires?
Each person is entitled to his own opinion, but I am no risk taker myself.

The reality is that when the nepalese rupee manages to lose 10% of its value in exchange rate against both dollar and euro as has happened in the last 12 months, the 9% interest rate the nepali banks offer is no consolation for out of pocket losses. In this case scenario, the amount of interest nepali banks offer depositors is literally wiped out by the loss on the currency. They have similar situations in Venezuela, Turkey, Iran and other countries where economic woes are so prevalent.
When interest rates rise, wherever it occurs, it's a good indication inflation is also on the rise, which is what's happening here. It's anyone's guess as to where the nepalese rupee will be in 1-2 years down the line, but it's conceivable it could continue its downward trend.
Keeping bulk of one's hard currency money in home country bank is safest course in current context, I agree.

Thank you all so much, I truly appreciate all the input and time you have put into answering my questions. So far It has been very helpful.

I have a question for MadagascarNow because my contact in Nepal also suggested that I do what you said (keep my money on my home country and withdraw from ATMs with visa/mastercard). When you withdraw money using a card that holds $/€ don't you lose a lot of money on the way? Not only because you get charged a fee from the ATM but also because you have to use the exchange rate of the ATM which is usually very very bad.

So far I am thinking of keeping my funds in my Spanish bank and transfering my average monthly expenses to TransferWise or a Nepali Bank. But as dupuis2017 was saying, I am weary of leaving more money than absolutely necessary in a Nepali Bank not only because it doesn't feel as secure but also because of inflation.

Again, thank you all very much!

Glad to know information from all of us was helpful to you. A few more tips which hopefully will also be useful. I think you will find that in making transfers to Nepal, spanish bank(s) in this case will take a very reasonable % fee based on the total amount of Euros, in this case, that you transfer to Nepal.
On the other hand, if you use money transfer companies like Western Union and others to send your Euros to Nepal, be on the lookout - NOT for the fees (or "rate") they tell you about - but judge by the actual number of NRS they actually give you on receipt at the desk here. That's more insiduous and telling.
Let me explain. The official rate for conversion of Euros into NRS is set each day, varies twice daily, and is published on both morning and afternoon. For convenience sake, you can check out today's rate by surfing in Google for "Nepal Investment Bank Exchange rate" and - today, for example - you will see that the latest posted Buying Rate for the Euro is 135.79 Nrs.
That's pretty much what the nepali bank is likely to give you for your Euros.
But will the Western Unions, Moneygrams, and TransferWises of this world give you that same good and favorable rate today in Kathmandu, at the desk on reception here?  I seriously doubt it....in fact I would say no!
Best way to know if for you to TEST the service these transfer companies offer and decide for yourself. I am willing to bet that they may give you a conversion rate of maybe 129 to 130 Nrs. but not 135.79 Nrs. this date!!
If you are in any doubt, test the system on your own. Only one way to know for sure. Try sending a small amount like 50 Euros to Ktm, and see how many rupees they actually give the receiver at the desk on reception at this end? I have known Western Union, not to name them, to take a chunk of up to 6-8 rupees on every Euro, and that's based on actual experience.
Let me know if you do the test. Be interesting to know how much what you got...through TransferWise or other, on receipt of funds here? You can then be guided accordingly based on facts. Like they say, money talks!! Besides TransferWise may be more generous with you than WU with me!

Money transfer companies tell customers about "fees" but less is said about their margins until later. They can say what they will - beforehand - in the sending country, but it's only 24-48hrs later, that the same company will then set the exchange rate in the receiving country - and take a very comfortable margin in the process. (By then, it's a done deal, like it or not, for whoever is on the receiving end)  That said, some transfer companies are hungrier than others.

From my experience, here is very broadly stated - I must underline - how I generally see margins on foreign exchange taken at this end, in Nepal, by the  different actors with a rate like today of, say, 134.34 nrs for the Euro and 115.85 nrs for the USD.

Banks:                     
You can pretty much expect that the Nepali bank here will convert your Euros or USD they will have received from abroad for your account at the buying rate which that bank will have posted that day for the currency. If, today, for example, they have posted a buying rate 134.35 nrs for the euros and a buying rate of 115.85 for the USD, that's what the bank here will give you. No other fees on this side.

Money Transfer companies:
Depending on which one you use (and this will very much vary), you can expect them to take a hefty margin of several rupees off those two rates. Up to 6-8 nrs margin on exchange rate would not be surprising. That's how they make their money at this end.

I am sure that ATMs don't work for nothing either. It will therefore be interesting for Oscar and the rest of us to hear from MadagascarNow with all her experience on how much ATMs take as margin on a sum of $1000 - like she said. We know a nepali bank would pay their client 115.85nrs X 1000  = 115.850 nepali rupees, but how much NET would the ATM give for the equivalent $1000 amount??? (fee?? and margin on exchange??)
I must admit, I don't know.