I am leaving for Italy in a few days and with the dollar dropping in value, am I better to get Euros at our bank at home or pull the money from the ATM machines once in Italy? My husband and I are having a debate over this, since our banks at home are telling him that he will get the same rate whether getting the money before we leave or in Italy. In fact we will save the 3% that our bank charges from pulling cash from the foreign ATM machines. I was always under the opinion that it's best to get money once in Italy.
We are thinking of taking out money before hand because many of the B&B's that we are staying at require payment in Euros and not charge cards. Years ago we were only able to pull 300 Euros out a day from the machines, perhaps that has changed. I would appreciate any advise you can give. Thank-you

What bank are you with, and what are their charges? Do they charge per transaction?

What's your bank daily limit? Can you up your limit? My bank is $500 per day. My wife and I both have debit cards with different account #'s tied to the same checking account, so our daily limit combined is $1,000. So, that's a little over 700 Euro per day.

What's your bank's conversion fees. My bank charges nothing, but some banks charge up to 3% or more.

I'm think with the conversion fees, getting Euro ahead of time will cost you more than you could if you used an Italian Bank ATM. I think you have to check all the above factors to find out which is best for you.

&quot;<i>our banks at home are telling him that he will get the same rate whether getting the money before we leave or in Italy.</i>&quot;

Sorry - but if you believe that, your bank will then offer to sell you a very nice bridge in Brooklyn.

It is simply not true. Did you ask them what rate they are charging?? Your rate out of an ATM will amost certainly be better. Plus you'd have the security/safety issues w/ carrying all that cash from home.

Well, BoA &quot;gives&quot; an exchange rate of 1.47:1 as of yesterday. The official rate is 1.40:1.

I did a euro transaction with Paypal on Wednesday and got 1.40:1

dave

Thanks for the info. We are using Citibank and they add a 3% charge at the ATM machines if you do not pull from their bank machines. Yes, you pay each time you make a transaction so you take out plenty. Depending on what city you are at, Citibanks are not everywhere. Doesn't pay to waste 40 minutes to find a Citibank to get cash.

Jam,

Citibank is charging 3%, then you must have a Mastercard or Visa branded ATM card. If you have a plain vanilla ATM card, I doubt the foreign transaction percentage fee would apply (more likely a $4 or 5 per transaction fee would apply). I'd check the information you got with the bank's headquarters. Also, check the daily withdrawal limit (it will be in dollars, not Euros).

Banks are trying all manner of semi-fraud to get extra money from users. Most credit cards are adding 3-4% for overseas transactions--this is added by the Bank; Visa and Mastercard International add only about 1% for overseas use. But not all banks do this--Capital One, USAA Savings Bank, and some credit unions don't add the 3-4%.

But the base rate of exchange on ATMs is always better in Europe than it would be for you got get Euros in the US before you leave...either thru TravelEx, Amex, or you bank. The best advice I can give is to use your ATM once you get to Europe.

Like others on this forum, I simply do not believe the bank staff is correct when they claim you'll do better at home than in Europe. That's almost never true.

Best of luck figuring this all out!

Dave

I went to Citibank today and they wanted 1.49 plus $5 if I wanted less than 1000 euros

Jam,
Your bank lied to you . As of ten minutes ago the interbank rate was $1.409 for a euro. Citibank quoted $1.490 for a euro. Using an ATM would be cheaper. Have your bank raise your daily limit.
Henry

Jam, I worked in banking for 11 years and believe me, the people at the bank have NO IDEA of what the banks overseas are charging for currency. And don't ask a travel agent either, they are even more clueless.

Use your ATM card.

This is all totally true. I HAD to get Euro in the US this week, and payed much more than I would have in Italy from the ATM. 1.49 on Friday, plus $15.00 to have the money sent to my bank. Fortunately, 3 other people split the $15.00 charge with me, but the rate was still horrible. I called every bank, by the way.

Right, your local US bank personnel are clueless - they will give you a bad exchange rate and may well not know it. My Bank recently went to 2% for making ATM transactions outside the US. When I mentioned this to two friends yesterday, they said their bank and some others now charge 3%. They should know as the just returned from their monthly European work trip.

Banks in Europe have exchanged a lot of cash for many years. The arrival of the Euro only reduced the lines. They still charge about 1% to turn your currency into Euro; and my money belt is quite comfortable. Although I will pay for the first week's rent with last year's Euro bought for $1.26. I don't think at $1.40+ I'll bring back more that 50 for next year, although I may regret it later. Few if any other Fodorites seem to carry and change cash the way I do.

Thank-you so much for all your information. It is settled we will use the ATM's in Italy to get our Euros.

I used to run 'retail exchange offices' 15 years or so ago.

I would suggest take cash with you and change it into euros at local exchange offices. The best rates are usually offered by 'off the beaten track' exchange offices. They attract people to them by offering unbeatable rates, probably 1% off the 'money market or spot' rate.

This will beat cards and banks by miles.

A tip though: ask exactly what you are getting when exchanging before hand. The rate might be excellent then commission charged OR they advertise no commission but actually get a terrible rate.

hope this helps

totp99, I have never found an exchange office that can beat or even match the rate I get by my ATM card. My credit union ATM charges only 1% markup, with a $1 fee. If I use my BofA ATM card I pay 1% markup and no ATM fee if I use a partner bank's ATM. Even off the beaten track I've never found an exchange facility that comes close to that. Furthermore the ATMs are available 24/7 and they are very easy to find.

Whatever you choose, I would never rely on only one method of getting cash in Europe.

I'm one of those people who likes to have some in advance, so I suck it up and purchase from my home bank foreign exchange desk, a few hundred, for the comfort of arriving with something in my wallet.

Then I use the ATM machines.

I also carry USD or travelers checks as a back up.

And a couple credit cards.

While it is certainly true that the ATM is the best way to go, I would never want to be standing in Italy, with one ATM card that for some reasons decides not to work, and no other funds or means of getting them!

totp99: What a load of hogwash. Sorry, but what <i>may</i> have been true 15 years ago - and especially in some eastern European countries - is not valid today.

Thank you janis, I can't believe I overlooked the part about 15 years ago. At that time, the exchange office off the beaten track might have been a good idea, but the world has changed a lot since then and these days the ATM is the way to go.

As suze says, a back up is always good. You probably won't need it, but bringing a second ATM card and/or cash/TC's is a great idea.

totp99, it is information like yours -- totally wrong and way out of date -- that causes a lot of confusion on this subject. Until you check out your facts, you would frankly do everyone a service by NOT quoting such wrong information.

Incidentally when you say that some off track places may offer you 1% above rates -- good -- that's what nearly all banks do with their own ATM cards. But you'll do a lot of searching to find such a deal from an exchange office.

I have not traveled to Europe since before the Euro. I used to use a credit card for most purchases. Is this still a good idea? Thanks.

Bottom line. Currency exchange costs are minor expenses. Hotels are raising their prices beyond any expectation. Eastern Europeans are flooding into Western Europe. They are 'soaking up' low cost housing. Tourist now have limited accommodations available. An 'auction' is going on. Quit worrying about money costs. Concern yourself with hotels and food! What is the difference if a room is $200 a night or $250 a night? One week...$350. Forget the ATM cost...concentrate on the real costs.