converting cash at Banks

UNI4MER · Veteran Member

converting cash at Banks

Melissa5 · Guru

Leslie: I think that many banks do charge fees if you use your ATM overseas...but it's still very convenient. That's how we get our cash on vacation. Our bank charges a fee per transaction if we use another bank's ATM machine. So it's best for us to get the maximum amount of cash out of the ATM machine...which is equivalent to USA $300 for our card. Our bank charges the same transaction fee whether we take out $20 or $300. So we take out $300. This way you don't have to wait in line at a bank.

Also the last time I checked, Capitol One still offered a credit card that doesn't have a foreign transaction fee...and some other banks are beginning to offer this also. So sometimes you can use a credit card instead of cash, when possible.

Some people bring lots of cash with them, but we don't like to do this...if you lose the cash or have it stolen, that's a big loss all at once.

I bring travellers checks only as an emergency back-up. I don't actually use them on vacation...I get them wherever I am able to get them for no fee. Then when I don't need them on vacation, I just spend them in my home town.

Let's see what Michele will advise.

Michele Erdvig · Host

Leslie,

Does your bank charge per transaction and also levy a charge for a percentage of the cash taken? Not all banks do so. Have you checked on a few other banks to find their rates? It could be worthwhile opening a new checking account just to cover your trip and get an ATM card that is better.

If that is not possible, I suggest you use a credit card wherever you can. Since it is too easy to lose cash my best advice would be to buy traveler's checks. You can purchase them in $100 increments with no problems. You will still have to go into the bank to exchange them. The banks will charge to exchange cash or traveler's checks. It has been a while since I've done that. You are probably looking at a fee of 3% and up, depending on which bank you use.

Michele

tony2phones · Guru

From what I have gathered from forums over recent years the best option is to use a credit union ATM card, minimal fees and genuine exchange rate. I have heard that the Capital One card has no conversion fee but a very slightly less favourable exchange rate.

Michele Erdvig · Host

Yes, credit union ATM cards are usually better than banks since the members own the credit union. I always use my Cap One card for great rates with the exception of using World MC for the car.

Michele

UNI4MER · Veteran Member

Yes we have applied for and obtained a capital one world card where there is no foreign transactions fees and have rented and paid for a car, after getting many quotes through Dooley and selected the best one. The most surprising thing about this trip is the Euro/$ exchange rate which makes everything you do in Ireland so much more expensive. Ideally using the CC works great if it can be used everywhere. It seems like it is just a matter of deciding how much Euro's to carry around and the best way to convert to and from US$.

Bruce

-- Edited by UNI4MER on Wednesday 17th of August 2011 10:18:50 PM

-- Edited by UNI4MER on Wednesday 17th of August 2011 10:19:38 PM

-- Edited by UNI4MER on Wednesday 17th of August 2011 10:21:44 PM

tony2phones · Guru

I Think you might find that despite the drop in value of the $ that the overall cost might not be that much different to last year and better than say 2008 when prices in Ireland were really high and the value of the $ really low. Car hire prices have increased due to the increase in world wide insurance premiums. Irish hotels have also been criticised lately for not passing on the reductions with VAT incentives but as non Europeans can claim back the VAT on their purchases this would have little effect on visitors from outside the union. There are lots of deals to be had in Hotels and restaurant's. It is rare for me to carry more than 50 or 60 euro in cash, most bars will take cards if you are having a meal and it is unlikely that you would need to spend that much cash for anything else outside your accommodation.

murphy · Guru

I have taken a fair amout of cash to Ireland the last 2 times, and got along quite well. I know the conventional wisdom is to use the atm. However, I used all three methods the last time and tracked all the transactions. After all the "fees" were tabulated on my credit card statement and my bank statement, here is how it all came out regarding the conversion fees in March/April 2011: We exchanged $2000 cash at banks, received 1374 Euros for a rate of 1.455. We took 240 Euros out of atms, and my account was debited a total of 348.18 for a rate of 1.429. We purchased 311.57 Euros worth of goods/services on my visa card, and my cc statement showed that I had spend $448.82 total, for an exchange rate of 1.437; these being averages of all transactions over 2 weeks.

Since we keep all our cash (we only use the newer $50.00 bills that are reddish in color) in the same location that we safeguard our passports, we feel fairly secure....in Ireland, not sure I would do this in all foreign countries. I use a passport wallet with a slot for the passport, slots for credit/atm cards, and an area for cash....$'s and Euros. This passport wallet fits nicely into my lambskin neck pouch that I wear under my shirt, and my wife under her blouse. Granted, if we lost or had this stolen, we would lose everything, so maybe it would be better to keep some of these items in different places to prevent that.

This works for us and I wouldn't hesitate to do so again. The difference between the use of the atm vrs changing cash at the bank was about $26 for our 2 week trip if my math is correct, and in the grand scheme of total trip expense, not worth stressing over if you really want to take cash instead of using plastic, in my humble opinion. Dan