Exchanging currency
 

Hi,

Wanted some advice about exchanging currency. Will be in England/Scotland/Wales four weeks this summer. Do you suggest buying a lot of pounds now (if yes, where is the best place to buy them?) to lock in rate, or take a chance it may fall more and just buy in Great Britain.

Many thanks!

Do not BUY any pounds anywhere - it is a massive waste of money.

You pay for as much as you can with your credit cards and pull cash from ATMS (from your checking account with a 4 digit pin). This will ensure you the best possible rate of exchange - 1 or 2% over the Interbank rate - versus 7 to 10% over the Interbank rate by changing cash (the lower rates in the UK, the higher rates in the US).

Why throw 8% of your budget out the window?

Thanks a lot. I had no idea. When I was there last year (Italy) they would only let me withdraw $300 out each day. Do you know if Great Britain is like that too? Does it matter what ATM you use?

It's generally your own bank that determines how much you can withdraw at a time from an ATM. Ask your bank to raise your daily limit. Then, if you come across an ATM overseas that imposes its own limit, all you have to do is find another ATM and make a second withdrawal.

And to reinforce nytraveler's advice, do NOT buy pounds!

StCirq is correct. In preparation for my next trip to France, I recently asked my bank to raise my ATM daily withdrawal limit. They asked me how high did I want it! It couldn't have been simpler.

I use my ATM (or check card) for spending money in Europe. I use my credit card for major purchases such as hotel bills.

That said, let me add a few suggestions that will help avoid any unpleasant surprises.

First, have an alternative means for acquiring spending money in Europe. There is always a chance that your primary card will not always work.

Secondly, know the fee structure that your bank enforces for off net transactions using your ATM or check card. Bank of America is where my primary checking account is housed, BUT in Europe I try NOT to use my B of A plastic because of the $5.00 fee for off net transactions.

In England and Wales you should be OK if you use Barclays. It is a big bank with branches all over. In Scotland last summer I saw no Barclays outlets. Barclays has an affiliate bank in Scotland, but I don't remember what is it because I did not see any of them either. (I knew at the time.)

To counter the B of A $5.00 charge I got a debit Master Card from a local credit union. Despite the fact that it has the Plus and Star symbols on the back, it would not work in Switzerland and only at some banks in Scotland.

As for credit cards, be aware that some banks levy a 3% foreign transaction charge on all non US purchases. I use a Capital One card that to date has not charged me 3%.

The above advice about not swapping US dollars in currency form is sound. You will pay for it. The last time I swapped currency the charge was at least 7%.

We got to Switzerland from France not long before the euro was introduced. After we arrived in Lausanne, we discovered about 60 francs in bills stashed away in an inner pocket. We had no plans to return to France at the time. So what to do? I went ahead and changed the French francs.

&quot;<i>When I was there last year (Italy) they would only let me withdraw $300 out each day. </i>&quot;

ATMs in Italy may limit how much you can take out <u>per transaction</u>. But as StCirq says -- it is your own bank that limits how much you can withdraw <u>per day</u>.

Contact you bank and have them raise your per-day limit . . . . .

I don;t understand the need to carry around so much cash. You can pay for hotels, meals, train, car rental, museum entrances, day tours, etc all with credit cards. You need cash only for small daily expenses (newspaper, ice cream, perhaps a taxi fare) - we have found the cash we draw lasts several days.

Just back from Uk (arriving home 4/29). Pulling money from the ATM, my bank (Regions) gave me at exchange rate of $1.9886 plus a $2.00 fee.
Using my AmEx with the hotel I got an exhange rate, from AmEx, of $2.03766.
My brother used his Capitol One Visa for all other large charges and we were charged $1.58 exchange for the Euro while in Ireland and France, with no other fees. Careful with your credit card, even if they bring the reader to your table.With all the Eastern Europeons coming into the UK, they have a scam where they pretend that it does not read, they wipe the card on their shirt to clean it, but they read your card with a reader under their shirt. Also, they pretend to drop your card, then read it with a reader strapped to their ankle.
Happy trails.

I'm looking for similar advice as I'll be in Scotland for 15 days this summer.

The current 7 day average interbank rate GBP to USD is 1.95483

I just called the international banking department at my bank and was told I could purchase pounds today for a 2.0769 exchange rate.

I'm confused because (except for the horrible value of the USD), the above sounds pretty reasonable to me.

Assuming the exchange rate stays similar, are you all saying that I would get a better rate than this if I wait and use credit cards and debit cards in Scotland???

Thanks for any advice.

Maybe I just answered my own question. If I am doing the math correctly, the above is approximately a 6% charge. But here is the info from my bank (it sounds like it would be about 3% if I use my debit card and am careful about per-transaction fees):

Is it better to purchase currencies before my trip or to wait until I arrive?

Most international travelers find it convenient to purchase a small amount of local currency before traveling in order to avoid the need to visit a currency exchange immediately upon arrival at their destination.

Can I use my debit card to purchase foreign currency overseas?

Your debit card can be used to purchase banknotes at most international ATMs that are operated by foreign banks. The local bank will assess fees and these fees will vary bank to bank. The foreign currency exchange rates on ATM and merchandise transactions are calculated by the credit card company (MC or Visa) and are generally calculated at 3% over the interbank (internet) rate of the day.

At any ATM, the currency conversion rate is, or is close to, the interbank rate. Visa International adds a 1% fee to your bank; YOUR BANK adds any add'l % for &quot;foreign curr trans&quot;. So ATMs provide the absolute cheapest exchange rate you can find; it then depends on YOUR BANK as to how much extra % is tacked on.

Capital One does not add %, not even the Visa 1%; they charge $1.50 per withdrawal for using a non-CapOne ATM.

I know that many of us DESPISE traveler's checks in Europe, but I wouldn't be so quick to eliminate them as a good possibility for a European visiting the states. I don't know what it costs them to buy US dollar TCs in Europe, but here in Naples, Florida which is teeming with European tourists, virtually every restaurant and shop takes them for full value. Some may ask for an ID, most do not. One waiter friend of mine says hardly a night doesn't go by that he doesn't get at least one foreign tourist paying with TC's. The restaurant actually likes them as they deposit them as cash, as opposed to losing 3% on all the credit card sales. And my BofA big branch in downtown will not under any circumstances exchange foreign currency to anyone who isn't an account holder, but they happily cash American Express traveler's checks at full face value for no charge at all -- and according to my usual teller, they do it a LOT. What's more I have yet to hear of any business here that charges a fee for accepting them as payment.

Duh, please ignore my previous post. I thought I was responding to the issue of the European looking to change currency in the US but without a bank account. I just realized that's over on the US board.

Carry on.