harrowgirl

Husband thinks that we should just take cash with us (not enough for the whole trip, but like 1000 Euro and 300 pounds) - I figure maybe 200 Euro and 200 pounds - and use ATMS while there.

He says he was told he'd get a much better rate if he bought the money here - rather than service charges overseas.

Is it cheaper to use an ATM, or to bring cash from home? It seems that on here, everyone says use the ATM - but I wanted to confirm.

We are in Canada if it matters.

elaine

Some of us like to have foreign currency in our pockets when we leave on our trips, but in the USA banks do not offer anything close to a favorable rate for purchasing foreign currency, so those of us who do it, do it because we prefer to, not because we think we're getting a good rate. At 1000 euro, the disadvantage will be significant.

From the USA, I'd go over with no more than 200 euro, and 100 pounds, enough cash for a day or two, assuming I may be taking taxis from airports, or that I'm not using my credit cards for some reason.

Check with your bank about what rate they will give you. Also find out what ATM fees there will be for foreign transactions. For most of us, a few withdrawals of cash, even with transaction fees, won't add up to more than $10-20 at most over the course of a longish trip. The trick is to use cash as little as possible, minimize the number of individual atm withdrawals, and try not to let the locals charge you in anything but euro--some European merchants are calculating their charges in US dollars, or Canadian dollars, rather than in euro, and their idea of currency exchange isn't favorable to us either.

Christina

It doesn't make sense to say you'll get a better rate to buy euro in Canada than in Europe where it is the currency. Why would he think there is no service charge to do that in Canada?

You may find some exceptions, but it is probably cheaper to use an ATM in Europe than to exchange CAD for euro at some exchange bureau in Europe, if you are thinking of just taking cash to Europe and exchanging there. Of course, it may not be if your personal bank has some unusual ATM charges abroad or even adds a percentage to the bill, but you'll have to know that. I think many Canadians seem to have ATM transaction fees on here, so I wouldn't be using it to withdraw small sums of money a lot.

ira

Good advice from elaine,

Charge what you can, use ATMs for cash as needed.

Exchange rates in the US are much worse than an ATM in Europe, even with a fee from your home bank.

ron

Harrowgirl, it depends where you are in Canada. I use a currency exchange here in Ottawa that charges slightly over 1% to convert C$ to €. I know there is a company in Toronto that offers similar rates. I don't know about the rest of the country. The banks certainly do not offer rates better than through ATMs.

ucsun

all airports have ATMs ready to go...just stop off before you leave and you're good to go.

AnselmAdorne

harrowgirl, we take a few Euros to use on arrival and then withdraw Euros while we're there. We use a Canadian credit card for big purchases, such as hotel bills.

However, almost all Canadian banks and credit unions charge a fee of $4 or $5 Cdn for every ATM withdrawal outside Canada. This is a steep fee, and it adds up quickly if you withraw small amounts at a time or stay for a few weeks.

There is an exception: Scotiabank has a reciprocal agreement with certain banks in England, Germany, and France (the US and Australia, too) in which the fee is waived. I can never remember the names of the various European banks other than the one in France: it's BNP Paribas. They have ATMs all over France. If you'd like to know the names of the partner banks in England and Germany, drop by a Scotiabank branch and they'll tell you.

I hope you have a great trip.

Anselm

Michael

In the old days, we kept dollars in our pockets (either cash or TCs) because that was a stable currency. Nowadays, there is little reason to keep them if you are going to be in England or the euro zone. Those currencies are as stable as the dollar. Besides, it is getting more an more difficult to find a exchange bureau or bank willing to deal with such transactions.

nytraveler

Ron -

Is that a 1% fee on the amount of money you are changing - ie $10 to change $1000.

Or is that a 1% increase over the interbank rate of exchange - which is what 'ATM rates are based on.

(Often places change a fee of 1% - but then you find their rate of exchange may be 5% or 10% higher than the interbank rate.)

ron

nytraveler, today, the difference between their buy and sell rate for euros was 2.32%. I take that to mean that their sell rate is 1.16% above the interbank rate and their buy rate is 1.16% below. There are no fees or charges.

I buy cash from this company whenever I go to Europe. I also buy euro and sterling cheques from them to pay deposits and some membership fees and subscriptions. The exchange rate is slightly better for cheques, but there is a fee of C$1 for smaller denomination cheques.

RufusTFirefly

ron, you might want to check on what base rate that company is using. Any exchange bureau has a difference between their buy and sell rate, but that base rate they use might not be the interbank rate.

jody

Scotiabank's partners...


Bank of America - more than 12,000 ATMs throughout the United States
Barclays - more than 3,000 ATMs throughout the United Kingdom
BNP Paribas - 2,700 ATMs throughout France
Deutsche Bank 24 - 1,800 ATMs throughout Germany
Scotiabank - more than 2,100 ATMs throughout Canada
Westpac - 1,500 ATMs throughout Australia

AnselmAdorne

jody, thanks for that. I must write those down.

Anselm, a happy Scotiabank customer

ron

But Rufus, if they set the base rate too high, that means their buy rate will be above the interbank rate. Smart currency traders would kill them.

In any event, on my way to their store front, I pass a branch of Banque Nationale, which has a large currency exchange display board, which shows a buy sell spread of 8% to 10%. I know I save 3 or 4%.

AnselmAdorne

ron, the currency exchange in Ottawa ... Accu-Rate, by any chance? I've bought Euros and HK dollars there, and their rates certainly beat what I found found in Halifax.

Anselm

ron

Yes, Anselm, you're right. I've mentioned them here in the past, on the naive belief that, if Accu-Rate can succeed in Ottawa with this business model, companies like it must exist in all large cities in North American.

Any responses I got here exhibited the same scepticism that we see above.

AnselmAdorne

Here's their website for anyone in Ottawa. They have branches at the World Exchange Plaza on Albert and at 2573 Carling:

http://www.accu-rate.ca/html/english/index.cfm

Anselm

Jon2005

Hi,

Not sure if you have already travelled to the UK, but just to let you know. If you bring Canadian Dollars these can be changed at the Post Office, commission free. You may also find it help to know most shops accept Visa or MasterCard, only Amex is not accepted at so many places. Hope this was helpful.

Jon (in the UK)