We have had money wired from the US to banks in England. There was a fee involved, but I do not recall it to be that out of line (this was 2 years ago). We had to do a lot of paperwork b/c of 9-11 and wait a week or so, but the bank gave us a break on some of the transfer fees because we opened an account.

Make sure you check your ATM fees. This summer we were charged a total of 3% per transaction amount (for foreign currency exchange and conversion rates or god knows what else.) It added up. I later learned there are many, many banks and cards that do not charge 3% for each withdrawal. I used US Bank by the way.

Your question was about the cheapest way of converting dollars into euros.

Get the money out of your bank in your own currency. Take it to wherver in the Eurozone you have to pay the deposit.

Then walk up and down any major shopping street to find out which bank or bureau de change will give you the best net, net rate.

Retail forex is a highly competitive market in Europe. Not everywhere in Europe, since "location, location, location" often encourages traders in protected sites to make a margin. But there's almost everywhere a street with a dozen or so competitors who can be induced to keep each other honest.

That's never the case in the US, which is why buying foreign exchange in the US is really always best avoided.

I can't even begin to understand why anyone would get nervous about carrying that little in cash around.

I have two accounts with ATM cards for this type of situation as well as if one of my cards or accounts does not work. Thus, I have a back up plan. I also went into my local Wells Fargo Bank branch and requested an increase on my withdrawals, there was no problem. In fact, they offered to increase it higher than I really wanted. I did run into a problem in Belgium in that the ATM machine would only let me have the maximum it was programmed to give out at any one time. I simply made more than one transaction and thus had enough to pay the hotel bill. I also think that if you email the apartment and tell them of your situation and that you will give them a partial payment on the first day and the balance the next day they may be inclined to accept this. If you wait until you arrive to spring this on them, they may be a bit more hesitant. Just a though.

Continued thanks for the great replies. A couple of follow-up questions:

I did some legwork today and found out the following:

My bank charges $3.50 per ATM transaction withdrawal. I have a premium account so that's their special "deal". The lady said that she couldn't tell me the exchange rate for withdrawing money because that was determined by the European bank. Is that so? Of course, that doesn't even count the ATM fees charged by the French bank!

Had I wanted to buy Euros today (and $1.18 to 1 Euro was mentioned as the interbank rate for today, right?) -- the bank would have given me $1.27 for 1 Euro. No other fees because I'm a premium member. Is that "normal"? Seems high. Also, does that mean that if I had withdrawn from my ATM account in Paris, I would have gotten the $1.27 rate anyhow? If so, I might as well get it here!

Anyone see today's exchange rate in Paris? whether through ATM (assuming it's not your US bank that sets exchange) or through Bureau de Change?

We opened the credit union account -- sadly, they will charge us as much ($3.50) per ATM withdrawal. So my limit at my main bank is $1,000 and my limit at the credit union is $500. Just enough for the deposit!

BUT if I can find a place that sells me Euros that's closer to today's rate ($1.18, or even $1.20), it'll be worth it, even with fees, since in Europe, I have no idea what the bank's ATM will give me.

Anyhow....Sorry but this is really getting to me!! I feel that I'm being robbed!! Incidentally, AAA sells a "starter" euro pack with an exchange rate of $1.45 to 1 Euro!!! Highway robbery. Their rate for members is 1.27 Euros to $1...no help at all.

gambader, your original question was with needing 1200 euros to pay for an apartment. Assuming that you get the landlord to agree to a timed payment, and that you up your withdrawal to a maximum of $500, the $3.50 is less than 1% and you can forget about it.

Secondly: The French banks do <b>not</b> charge a separate fee for taking money from their ATM. However, it is possible that ATM withdrawals are at an exchange rate that is somewhere between what the banks charge each other and what they would charge tourists.

You will be charged more than the ATM bank fees for cashing TCs and get the foreign cash at the more expensive tourist rate, and it will be far less convenient. Figure on taking $350 at a time from the ATM and look at the fee as a 1% fee from your bank.

The limit set by your bank is usually a daily limit. - Therefore, just go back to the atm the next day.

Gambader: You will never find a cash-to-cash exchange rate that is anywhere close to the official rate. Your bank has expenses for handling currency -- space, security, personnel -- that do not apply to its processing of ATM transactions.

