EUROS- When to purchase for 2011 cruise?

[katmich12]

Any banking people or others out there with an opinion on purchasing Euros from my bank? I have noticed the rate is now about $1.37 to purchase 1 Euro after a low of about $1.22. I'm thinking of getting some Euros (as much as 700) as forecasts show a trend upward for this year and next. I'd rather wait until next year to purchase but don't want to pay another 30%.

[Hlitner]

Darn good question. If we have learned one thing in over forty years of international travel it is you can never accurately predict the future value of the dollar. We have also learned to never buy Euros in the USA and simply get all of our Euros in Europe by using ATM machines. This gets you the best rate of exchange. You also get a good rate by using some credit cards (CapitalOne and Schwab are the only ones we know that charge no exchange fees on their charges). If you do plan on using your ATM and charge cards make sure you notify the issuing banks (in advance) of your itinerary and have a 4 digit PIN that you know in numbers (no letters on most European ATMs).

 

Hank

[paul929207]

I always get mine at an ATM in Europe

[Keith1010]

I would just wait till you get over there and get them from an ATM.

 

No one knows for sure whether to purchase them sooner rather than later.

 

Keith

[April7901]

Personally, I have no interest in trying to track down an ATM once I'm in Europe. There's going to be enough to take in all at once, and having to dig out my ATM card in the airport with my luggage is rather unappealing. I don't want to waste a moment of my "in port" time fumbling with an unfamiliar ATM.

 

I kept an eye on exchange rates, and exchanged in batches when the exchange rate seemed appropriate. I exchanged at 1.32 and 1.35 - both acceptable rates in my book. Sure, I'd have been better off exchanging at 1.22 - but by the time I get to Europe, the exchange rate might be 1.50. Then it won't matter who I use to exchange - I'm still getting a crappy rate compared to what it could have been.

 

If you're not sure about exchanging ALL for euros, I would say at least do a small batch that will get you through the first day or so - or whatever you need to make it worthwhile. My bank charged a $7 flat fee to exchange - and that's probably about what I would pay in ATM / conversion fees.

 

Just my .02.

[katmich12]

Personally, I have no interest in trying to track down an ATM once I'm in Europe. There's going to be enough to take in all at once, and having to dig out my ATM card in the airport with my luggage is rather unappealing. I don't want to waste a moment of my "in port" time fumbling with an unfamiliar ATM.

 

I kept an eye on exchange rates, and exchanged in batches when the exchange rate seemed appropriate. I exchanged at 1.32 and 1.35 - both acceptable rates in my book. Sure, I'd have been better off exchanging at 1.22 - but by the time I get to Europe, the exchange rate might be 1.50. Then it won't matter who I use to exchange - I'm still getting a crappy rate compared to what it could have been.

 

If you're not sure about exchanging ALL for euros, I would say at least do a small batch that will get you through the first day or so - or whatever you need to make it worthwhile. My bank charged a $7 flat fee to exchange - and that's probably about what I would pay in ATM / conversion fees.

 

Just my .02.

I tend to think like you. I will get about 500 euros before leaving to get through the first 2 days in Barcelona and the first of 4 private tours that require cash in euros. After that I will check out ATMs. My dilemma is the timing. I have 13 months and my husband is rolling his eyes so I think this is my call.

[katmich12]

Thanks, Keith, Paul and Hank. I'm sure whenever I decide to purchase, it will be too high. Wish we had a crystal ball!

[lovemylab]

If I have a trip planned that involves me needing to buy foreign currency, I buy it in smaller amounts leading up to the trip.

 

I find it easier on the budget and it allows me to dollar cost average the exchange rate. If the rate drops than I may but a bit extra.

 

My bank always has a supply of british pounds and euros so it's very easy for me to do it this way.

 

Like others, I have no desire to spend my vacation time trying to find a bank machine. Plus there are higher fees for each transaction.

[katmich12]

Thanks for your good advice.

 

Lindy

[jotabecu]

Any banking people or others out there with an opinion on purchasing Euros from my bank? I have noticed the rate is now about $1.37 to purchase 1 Euro after a low of about $1.22. I'm thinking of getting some Euros (as much as 700) as forecasts show a trend upward for this year and next. I'd rather wait until next year to purchase but don't want to pay another 30%.[/quote

 

Just checked and it is US$1.329 to 1 euro.

I always have 500-600 euros with me.

Make it a practce to purchase euros (via ATM) every time I go to Europe, of course if I see it below US$1.30 I will buy as much as I can since I use it quite a bit throughout the year.

[Hlitner]

We smiled at the posts about fumbling and looking for ATMs. The reality is that European ATMs are just about everywhere and, in most cities, its hard to walk a block without seeing several ATMs. I can't recall every wasting even 5 min trying to find an ATM since we simply maintain our Euro supply when its convenient such as when we happen to be walking by ATMs. For those flying to Europe there are ATMs in every airport and usually there are a few in the near the exit (or in the luggage area). Our experience with banks in the USA is that their exchange rates plus fees (if any) give you money at far less favorible rates then we find in Europe. Since we spend a lot of time in Europe these rate differences amount to real money (not just a few dollars). Lastly, I should mention that credit cards can be a great way to handle purchases in most of Europe. The cards offered by CapitalOne and most of the cards offered by Charles Schwab do not charge any transaction fees on international transactions and the credit cards use the wholesale rate of exchange which is about the same as ATMs. Unfortunately, many other cards do now charge 2 - 3% on international transactions (still a better rate then you would get buying Euros at any US bank) which is why we no longer use our AMEX card in Europe (they charge about 2 1/2%). Once AMEX raised their percentage we quickly got a CapitalOne MasterCard which is what we generally use when out of the country.

 

Hank

[katmich12]

We smiled at the posts about fumbling and looking for ATMs. The reality is that European ATMs are just about everywhere and, in most cities, its hard to walk a block without seeing several ATMs. I can't recall every wasting even 5 min trying to find an ATM since we simply maintain our Euro supply when its convenient such as when we happen to be walking by ATMs. For those flying to Europe there are ATMs in every airport and usually there are a few in the near the exit (or in the luggage area). Our experience with banks in the USA is that their exchange rates plus fees (if any) give you money at far less favorible rates then we find in Europe. Since we spend a lot of time in Europe these rate differences amount to real money (not just a few dollars). Lastly, I should mention that credit cards can be a great way to handle purchases in most of Europe. The cards offered by CapitalOne and most of the cards offered by Charles Schwab do not charge any transaction fees on international transactions and the credit cards use the wholesale rate of exchange which is about the same as ATMs. Unfortunately, many other cards do now charge 2 - 3% on international transactions (still a better rate then you would get buying Euros at any US bank) which is why we no longer use our AMEX card in Europe (they charge about 2 1/2%). Once AMEX raised their percentage we quickly got a CapitalOne MasterCard which is what we generally use when out of the country.

 

Hank

 

Thanks, Hank, for sharing your experience. We were in Paris 5 years ago with lots of access so now know not to worry on the cruise.