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Currency Exchange
Ponge
Registered User regular
Registered User regular
Well I'm heading from Britain to the States at the end of June with some mates for a month long trip. Having just seen the news it seems that the dollar exchange rate is now at the highest its been for 26 years at 2.01. I just have a few questions as to how to get the most bang for my buck when i'm changing my money over.
We each have around 1500quid to exchange, so if its worthwhile lumping it together for a better rate or something we could do that.
1. Should I go change now, or wait until after May 10th when the British Treasury are expected to raise interest rates? Will this raise have a positive or negative effect on exchange rates from my point of view?
2. Although the exchange rate seems to be over 2.01, everywhere I look is offering me figures of around 1.9 for exchanging. Is this about right for a commision-free service? Or is there anywhere else I could look for better figures.
3. Should I exchange over here in Britain, or over in the states? _Can_ I exchange in the States?
4. Is this all inconsequential as I don't really want to be travelling accross America with $3000 odd dolllars on my person at any one time. Are travellors cheques a good option (we'll be hostelling and motelling it most of the time, so not the most secure places to keep cash or cheques) or should I just bite the bullet and try to find a credit card that I can use abroad. I really don't want to get hit with their own exchange rates and service charges (around 2.5% of the purchase, or larger on money withdrawal). I've heard about some sort of Visa Prepay Debit cards that you can use all over the world. Anyone know anything about these?
Thanks guys, I know thats a lot of questions, would really appreciate any advice.
We each have around 1500quid to exchange, so if its worthwhile lumping it together for a better rate or something we could do that.
1. Should I go change now, or wait until after May 10th when the British Treasury are expected to raise interest rates? Will this raise have a positive or negative effect on exchange rates from my point of view?
2. Although the exchange rate seems to be over 2.01, everywhere I look is offering me figures of around 1.9 for exchanging. Is this about right for a commision-free service? Or is there anywhere else I could look for better figures.
3. Should I exchange over here in Britain, or over in the states? _Can_ I exchange in the States?
4. Is this all inconsequential as I don't really want to be travelling accross America with $3000 odd dolllars on my person at any one time. Are travellors cheques a good option (we'll be hostelling and motelling it most of the time, so not the most secure places to keep cash or cheques) or should I just bite the bullet and try to find a credit card that I can use abroad. I really don't want to get hit with their own exchange rates and service charges (around 2.5% of the purchase, or larger on money withdrawal). I've heard about some sort of Visa Prepay Debit cards that you can use all over the world. Anyone know anything about these?
Thanks guys, I know thats a lot of questions, would really appreciate any advice.
Ponge on
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Probably but as an American I've had a pain in the ass getting exchange with Canadian currency. Most banks charge you a premium if you don't have an account with them. I suspect you'd be better doing it in the UK, but that may just be an idiot Yank talking.
Visa has a travel prepaid debit card. That might be a good bet. I can't find anywhere online that mentions the costs associated with it though. Provided you can withdraw cash from it at an ATM and you aren't planning on hiking the Appalachian trail with no stops in towns over population 5 a debit card will see you right. I don't know how much they'll charge for it though.
A quick email to Visa might give you some good info.
Yeah, the figure $2.01 is only what Banks will offer each other when doing large scale commercial transactions. For the end user the exchange rates are lower.
Further to this, the "commision free" services aren't actually commision free. They just calculate the rate allowing for a bit of profit instead of taking it off as a percentage at the end.
If you're changing cash in the US (that is to say, actual banknotes as opposed to travellers cheques or similar) make sure the notes you take are Bank of England. I had a hell of a time getting some random airport cashier to accept Clydesdale Bank fifties.
1) Generally if the UK will raise interest rates, that will tilt the exchange rate further in their favor. If anything, US currency strength is going to decline in the forseeable future.
2) Commission-free services like on london high streets or whatever are rip-offs to fleece tourists. You're best off going to a bank to exchange.
3) I worked in the UK for 3 months. Barclay's and BofA have a reciprocal agreement that lets you withdraw without paying ATM fees..all you do is put in your bank card and you exchange at the time of withdrawal..given that in-bank exchange rates are best, this makes more sense.
4) Traveller's cheques aren't very useful. Just travel with a bank card. Depending on how many mates you have, you could well be violating customs restrictions by bringing that much in cash across, anyway.