Has it gotten harder? Used to was, I could walk into one of the big banks downtown, go to a special desk or counter, tell them I wanted $500 worth of X currency, and they would give it to me (as close as they could without coins) and I would get a decent rate of exchange. Now you have to be a customer of the bank, you have to order the currency in advance because they may not have enough in stock, and you get a lousy rate.
The rate is still better than any of the commercial money changers, like at the airport or the mall. But my bank took 6% off the top for a recent exchange, which seems like a lot of money for a no-risk interaction. The money changers wanted 7% or so.
I do understand that I don’t need to carry as much foreign cash with me when I travel, but you also have to be careful about using your credit card or debit card, and check for foreign exchange fees that can happen every time you use them.
I guess foreign currency exchange has become another profit center for banks.
Anyone have any new tricks for this? What’s the best way to change money for travel to 1st world countries?
I prefer to use a debit card at the ATMs of the country I am visiting. Recently they are providing the conversion rate and you can yes or no to the transaction.
Some banks have no international transaction fees on debit card withdrawals.
Use ATMs overseas, and/or get a CC designed for international use that doesn’t have additional fees.
As for banks in years past, how many different currencies did they have in stock at any one point in time? It can be expensive to keep lots of currency on hand when it doesn’t get used very much, and subject to market fluctuations.
My local bank branch (near my office) carries Canadian dollars, British pounds, Euros, and I think Mexican pesos. They can get most anything else on 48 hours notice, a service I’ve never needed. If I go to a main branch in downtown Boston and can get a lot more currencies on hand.
It depends on the country, but you may not get any better exchange rate than you would doing it in the US. And if you go to a bank you might need to fill out a bunch of forms.
These days, that’s really the best solution, especially for first world countries. You’ll normally get the best exchange rate, even considering fees for using the ATM. I’ve done this everywhere from Germany to Brazil to Indonesia.
Use your debit card in an ATM. Exchanging dollars for pounds/Euros/Swiss Francs/Canadian Dollars/Yen or wherever you’re going is a pain. Find out about any currency conversion or other fees the bank will charge you, but you’re almost assuredly going to end up better off just getting some currency upon arrival at your destination. Of course, avoid dynamic currency conversion at the ATM. That’s when they offer to tell you a dollar amount. Just withdraw your 100 Euros or whatever currency you need and don’t have them pre convert it into US dollars.
Even the biggest banks don’t keep a reserve of foreign currency in stock. I can speak particularly of the United Kingdom. In the past 2 years, they have changed their 5 pound and 10 pound notes from a paper version to a polymer version. So, the old notes can only be exchanged at the Bank of England.
I’ve learned a few things about changing money: never ever change money at a bank, an airport, or (the worst) in a hotel. These places will screw you over big time, especially the hotels.
I remember going to a black market place when I was living in Israel in 1990. There were many such places around at the time. This place was in a hareidi (ultra-orthodox) area of Jerusalem. I’d go up a flight of steps on the outside of the building, and there was a CCTV camera over the door. I’d know, go in, and hand my money to the guy behind the counter. He’d ask me a few questions in very broken English, then he’d open the money cabinet. Inside the cabinet were stacks and stacks of money - dollars, shekels, pounds, rubles . . . While he was counting out my money, he’d be answering questions in Yiddish on the phone.
So the same bank that charged us 6% to change the money here charges 3% for every debit card transaction, plus a $2.50 ATM fee if withdrawing from not their ATM (they do have a few of those in Europe, but it’s probably not worth it hunting them down). My Amex card charges 2.75% for purchases overseas. I have a debit card with a credit union, I haven’t heard back from them on how much they charge for overseas transactions.
By the way, I live in San Francisco, which is supposed to be a financial hub. This shouldn’t be that hard or that expensive.
Best: use a credit card with 0% foreign transaction fee. Capital One is the biggest US bank that regularly does this, but they aren’t the only one.
Depends on how first world your destination is (and Germany is cash-heavy, apparently). If you need cash, either use your debit card in the country’s ATMs, or else go to your bank’s website and order money. Even the biggest branches typically don’t have a big supply of foreign currency.
I agree on all. I keep my Capital One card because it doesn’t charge a foreign transaction fee (otherwise the 1.5% unlimited cashback isn’t good enough, Citi Double is 2% unlimited). I also use it to order stuff from foreign sellers on web when home.
In developed countries you can go to the ATM, or if you don’t feel like showing up with zero cash, do the online thing with your bank before you leave. I use BOA who are generally terrible on fees on but hasn’t been bad to use the ATM card overseas or order currency.
I can’t address the currency conversion fee, but your bank charging you a fee for using another bank’s ATM is crazy. It’s pretty common to be charged a fee by the bank who owns the ATM, but it sounds like you’re getting nailed by both banks in that case.
And a fee for using your debit card is totally acceptable.
I guarantee you the credit union will treat you better in all respects, though I don’t know if they would help you with the currency conversion. As everyone else has commented, that should really be a non-issue.
When my son went to Europe in 2016, I actually did go to a currency conversion service to get a few euros for him to carry around as emergency cash. All our bank accounts with credit unions, and any real banks that might have foreign currency are not easily accessible during the work week. It was more for my peace of mind than anything; several countries he was visiting don’t even use euros but I figured they could handle euros if he needed to use them. He brought them back untouched, so I’ve got them put aside for the next time anyone travels to Europe.
I travel a lot internationally for work and I just use my debit card to get local currency. I’ve done this in many countries over many years and never have a problem.
There are many credit cards nowadays that do not charge a foreign transaction fee. I have two in my wallet right now: One from Bank of America and one from Citibank. (The latter card just announced they were stopping foreign transaction fees a few months ago.). Just shop around. They are easy to find.
For decades I would use AAA. They used current exchange rate and free delivery via Fex Ex. You could also charge it if you wished and they would post it on your credit card as a purchase not a cash advance.
But it appears they’ve discontinued issuing paper currency. I’m going to Spain next month and just tried to buy some Euros and it’s not available on their website any more.
:mad:
I just bought currency from them in November so it’s a recent thing.
As a practical matter, it is virtually impossible to do this in Indonesia. For reasons unknown*, the banking system (and by necessary extension, the entire country) is unbelievably paranoid about bill quality. The only acceptable dollar bills are in mint, and I mean MINT, condition. The tiniest hint of a fold will result in your currency being rejected. Moreover, some places limit the series numbers they’ll accept.
There may be other countries that have this kind of system, but I have not encountered them.
*Related to counterfeiting, I believe, yet somehow the rest of the world manages without Indonesia’s crazy methods.
When I worked in a bank, we would occasionally get Filipino people who were going to visit family and requested $100 bills with specific features. I believe it was that they wanted the pre-1996 small head bills but that was more than a decade ago.
Not foolproof. In the Philippines, the maximum withdrawal is $200, and the ATM charges $5. Which is a pretty stiff 2.5% before my US banks even gets a shot at manipulating the exchange rate and charging me their international transaction fee. Adds up to about 5% when all said and done, and with cash, I can get better than that on the street.
If you plan to travel abroad, ask your bank for crisp, clean $100 bills of the current design, no bank markings on them. Many overseas changers refuse to accept soft or oldish or marked bills.