For the record: Salomon Smith Barney <i>debit</i> card. No markup on purchases or withdrawals; $1 ATM fee.

USAA Bank San Antonio Tx:

Free chequing account no minimum balance required.

Free ATM card (free debit card if you have a USAA credit card too)

No fee for first 10 or 15 withdrawals each billing cycle on their part and in addition

For those banks in the US that charge you for having the gall to use their machines, you will be rebated this obnoxeous fee. Of course since for the most part European banks do not impose this charge it is a non factor for European travel.

Personally I would never use my main bank for ATM's etc. while on holiday. I would open an account with a bank like USAA (there are others on the web), keep a minimum balance and just before my trip transfer or deposit into the account enough money + some to cover the cash portion of my trip and when I return home simply deposit into my main account the difference leaving again a minimum amount in the account.

This way, if something happens like a stolen debit card number and the account is emptied, you will get your money back with any bank but if it is your main bank, any cheques you might have written before turn to rubber.

We waited till Heathrow and easily found an ATM to get pounds using our ATM/debit card. We used our Visa Credit card for most purchases, after checking that our credit union does not add more than Visa's 1%.

Be aware that even though &quot;museums&quot; in London are free, that doesn't apply to most tourist attractions, only proper museums. We found the entrance fees were substantial for places like Kensington Palace, the Tower and the Tower Bridge, Westminster Abbey.

And, we had no more problem using our Visa credit card in London than we would have found in New York. It could be a different story in the countryside, though.

Is this advice still up to date given the high fees most credit cards are now charging for currency conversion?

yes - the cc fees are still not nearly as high as one pays for exchanging cash or cashing travelers cheques.

The worst you'll pay for using a credit card is 3% above the interbank rate....the best you can do if you convert cash before fees is 7% above interbank.....

And you dont'r have to pay the 3%, just get a credit card from Capital One which charges the interbank rate.

&quot;The worst you'll pay for using a credit card is 3% above the interbank rate....the best you can do if you convert cash before fees is 7% above interbank.....&quot;

This is nonsense. Sure you'll get hammered at a bank, the airport or at some little storefront place. I go to a real currancy exchange company in the financial district where I live and do better every time.

If you are exchanging for some exotic currancy, then you might have a problem. But exchanging dollars for Euros is cheap, if you do it right.

We exchanged a small amount of dollars for euros yesterday, so we'd have cab fare in our pockets upon arrival in Italy, just in case the ATM is down at the airport.
My question is this: on-line the Euro yesterday was $1.22. But the bank insisted it was $1.32. What's up with that??

&gt;What's up with that??
It's simple, the're ripping you off. It's a lot nicer for them to claim they don't charge fees but instead they use their very special own exchange rate. Common practice.

What's up is the point that's being made here. It's still cheaper to pay a fee on a credit card that be forced to use the bad exchange rates for changing hard currency. But we all need to do it to some degree.

To answer my own question, I researched the &quot;mid-market rate&quot; definition of the $1.22 I saw yesterday. It's an inescapable fact of life-- sometimes we get ripped off!
Oh, well, we've covered all the bases we can, re: our credit union only passes through the Visa 1% fee, and we'll use our ATM and credit/debit cards judiciously. Bon voyage!

Yes, San366...get lots of British pounds BEFORE you leave the States. Much easier that way,,,just hang on to them!!!. Then charge your hotels, and use ATM for more cash if needed. (of course this is just our suggestion)
I always get lots of static with this from Fodorites,,but it works for us, so who cares.&gt;?
Your bank will order them for you and the pounds can be sent to your home or for you to pick up at the bank.
Saves hassle when geting to England.
Lots of people will say use ATM entirely in Europe when traveling....but &quot;to each his own&quot;

&quot;<i>Yes, San366...get lots of British pounds BEFORE you leave the States.</i>&quot;

Thank heavens San366 took her trip back in October so there is no danger she will follow this expensive advice. If one has money to burn and wants to carry thousands of $ worth of cash w/ them - go for it.

But first note MaureenB's post - you will pay approximately US10¢ - 12¢ extra per &pound; if you do this. Even on a modest trip one will pay $200 to $400 extra. Not my idea of a good use of vacation money.

That absolutely NOT true....at least the way we do it. ONe does perhaps pay a little extra, but we love having British pounds in hand (but NOT thousands as you said, I don't know where you got that) Sometimes we take 700- 800 dollars worth...and of course we use ATM machines within UK quite a bit. (so obviously we don't get all
that many pounds before leaving home.)

janisj: you have always given good advice about Scotland. Thanks!
BUT , we tend to differ on this money matter...and that is FINE. Let's just respect the others' opinions.

Anyway San366 has, as you said, been on her trip and returned, way back in Oct.
(I guess I'm ornery enough to always get a rise out of people when this subject comes up! &gt) Kind of fun!!!

Use an ATM hooked to your home checking account after arrival.

If you want to have something in hand before landing (although i have never had a problem finding a handy ATM machine at Heathrow) buy some GBP at home - ordered from AAA, your home bank, a currency exchange bureau like Thomas Cooke, AmEx, or at your home airport before getting on the plane.

Maureen,
There is no reason to fear arriving without euro and all the airport ATMs are inoperable. Just exchange enough dollars for euro to cover the taxi fare at a currency exchange counter at the arrival airport. It will likely be less of a ripoff than currency exchanges in the USA.
More than likely, though, you will find a working ATM and be on your way.

Platzman, you are absolutely right. Being a worry-wart, however, I got just 50EU, to have in my pocket for cab fare and snacks in case of starvation at the airport!