exchange currency
 

Where is best place to exchange dollars for euros and pounds? Should we wait till we get to heathrow airport in a week or try and do it here at our bank. We are getting different advice on the transaction fees charged.

We use our debit card whenever we can, our credit card is 2nd, and we hit the ATMs for walking around money.

ATM in Europe

Don't "exchange" dollars anywhere. For the best rates, uUse your ATM debit card to withdraw whatever cash you need when you get there. Notify your bank in advance that you'll be taveling in Europe/UK.

If you have a Bank of America debit card, you can use any Barclays ATM at no cost. There's one in the arrivals terminal.

Without question, the cheapest and easiest way to obtain local currency is via a debit card at a bank owned ATM where ever you are. Even if you bank charges you fees for using the ATM it will still be cheaper than any US source.

You will get different advices on rates because they are indeed different.

Looks like your interest is in the transaction fee. Here is a rough estimate regarding various fees for $100.

$ cash to £ cash at US airport >12%
$ US bank account to £ cash in US ~10%
$ cash to £ cash in UK ~10%
UK ATM using my worst US debit card 7%
UK ATM using my best US debit card 0%

I hope you get an idea.

"UK ATM using my best US debit card 0%"

If and only if you use the best ATM.

"Best" doesn't just mean "lowest or zero visible commission", ATMs not owned by banks (most UK ATMs are owned by banks, but many aren't) and charging a fee are legally required to display that there's going to be a fee before you start the transaction and to declare the amount of fee before the transaction completes.

What's not visible is the conversion rate used at an ATM. Travellex has a near monopoly on easily-accessible ATMs at Heathrow. As far as anyone can determine, their conversion rate is peculiarly favourable to them.

Since life (and most people's mental bandwidth) is too short to calculate how much you lose on each transaction, or snoop out the non-Travellex ATM in a remote staff canteen, the wise thing in Britain is to get a small amount from a Heathrow ATM, then stack up at a city-centre bank ATM later.

Watch out for minimum transaction fees imposed by your bank for foreign withdrawals - it makes withdrawing small amounts of money very expensive

ATM with your debit card. "Changing" money is a waste of money.

Thank you all so much!!! This has helped a ton. You all gave a much better explanation than my Bank of America online chat.

I have been checking out my local banks for the best rates to get some Euros before we start on our river boat cruise on the Danube next month. When I checked CNN currency exchange the rate was $600 converts to $454... (I realize no one really gets that rate) For $604 at Wells Fargo I would net 425 Euros after a $7 fee and the difference in the exchange rate.
My question is will I get a better deal than what is offered by Wells Fargo by using my ATM card at a bank in the cities along the Danube. I know the rates will change before we go but I was just interested if the above deal was a good one at Wells Fargo.

If your U.S. bank isn't linked to a bank in Europe, I think it's always best to get your cash in Europe. I always get as large an amount as possible because Wells Fargo (my bank) has always charged $5.00 for an overseas withdrawal, no matter how much I get.

If I have euros left over, I just save them for my next trip.

I've had my bank change my daily limit to $500.

I'm rethinking how I pay for more expenses in Europe, as my Chase Mileage Plus Explorer card has recently changed their policy so that I no longer pay the 3% fee for foreign transactions.

Casey: you will always get a better rate using a cash machine in Europe.

You'll pay a fee to WF (I think $5 but it might be $4 depending on the type of account you have. Because I have multiple accounts at WF they actually refund my ATM fees up to 4X a month. Even so I generally use my credit union ATM card and keep the WF for back up.)