If the official rate (that is for transactions between banks involving millions of dollars/euros), is 1.18 Euro per dollar, the rate to expect from a bank ATM in France would be about 1.20. Even adding a transaction fee of $3.50 from your bank (there's no fee from a European bank for ATM withdrawals) you are way ahead of any other method of obtaining cash in a foreign currency.

If it takes three transactions to get enough currency, your cost to obtain 1200 Euro would be $10.50 plus maybe $20 for the 1-1.5% built into the ATM's exchange rate -- far better than the
9 cents per Euro (1200 x .09 = $106) that your bank quoted.

This sounds all too confusing go back to what I said originally. I was just to Europe and did this. It's very simple. Just enjoy your vacation when you get there.

Thanks guys. This really helps. Kayd, your math really helped crystallize the difference. I will try to make due with minimal euros until I get there. Didn't realize that the ATM there was SO MUCH more reasonable than our bank exchange rates here. Seems ridiculous.

&lt;&lt; Didn't realize that the ATM there was SO MUCH more reasonable than our bank exchange rates here. &gt;&gt;

If &quot;we&quot; got that notion across (one more time), then this thread (and countless others before it) are worth the repeating...

And it's so entirely logical. No human has to be involved with checking the calculation; a big computer somewhere does all the calculation, and communicating the debit from your account with no (real-time) labor cost...

...but the far more significant difference is the cost of transporting/distributing and keeping inventory a rarely needed item to a location which can serve you on a retail basis... versus unlimited supply <i><u>in</u></i> Europe. Even a teller window (in Europe) cannot match the low cost of the transaction at an ATM machine... if you buy yht euros with US, or any other foregin currency (or traveler's checks), then that bank has the cost of transporting it back to some central bank which will sell it back to some place that wants/uses it.

After reading all this, it seems I'm the only person on this planet to get a decent exchange rate for my &euro; using an ATM. Using a &quot;Deutsche Bank&quot; card I get the official rate for foreign stock at BoA, Scotiabank Paribas and a few other banks. It's not one percent in fees, but much LESS. It's the &quot;wholesale rate&quot;.

Rex,

So using this logic, would Europeans traveling to the U.S. receive a good exchange rate using their ATM cards on U.S. bank machines to withdraw dollars? Because I got the impression from my bank assistant that the ATM exchange rate here for someone wanting to withdraw $$$ was just as bad (buying dollars here in the bank using a European ATM card was what she said)...but maybe I got it wrong. I'm sure U.S. banks would charge a hefty ATM fee for nonbank customers...I guess that doesn't happen in most French banks?

logos999, maybe I should get a European bank account!

&lt;&lt; would Europeans traveling to the U.S. receive a good exchange rate using their ATM cards on U.S. bank machines to withdraw dollars? &gt;&gt;

This is what I believe(d) to be the case, but as you might suppose, I have no firsthand experience to confirm one way or another. I'll see if I can think of some people to ask, by e-mail, about this. Sheila? Other Europeans here? There is also another <font color="Red"><b>TRAVELERS</b></font> message board where I can ask. I'll have <font color="red"><b>TO GO</b></font> there and inquire.

;)

Hi gam,

&gt;I'm sure U.S. banks would charge a hefty ATM fee for nonbank customers..&lt;

Aye, that's the rub.

US banks charge charge as much as $5 per transaction.

((I))

Why do you think that, Ira? I just wondered because I thought the reason there are no ATM fees from European banks to foreigners using their ATMs (at least Americans, which is my only experience) is because of some international banking or ATM network agreement. I know that my hometown personal bank ATM clearly has a message on the screen that says the same thing -- that it will charge fees to a nonbank customer, but only if they are from a US bank. In other words, the same reciprocal agreement.

As for exchange rates, someone above said they are the only ones to get decent ATM exchange rates in Europe. No, I get pretty close to bank intercharge rates when I use my ATm card in Europe. There seems to be some idea from some folks above that individual European ATMs determine their own specific exchange rate, and I don't think that is the case at all.

I don't think people should get that freaked out over a $3.50 ATm fee abroad, though, if that's the only fee. That's higher than my bank (and actually, I have no fee, but it used to be $2 until they recently got rid of them all for marketing purposes), but a few $3.50 ATM fees isn't a very big deal IMO. I don't use an ATM that often in Europe, maybe twice a week. There isn't a big reason you should have to use one that often, if you use credit cards for all major charges.