Barb_in_Ga

We have booked a family group visit to London for 9 people, 8 days in June of 2016. The plane tickets are bought and we have reserved 2 adjacent apartments.

So I started wondering--should I buy GBP now while the exchange rate is good? I was thinking around 1000GBP which currently would cost around $1400USD from Chase..

While I recognize that no one can accurately predict what will happen over the next 11 months with
currency values, it just seems to make sense. I have visited London numerous time over the last 15 years or so. and I can't recall ever paying less than $1.60, and once as much as $1.95.

Any thoughts?

Barb

Barb_in_Ga

That should read June of 2017!

janisj

>> I can't recall ever paying less than $1.60, <<

Then your timing has been unfortunate. In the last 12 years I've had trips w/ the exchange rate between $140-ish and $2-ish. Granted, the rates are terrific right now, they could be better or worse when you travel.

>>should I buy GBP now <<

No -- first of all >>I was thinking around 1000GBP which currently would cost around $1400USD from Chase..<< Today £1000 would cost $1311 so Chase is charging you nearly 9¢ extra per £.

Plus - you lose the use of the $$ in the mean time, and it isn't safe/secure to carry a boat load of cash around w/ you.

Heimdall

How will you feel if you buy £ at $1.40 and then sterling goes down even further before your trip?

Even if the £ goes back up in relation to the $, it will have to move at least 9¢ to offset what you will save by waiting and using ATMs in the UK. Remember also, you will be speculating on two currencies—the $ could change in value between now and next June as well.

I'm with janisj on this—I avoid carrying large sums of money whenever possible. I did transfer a sum of money from my $ account in the US to my £ account in the UK right after the referendum, but that didn't involve carrying cash.

You will benefit most before your trip by looking for an ATM card that has the lowest transaction charges for foreign ATM withdrawals. I live in the UK, and dropped my US Chase account years ago because of their high foreign transaction fees. I've no idea what Chase charges now, but my current bank has no charges at all for up to 10 withdrawals/month.

bilboburgler

I speculate as a business.

I'd not bet on June 17 £$ right now.

I'd keep my money in the bank on that one.

Right now I'm a Brit betting on Hillary continuing to keep the USA great, if I'm wrong and the idiot gets in then "we're all dooomed" (slight scottish accent on that).

StCirq

No, if for no other reason than buying from Chase will probably cost you at least 3% of the cost of the GBPs. Someone correct me if I'm wrong, but you'd be smarter to move your traveling dollars into an account at a credit union that has no fees at all for foreign transactions.

And there's no way I would leave home with that kind of cash on me.

Macross

I did last year but only because a freind was buying for two others because both needed cash for an apartment first day they arrived.They got a great deal and euro was 1.09 after all was said and done. I think I got three hundred but was not a year out.
My husband is in UK right now and asked him to bring back a little extra to put in the safe. He didn't bother taking the Ulster bucks, left them for me for my next trip to NI. I think it has been steady for a couple of weeks at 1.31. I had heard at first it was going to really drop but haven't seen that since the first day after the Brexit vote.

Christina

You're wrong (about credit unions having no fees). First, credit unions don't all charge zero. One of the biggest ones near me charges for an ATM transaction that isn't their ATM after just two uses per month, for example, and they charge 1 pct on their credit cards. I think most credit unions charge 1 pct on their ATM card, also, it's the Visa "international service assessment fee" according to Navy Federal credit union. And they charge even if you do DCC and the charge comes through in USD (which would be a ripoff anyway, so even more). They also charge a flat fee for any foreign ATM withdrawal. It's not a lot but they do have fees.

I have two bank accounts that do charge me exactly zero, one at Capital One bank and one at Charles Schwab-- no transaction markup and no ATM fee. My Cap One is a legacy account, not sure they have it any more though (it's a money market acct). However, they don't charge even that 1 pct for their online Cap One 360 accounts, and I don't think they have an ATM fee, either.

So there are banks that don't charge anything, at least some if not most credit unions charge something, although it might be better than 3 pct.