I have a free BofA checking account with ATM/debit card. I used it at a Deutche Bank ATM (one of BofA's partner banks) in Munich earlier this year. No service charge by either bank. I don't remember the exchange rate but I think it was close to the interbank rate. With one exception (*see below) I never use my ATM card as a debit card (PIN or sign).

BofA runs frequent promotions where you can get $100 for opening a free checking account with direct deposit (similar to the Citi EZ checking account, see related thread in this forum "10,000 AA miles"). I don't have the link but you can usually find it at PGary's great website - just opened one for my new child. ^

* BofA has a debit card promotion where they will match the change from your debit card purchases for 3 months and add it to a savings account, up to a total match of $300. Don't ask me to explain, you can find details at BofA's website. Too good to pass up a free $300, so I reluctantly used my BofA debit card at Starbucks for 3 months.