Exchange Money in US or London?

[DonnaGeoff]

We will be spending two days pre-cruise (Celeb Infinity - June 13) and two days post-cruise. We are thinking of converting some of our money into British Pounds, and are wondering if it's better to go to local U.S. bank to do so, prior to flying over, or to wait until we are in Great Britain and do so in London or even at Heathrow. Advice please? If your suggestion is to wait til we arrive, where do you suggest we do the actual transaction?

Thanks, Donna and Geoff :)

[LipBalmAddict]

Hi there, if you choose to exchange money in London, I'd suggest going to the Bureaux de Change at Marks & Spencer or at a Post Office (definitely not at the airport).

 

And if you happen to have a Bank of America account, you can withdraw cash from a Barclays ATM with no fees and at a very competitive rate of exchange.

[southwestgal]

We like to have some local currency when we arrive so we've gotten some pounds and euros from our bank. The exchange rate was good and there were no additional fees. If we need more during the trip we will use ATMs. Exchanging money at airport locations usually are the worst deal for travelers. In addition you'll be tired and ready to go to your hotel and who wants to spend time searching for an exchange location. In my opinion, much less stress to have a few hundred pounds in smaller denominations and you don't have to waste time on your vacation exchanging money.

[eandj]

Totally agree with southwestgal. We do the same. Because you'll overpay for exchanging money at home, we "buy" a smaller amount at home, just so we have enough for transportation, snacks or other arrival day needs. But once we get to the country, we strictly use the ATM's . We can control how much we need and not come home with a ton of leftovers. :rolleyes:

We use a Capital One Money Mkt fund attached to a debit card. Then we can put cash in the account before we leave and not have the card connected to any of our every day personal accounts. Good for security. No currency exchange fees.

Agree the airport is the worst place to buy or sell leftover currency as far as values.

Most purchases and meals done in other countries are put on our Capital One credit card. We do not allow the purchase point to make the currency exchange rate for us. Cap One does it for us. In Italy some stores offered to do the exchange for us, as a "convenience"....for a fee. We turned that "offer" down every time.

[MATHA531]

A lot depends on just how you wish to get from LHR to your hotel. If you are taking the tube, you can buy your transport media at Heathrow tube station using credit cards. In central London, you will find ATM's on almost every corner, some corners have four on each side. ATM's are basically the best way to purchase sterling at the interbank rate with perhaps a 1% markup over the interbank rate. (BTW Bank of America now charges a 3% foreign transaction fee on withdrawals from ATM's even Barclay Bank ATM's. Most US banks issuing debit/ATM cards do not restrict you to one particular bank to avoid fees). You will find London is much like any US city i.e. you really have next to no need for cash at all as everywhere they take credit cards. Last June I spent a week in London. Upon arrival, after taking the tube in from Heathrow, there was an ATM across the street from my hotel. I made one £20 withdrawals and the 2 £10 banknotes were still in my wallet when I went home. Not once did I spend cash and trust me, I don't live high on the hog. You name it, they take credit cards. Of course make sure you have a credit card which does not impose a foreign transaction fee (many are available today), doesn't charge an annual fee and if possible has an emv chip. A good one to get is the Bank of America travel rewards card which meets all 3 criteria above. If you feel you need some cash, it is easy to use an ATM at the airport. Exchanging cash always involves a mark up of at least 10% above the interbank rate. Totally unnecessary IMHO.

[spirit rev]

If you are a member of AAA they allow you to purchase at the exchange rate without fees. We find this method to be easy. Plus, we don't have to rush to get British pounds as soon as we get there.

[eandj]

If you are a member of AAA they allow you to purchase at the exchange rate without fees. We find this method to be easy. Plus, we don't have to rush to get British pounds as soon as we get there.

 

 

That's interesting because here in Wis. there is a hefty fee. Definitely not where we would go.

[Bob++]

As indicated above, You will be able to manage pretty well here using credit cards. I suggest that you get a couple of ten pound notes from somewhere convenient, the rate won't matter for such a small amount, and that should be sufficient. Should you need more, ATMs are easily found.

 

You should just make sure that your CC does not have restrictions or fees for foreign purchases.

 

The long range forecast for June is looking good. Not reliable of course, but hopefully you will get some sun during your stay.

