currency exchange

[texas bound]

I have read many posts on exchanging currency into Euros. Some say the rate is better at an ATM. The ATM will charge a fee and my bank will charge a fee of i.e. 3% or $5 whichever is greater.

 

The exchange rate today is 1 EUR = 1.35874 USD or 1 USD = 0.735976 EUR.

 

So if I exchanged in the US before travel, for $500 I would get 368 Euros. If I used an ATM I would probably get the same amount of Euros but have to pay $15 plus whatever the ATM would charge.

 

Am I thinking it to death? How is that a better deal?[/size][/size][/size]

[Wine-O]

I have read many posts on exchanging currency into Euros. Some say the rate is better at an ATM. The ATM will charge a fee and my bank will charge a fee of i.e. 3% or $5 whichever is greater.

 

The exchange rate today is 1 EUR = 1.35874 USD or 1 USD = 0.735976 EUR.

 

So if I exchanged in the US before travel, for $500 I would get 368 Euros. If I used an ATM I would probably get the same amount of Euros but have to pay $15 plus whatever the ATM would charge.

 

Am I thinking it to death? How is that a better deal?[/size][/size][/size]

 

First off, European Bank ATM's do not charge any fee. Any fees for those transactions will be from your bank (ATM fees, conversion fees, transaction fees, etc.).

 

Banks are in the business to make money. If you exchanged in the States $500 and get 386 Euro, go for it, because your bank will be losing money giving you the Interbank rate.

 

Call your bank and do the Math. My guess is you will get a rate that is higher than the Interbank rate, plus your bank will most likely add on a service charge for the transaction.

 

My bank, TD Bank, charges nothing for ATM transactions or conversion fees, and gives me the Interbank rate for the day of transaction. I understand that Capitol One is pretty much the same.

 

You need to call your bank and find out what their fees are for ATM transactions (conversion/transaction/ATM) then do the Math.

[SadieN]

No matter how you do it there will always be fees (hidden or upfront) associated with currency exchange.

 

Some exchanges charge a fee + a high interest rate. Some only charge a different (higher) interest rate. An exchange in this case means any way to exchange money-bank, money exchange, ATM, etc. You will RARELY pay the official exchange rate. That's for the banks. DD lives in Rome and uses a noFee card. The rate varies minute-by-minute so you'll never know the exact rate.

 

Since the transaction fee is the same no matter what is pulled out it is best to get the maximum that you can at a time.

 

In Europe an ATM is usually called a Bancomat. Cash is usually referring to coin. Bring a coinpurse as the lowest Euro-bill is E5. Coins cannot be exchanged back.

 

We've been lucky with our Schwab no fee card. Others use a Capital One Card. We bring some Euros upfront then use the Bancomats.

Check the historic exchange rates. We are friends with some exPat Italians who exchanged alot when the Euro fell to the $1.20s.

Edited June 19, 2014 by SadieN

[navybankerteacher]

I have read many posts on exchanging currency into Euros. Some say the rate is better at an ATM. The ATM will charge a fee and my bank will charge a fee of i.e. 3% or $5 whichever is greater.

 

The exchange rate today is 1 EUR = 1.35874 USD or 1 USD = 0.735976 EUR.

 

So if I exchanged in the US before travel, for $500 I would get 368 Euros. If I used an ATM I would probably get the same amount of Euros but have to pay $15 plus whatever the ATM would charge.

 

Am I thinking it to death? How is that a better deal?[/size][/size][/size]

 

The exchange rate the bank quoted gives them a bit of an edge - then you have to add their 3% or $15. The interbank exchange rate at an ATM would be closer to the flat exchange rate - plus the local bank's ATM fee - probably 2 euro, and your bank's fee for using a "foreign" ATM. (If any) - perhaps up to $3.00; for a total transaction cost of about $6, vs the $15 your bank would charge. Getting your foreign currency via ATM is virtually always cheaper than doing an exchange. Some banks do not charge for using "foreign" ATM's - and will even refund to you any fess ( up to $3.00) for the charges tacked on by that other bank. That is the arrangement I have with UBS because my checking A/C is linked to my IRA investment A/C.

[CruiserBruce]

. The interbank exchange rate at an ATM would be closer to the flat exchange rate - plus the local bank's ATM fee - probably 2 euro, and your bank's fee for using a "foreign" ATM. (If any)

 

Huh? European ATMs have never charged a fee in my experience. Have used ATMs in probably 10 or 12 European countries, never having a fee charged from the European ATM.

 

OP, the best rate is at an ATM. Period.

[Keith1010]

If you go to your bank in the USA you won't use an ATM and they will charge you whatever rate they go with. You will do better if you use an ATM in Europe for the Euros.

 

With that said I have come to the conclusion that if you are not going to exchange a lot of money that for the convenience it can be easier and not a big hit just to convert money at home before your trip. We now use our local bank and have found the rates to be fine and while more than if we did it in Europe with an ATM it just doesn't amount to a big difference. Now, if we are talking about thousands of dollars that's a different situation.

