Currency Exchange

[Dennis]

Hi. Okay its not a usual topic on the board. I'll be going to London this fall for two(2) weeks. Is it best to buy the GBP from my bank or are there any other places that would give me a better rate as I'm not keen on spending about $1700 to buy £1000.

regards. dennis

[Currie]

Hello Dennis,

I’m not sure where you are, the USA or Canada, but according to the currency converter at http://pages.ebay.co.uk/services/buyand ... erter.html

GBP 1,000 = USD 1,594

GBP 1,000 = CAD 1,691

Someone else will be along shortly to give you some good advice regarding international travel.

All the best,
Alan

[SarahND]

Hi Dennis,
Too many variables, since we don't know where you are and what kind of currency you want to change, but in general we have found that we get a better rate just charging things on our credit card in England than we get purchasing the actual paper money. That said, you will want some cash with you also.

Another question is whether your bank has a branch in England and/or whether you will get charged a fee at both ends for getting money at an ATM in London.

If you don't have a credit card or other bank card... then I remember we always used to get the best rate buying travelers cheques from the bank before leaving and turning them into cash at a bank in the destination country. But I'm not sure if this is still the case in the new world of plastic money cards

All the best,
Sarah

[Dennis]

Hi Sarah & Alan,

I'm north of the 49th parallel:) My bank, BMO, has no branch in London. The bank charges one rate for selling it to you, about 1.74CAD = 1GBP and when you return they buy it back from you at about 1.65CAD for 1GBP; as well they charge a $5 service fee for selling it to you and another $5 for buying it back from you.

Here is what it is today, from their online banking site: GBP 1000 x 1.7406 = 1740.55 CAD (plus $5 service fee)

The bank says their rate is better than buying at Heathrow. If only I could find somebody coming back here and pay them $1.70 on the GBP, as they would only get $1.65 on the GBP we would both be better off:); but its probably illegal:)

Did notice quite a few money market stores when I was there in november for 8 days, but didn't take the time to check them out.

Regards. dennis

[SarahND]

The bank says their rate is better than buying at Heathrow.

No doubt true. If you have any choice in the matter, never change money at the airport! The rate there is never as good as just going to a bank in the city.

But, as I said, plastic seems to get the best rate these days...

Regards,
Sarah

[WilmaM]

The Post Office in the UK has a 0% commission currency exchange advertised I assume it's for both selling $ etc and buying them back.
Worth a look.

[AndrewP]

Hi Dennis,

It may be worth checking with your bank if your debit card can be used to draw cash from UK cash machines? (the answer should be "yes") Ask them what fees would be incurred, and how their exchange rates compare with cash currency exchange rates from your bank. That gives you access to cash in the UK without the need to carry a large sum of money or travellers cheques with you. Similarly, as mentioned above, your credit card should be fit to use in most countries of the world. Again, check with your bank the fees and exchange rates involved with using that in the UK.

I have used UK credit and debit cards in many countries around the world (including north of the 49th parallel) and had no problems. The fees have been very similar to buying currency or using travellers cheques, but without the need to carry significant amounts of cash.

All the best,

AndrewP

[Dennis]

Hi Andrewp & Wilma,

The bank said that if I'm only making total purchases of a maximum $250 then I'd be ok with my mastercard; that might be about enough for 2 Travel Pass/Oyster cards for 2 weeks. Planning to go to WWRY @ Dominion Theatre. Hotel is just north across from Holland Park. I think that at the post office in London they only take GBP and give you foreign currency; I'd hoped it was buy foreign currency and give you GBP:)

Not going til September, maybe the GBP will have tanked by then:) dennis

[AndrewP]

Hi Dennis,

Did they really mean $250 for the duration of your vacation? Or was it $250 maximum per transaction?

Back in the days when I had a job that involved some overseas travelling, I could easily spend over £500 on a hotel bill, plus many food bills and other purchases coming to a total of over £1000 in a week. That all went on my Mastercard, so that I could reclaim my expenses before my credit card bill came in.

I know with my current employer, if someone is going on a trip and their hotel bill is pre-paid on the company credit card, there is a maximum transaction amount on that card, so it is not uncommon for such bills to be split over 2 or 3 transactions.

All the best,

AndrewP

[trish1]

Hi Dennis

One of the major banks in Australia had an agreement with Barclays bank in UK - there was also a link to one in France - not sure if a US bank was involved - and we could withdraw up to 300 pounds (actually $AU1000 - now 500 pounds) per day via tellers from our Oz account - NO fees - when in England a few years ago. Check what is available with US banks - we found it worthwhile to open a new account with the Oz bank just for the trip. We did for some time rent a private apartment & it used to take me 3 or 4 days of withdrawals to get a months rent - but the landlady was fine with that! I used to deposit it in her bank & tell her when it was all there!

Via the internet we could also transfer money to our credit cards so if we needed extra cash could do a cash withdrawal on the credit without any fees or interest (put the credit card into debit first). The credit companies do now charge a % for overseas transactions but it is not large. We paid all hotel & other large amounts on credit cards in the normal way (amounts of virtually any value) & again paid the card via internet bank transfers.

The most expensive option (by a very long way) - buying pounds or travellers cheques in Australia - and even more annoying when we arrived home with some pounds the rate to change them back was ghastly - should have given them to a charity at the airport!

Trish

Edit - just checked - it seems Bank of America is the US option - see here - noting this is for the Australian Bank
http://www.westpac.com.au/personal-bank ... -overseas/
NB Reading the fee details - they seem to have increased significantly since our trip!