[whogo]

We will be spending two days pre-cruise (Celeb Infinity - June 13) and two days post-cruise. We are thinking of converting some of our money into British Pounds, and are wondering if it's better to go to local U.S. bank to do so, prior to flying over, or to wait until we are in Great Britain and do so in London or even at Heathrow. Advice please? If your suggestion is to wait til we arrive, where do you suggest we do the actual transaction?

Thanks, Donna and Geoff :)

 

What does your credit charge you for overseas purchases? What does your ATM card charge you for overseas withdrawals? What does your US bank charge you for foreign currency purchases? You will investigate all these if you want to make rational foreign currency decisions.

[Cotswold Eagle]

If you feel you need some cash, it is easy to use an ATM at the airport. Exchanging cash always involves a mark up of at least 10% above the interbank rate. Totally unnecessary IMHO.

 

I would not advise using ATMs at UK airports unless you are absolutely certain they are bank-operated and giving bank rates. Certainly all ATMs at Heathrow are now operated by foreign exchange firms and only give their kiosk rates.

[Bob++]

There are some ATMs that make a charge for their use. By law they have to tell you in advance of the transaction that they are doing this.

 

I am not sure, never having used them, what the ATMs at Heathrow do - In general it is wise to assume that everything in an airport will be overpriced.

[MATHA531]

I would not advise using ATMs at UK airports unless you are absolutely certain they are bank-operated and giving bank rates. Certainly all ATMs at Heathrow are now operated by foreign exchange firms and only give their kiosk rates.

 

ATM's in and of themselves do not do currency exchanges except if you opt for dynamic currency conversion where the ATM will try to sell you this scam and sy it will bill you in the currency of the debit cards. Follow Nancy Reagan's sage advice a couple of decades ago i.e. just say no. The network will do the conversion once the transaction hits the network. Cirrus is mastercard, plus is visa. Their rules for foreign exchange are the same i.e. essentially the interbank rate plus 1% conversion fee. Your bank may or may not pass along the 1%, may increase it or may eat it. As long as you don't fall for the dcc scam, you will get the same rate of exchange at any atm you use at that instant but bear in mind, 30 seconds later the rate might be slightly different in one direction or the other because foreign currency exchange rates are always changing.

[whogo]

I believe that what Cotswold Eagle is warning you about are currency exchange machines that look and act like ATM's. If there are genuine no fee bank operated ATM's at Heathrow, online forums have not found them.

[QueScaisJe]

What does your credit charge you for overseas purchases? What does your ATM card charge you for overseas withdrawals? What does your US bank charge you for foreign currency purchases? You will investigate all these if you want to make rational foreign currency decisions.

 

This.

There are no definitive rules. You need to balance cost with convenience.

If you can find a good rate at home, bring as much currency as you feel comfortable carrying. Use credit cards without usurious FX fees. ATM's are usually my backup option, but only as they have occasionally let me down when I needed them most.

[Globaliser]

I would not advise using ATMs at UK airports unless you are absolutely certain they are bank-operated and giving bank rates. Certainly all ATMs at Heathrow are now operated by foreign exchange firms and only give their kiosk rates.

There are some ATMs that make a charge for their use. By law they have to tell you in advance of the transaction that they are doing this.

 

I am not sure, never having used them, what the ATMs at Heathrow do - In general it is wise to assume that everything in an airport will be overpriced.

I believe that what Cotswold Eagle is warning you about are currency exchange machines that look and act like ATM's. If there are genuine no fee bank operated ATM's at Heathrow, online forums have not found them.

The proper ATMs at Heathrow don't charge fees, even though they're operated by the currency exchange people. I regularly use them there, and I'm charged exactly the amount I withdraw.

 

Obviously, if you use a foreign card in an ATM, you will pay fees to your bank. But that's nothing to do with the ATM.

 

Automated currency exchange machines are a different kettle of fish; but then with the prevalence and ease of using ATMs all over the world, I can't remember the last time I used a currency exchange kiosk or machine, or changed money at a post office, building society etc. The only stress I might suffer is if I know I'm in a country with a Global Alliance bank (eg Bank of America in the US) and I'm wondering whether I should put some effort into finding an ATM belonging to that bank to save one fee.

 

For one more variation on the theme, Raphaels Bank seems to have done a deal with the Tube to operate ATMs in stations. Some of these will dispense EUR as well as GBP, although I've no idea how the charging works there.