marronn

any advice on the best place to buy British currancy,in the U.S. or wait until we are in London?? Thanks

Gardyloo

ATM at the airport.

Pegontheroad

Absolutely wait until you get there. As Gardyloo says, get them at the airport. Not at the exchange window. At an ATM.

janisj

yep -- don't 'buy' £ anywhere.

flanneruk

"get them at the airport. Not at the exchange window. At an ATM."

Does anyone have any evidence for this sweeping generalisation?

At Heathrow, almost all available ATMs are operated by forex specialists like Travelex, not mainstream banks. Those forex specialists almost universally give us fewer dollars or euros for our pound than we'd get at my - or anyone else's - village post office. Never mind what we'd get if we shopped around every one man kiosk in central London.

I've no idea whether Travelex and their clones rip foreigners off as inevitably as they rip us off. But I can't believe for a moment that not one single bank in New York (which purports to be a global financial centre) can offer the value for money in retail forex we take for granted from a state-run corporation in the tiniest British village.

So does anyone really know that buying your sterling from the Travelex ATMs at Heathrow the entire British population tries to avoid like the plague actually does guarantee better value than going into your local Citibank or credit union branch?

Andeesue

I've found bank ATMs. Granted, it's been a year and a haf since I've been to Heathrow, so perhaps things have changed.

janisj

I've only used bank-owned ATM at LHR. Barclay's and 1 or 2 others

xyz123

In London, almost all merchants take credit cards although a few have restrictions requiring a minimum purchase. Use your credit cards everywhere they are taken. Make sure you have a credit card that does not charge a foreign exchange transaction fee on top of the one visa/mc charge. Some enlightened banks, even eat the 1% visa/mc fee (Capital One the prime example). That way you hardly need any cash and don't have to bother.

This past February I spent a week in London. I eat at moderate priced restaurants but this is true even of most fast food places. It's true at most convenience stores. The only time I found it necessary to use cash was at an internet cafe near my hotel and once when I went to a pub and ordered a pint...other than tht, public trransport, lodging, theatres, yada yada yada, I used credit cards. I made a £20 withdrawal when I arrived and still had £12.60 left when I went home. Just watch how for some "friendly" merchant offering to write up a charge in your currency (presumably US dollars but it can be any currency). They are ripping you off.

nytraveler

Do not "buy" pounds at all - that is throwing money out the window. For the best rate of exchanges and lowest fees (2 or 3% versus 8 to 10% for changing cash - or in the US) you use your credit cards for everythng possible and pull cash from your checking account via a debit card at bank ATMs.

Gardyloo

Unfortunately it appears that the bank-branded ATMs at LHR have gone away, and been replaced by Travelex machines.

In my experience one usually gets whacked when buying foreign currency in a different country. Not only is the exchange rate unfavorable, but you also pay a separate transaction fee. With ATMs you may pay a transaction fee, but usually the rates are pretty decent. You're paying for a service, after all, even if it does seem like you're a captive audience. I do wish that there were still some bank ATMs at Heathrow; if you're spending significant time in the UK it probably would be wisest to get a minimum amount of "walking around" money at LHR, then look for a partner bank's ATM once you're out of the airport (e.g. Barclays < > Bank of America.)

BigRuss

Bank ATMs - they exchange at the Interbank rate (the actual foreign exchange rate) and you only pay whatever fees your own bank charges. If your bank is a credit union or CapOne, you'll pay nothing or close to it.

DO NOT WITHDRAW CASH WITH CREDIT CARD. You will be charged fees for the withdrawal and interest from the moment of the transaction - there is no 25-day grace period like you have for your bill.

ParisAmsterdam

Be sure to alert your bank and credit card companies of your travel plans.

As you have no doubt gathered by now, using an ATM to withdraw money from your bank account is the way to go. If you can access
more than 1 account with your card, be sure the funds you wish to access are in the primary account of the 2.

I can't say about the ATMs at Heathrow these days but I did notice ATMs at the Montreal airport last trip to Paris that offered the option of Euros. Check at your departure airport... you may be able to withdraw 100 pounds or so to get you started once you arrive.

Southam

Unlike other posters, I drop my plastic addiction in England and elsewhere in Europe. My home bank's credit card will charge $2CDN for each and every purchase in foreign (except US) currency. If the item is worth $20, that means I am paying 10 per cent service. If I withdraw the equivalent of $400 on my ATM card, which charges a fee of $5, that's only a 1.25 per cent fee. Cash, withdrawn in large amounts, is cheaper than credit cards, at least for me.

JP

The ATM locators on both mastercard.com and visa.com both show an assortment of non-Travelex ATM's at Heathrow. Are they out of date?

Cosmia

I went to London for the first time a month ago. I withdrew 100 pounds at a heathrow travelex atm to get me started, and my bank shows I withdrew $159.52, including $1.58 of fees. My bank charges no atm fees.

Just get enough cash to get started at the airport and then find bank atms as needed. That's what I always do. Just be aware of your own bank's atm fees.

xyz123

Big Russ....you are giving conventional wisdom and my only quibble with it is that it might not be true. While I do not advocate using a crtedit card for a cash advance, the reality is that different banks have different policies. I know several banks that do not chaqrge any fees for a cash advance on a credit card and yes it is true interest starts to run as soon as you get the cash and 24% sounds like an obscene amount but......it's 2% a month so if you're in a pinch, and you have a bank that doesn't charge fees for cash advances and have to withdraw the equivalent of say $100 and pay it back as soon as yu get home (or even sooner via internet online banking), for a month it'll cost you $2...while I hate fees too it's not all that bad so as with everything else, you have to know the policy of your individual bank before making general statements. Some charge, some don't. some charge 3% for a foreign transaction even if done through dynamic currency conversion, some charge nothng. Visa/mc charges 1%. Some banks pass it along, others eat it.

All the fees are spelled out in your cardholder agreement. Read it and look around for banks that have the following:

1. No annual fees
2. No foreign transaction fees
3. A nice rewards program.

They most assuredly do exist but you have to look.

Freda_Seddon

I always get some foreign currency before I board the plane- about $100-200. I also review my banks charges for credit card and debit charges when overseas. Be sure to notify your bank before you leave- also credit cards. Make sure you have a 4 digit PIN number - no letters. ATM cards with a chip are the norm outside of the USA.

April

Is there any problem in prepaying on a credit card before you leave home?

longhorn55

No, credit card companies are always happy to have your money. But why would you want to do this?

jamikins

Some credit card issues in the UK wont allow you to overpay your balance. My friend tried this and they returned the money to her bank account (the card and account were with the same bank) and she ended up having to use her bank card anyways. So check with your card issuer.