 

Keith

[CPT Trips]

You'll be lucky to get 335 euros for $500 retail cash. Not the 368 you expect based on the interbank rate you will get on a Bancomat transaction. Even with the 3%, you'll net 357, way better than a retail cash exchange.

[Lutèce]

This link may help - it's aimed at American visitors to Europe.

 

 

https://www.ricksteves.com/travel-tips/money/cash-machine-atm-tips

[ednotmilkman]

for my trip to england last month (non cruise), I was advised to make conservative estimate what I'd need, go ahead and get it ahead of time from my local US bank. They charged $1.80 per Brit lb. plus $5, which was only about 5-6 cents above the "flat" exchange rate. So that cost me about $40 above the flat rate for 600 pounds? Was well worth it to know I had it on me at the beginning.

 

Another lucky trick that worked for me was that on my return to US airport, after passing through customs, I went back to the international gates and found a US family waiting to fly to UK for vacation and I sold them my remaining 90 pounds for $150 which was at the "flat" rate for us both. Main reason I had so much left was that I discovered a cross country bus ticket purchased via internet and credit card was MUCH cheaper than train ticket bought at the stations. And only took maybe 30% more time.

[Emmasoma]

Honestly, for that amount of money it isn't worth stressing over. You could change at your bank and get a better rate than in Europe if the over all rate changes by the time you go or the opposite could happen. We fly to Europe at least once a year and ALWAYS land with some Euro in our pockets, enough to last a couple of days. Not worth the hassle of landing with jet lag and worring about some money to get a cab, bus or cup of coffee and having to locate an ATM first in a crowded airport. After your first trip just save some Euro for the next time. After you get there, go to ATMS as needed. We use Capital One as they have no change fee. As you get to the end of the trip, use up all the change and NEVER change your Euro back to $ as the rate for that is terrible. Just save it or sell it to someone at home.

[whogo]

for my trip to england last month (non cruise), I was advised to make conservative estimate what I'd need, go ahead and get it ahead of time from my local US bank. They charged $1.80 per Brit lb. plus $5, which was only about 5-6 cents above the "flat" exchange rate. So that cost me about $40 above the flat rate for 600 pounds? Was well worth it to know I had it on me at the beginning.

The math works out differently for me. The worst interbank rate in May as shown at oanda.com was $1.6969/£. You paid at least $66 over the interbank rate or about 6.5%.

[Gail & Marty sailing away]

We use ATM when needed ..

[realjd]

Put me in the ATM and credit card camp. It's so much more convenient than dealing with having to exchange currency before we leave, and the rates are usually better.

 

It's not hard to find credit cards with no foreign transaction fees.

[PaulMCO]

The math works out differently for me. The worst interbank rate in May as shown at oanda.com was $1.6969/£. You paid at least $66 over the interbank rate or about 6.5%.

 

 

It is certainly better than the crooks at LHR which charge upwards of 10% commission. ATM is always the best way to go.

 

The worst way is using Travelex seems like their charter is to rip off fliers.

[navybankerteacher]

for my trip to england last month (non cruise), I was advised to make conservative estimate what I'd need, go ahead and get it ahead of time from my local US bank. They charged $1.80 per Brit lb. plus $5, which was only about 5-6 cents above the "flat" exchange rate. So that cost me about $40 above the flat rate for 600 pounds?

 

 

That $1.80 per UK L. plus $5 was a lot more costly than ATM's would have been: probably much closer to the actual $1.70 rate - and just $3.00 fee. ATM withdrawals are reliably cheaper than bank exchanges.

[NMLady]

I have read many posts on exchanging currency into Euros. Some say the rate is better at an ATM. The ATM will charge a fee and my bank will charge a fee of i.e. 3% or $5 whichever is greater.

 

The exchange rate today is 1 EUR = 1.35874 USD or 1 USD = 0.735976 EUR.

 

So if I exchanged in the US before travel, for $500 I would get 368 Euros. If I used an ATM I would probably get the same amount of Euros but have to pay $15 plus whatever the ATM would charge.

 

Am I thinking it to death? How is that a better deal?[/size][/size][/size]

 

What you are leaving out is the commission/ fee that a bank or currency exchange will charge for exchanging the money. Find out what that would be and then make your comparison.

[paul929207]

My bank charges $5 for a foreign ATM withdrawal. I just get 500 Euros at a time. I find the rate is about 1/2 cent per Euro worse than the "official" rate that day. For two or three times a year, it is not worth the hassle to get a credit card without the fee.

 

BTW, I save the left over Euros for my next trip. I have some left from two years ago that I paid about $1.21 per Euro

[navybankerteacher]

My bank charges $5 for a foreign ATM withdrawal. I just get 500 Euros at a time. I find the rate is about 1/2 cent per Euro worse than the "official" rate that day. For two or three times a year, it is not worth the hassle to get a credit card without the fee.

 

BTW, I save the left over Euros for my next trip. I have some left from two years ago that I paid about $1.21 per Euro

 

We do the same - always seem to have about 100 or so each of GBP and euro left over. Saves rushing to ATM first thing, and, depending on rate fluctuations could represent a profitable hedge (or loss!).