judilie

I will be in Australia for 4 weeks and would like to get the best possible exchange rate on US$ for AUD. Which is best - exchanging money at a bank, getting AUD from an ATM, or paying with a credit card?

Is the answer the same for N.Z.?

Thanks.

ZfromWinnipeg

I have been to Australia and New Zealand 3 times in recent years and found the best exchange rate is for credit card charges and for cashing travelers cheques at a Bank. Cash will cost you an extra 1% to 1.5%. Using ATM will cost you exchange conversion plus two service charges, don't do it. Forget about currency exchange places they charge very high spreads.

Charge everything you can to a credit card and estimate your cash needs for the balance and take travelers cheques and cash them at a Bank (not at money exchange place or hotel etc.).

Z

ZfromWinnipeg

Forgot to mention, some Banks also have a fixed transaction charge for cashing travelers cheque ($10 to $15) so it's best to minimize multiple small value cheque cashing.

ZfromWinnipeg

One more minor detail, if you have to pay a 1% travelers cheque purchase commission, the cost for travelers cheques and cash in the end will be about the same. I get my travelers cheques for free.

ZfromWinnipeg

One more clarification, the Bank fixed charge of $10 to $15 for travelers cheques also applies to cash conversion. This is a fixed currency conversion fee not a cheque cashing fee.

mlgb

It pays to see if you can find a bank that does not have a service fee at all. I recall ASB? in New Zealand was not charging one last year.

Neil_Oz

Check with your bank - they may have a tie-up with a local bank. The "big four" in Australia are the Commonwealth, Westpac, NAB and ANZ. I think they all operate in NZ too. Even if you put most expenses on your credit card (Visa and Mastercard being by far the most widely accepted) you'll still need cash. Travellers cheques are inconvenient and not much used these days.

therenaissanceman

I'm surprised anyone recommends travelers checks these days, even if they get them for free. ATMs are far more convenient, and I have not found the fees involved any greater than the premium paid for cashing travelers checks. When we were in Australia and New Zealand, we used credit cards for large transactions and money received from ATMs for small transactions. ATMS are everywhere, while banks to cash travelers checks are only open during certain hours and days.

bechan

I went to Australia recently from Japan. For the first time I changed money (at the airport in Tokyo) and used my credit card on the same day. My rate at the airport was Y108=A$1 and the credit card rate was Y86=A$1. The Y108 rate was comparable to what I found in Australia, except in Cairns, which had better rates than anywhere else (Y100=A$1). I knew my credit card had better rates, but I didn't realize there was such a big difference!

Jayna

Getting the best exchange rate will really depend on your banks/cards (fees, of course, are another story).

When I came to Australia six years ago, my bank gave me the most favorable exchange rate that occurred anytime in the calendar month. When I moved (in the US) I changed banks, and I now get the exchange rate at the time the transaction is processed...

If at the time of your trip the exchange rate is fluctuating as much as it has been for my last 35 days here in Oz (The rate has changed by as much as nearly $.15 in just a month...), you'll probably get the best rate exchanging money at a bank because you know exactly what rate you're getting.

Jayna
travels at www.ususbaby.com

phishears

Don't forget to check with your credit card company to see what they charge for international transactions. My Aadvantage Master Card has a 3% international sur charge.

So we got a capital one card, no international surcharge (at the time april 2007) you might want to check them out.