Precruise Currency Exchange

[CruiserBruce]

1 minute ago, Roz said:

I assumed they made their profit on the exchange rate.  Where can I do better than 6%?

 

Roz

 

ATMs, to start with.

[Roz]

I didn't know that.  I always thought they were more expensive.  Maybe I was thinking of foreign transaction fees.  Until recently, my cruises haven't involved having to deal with foreign currency, but now that I've started doing European river cruises, that's changed.

 

Roz

[Hlitner]

2 hours ago, Roz said:

I assumed they made their profit on the exchange rate.  Where can I do better than 6%?

 

Roz

At European ATMs.  The rates are generally 1-3% off of the wholesale rate of exchange (the best rate).  We have several bank/credit union ATM cards that charge zero fees which makes it even better.  As an example, the wholesale rate as of this minute is $1.153.

 

Hank

[Flatbush Flyer]

1 hour ago, Roz said:

Not sure how to calculate the exchange rate.  I got 200 euros and the teller took $247.42 out of my acct.  I wanted euros in hand when I got off the plane, and also didn't want to have to order the euros.  The bank teller just went back in the vault and got them for me right there.  Did I make a stupid mistake?  

 

Roz

At the wholesale bank exchange rate (today) of approx. $1.15 = 1.00€, the bank paid about $30+? in the trade. You paid about $47 for them to hand it over. That $17 difference works out to be 7%+\- because you don't know what transaction fees (for the bank and/or for you) may be in the mix. Also, the wholesale rate/fees for some currencies may be higher/lower. 

 

Wells Fargo has been mentioned and you may have paid a bit less for your €200 there. Our local NorCal bank, Mechanics would be close to WF, assuming our total purchase of currencies in a single transaction exceeded $300 since there's no $10 transaction fee once you exceed the $300.

 

Mechanics Bank works well for us since there are no foreign ATM fees added and the bank reimburses other banks' ATM transaction fees. So, we replenish foreign currencies as needed at ATMs where that 7%+\- would be somewhat discounted. Bottom line however is that you will pay some premium for a currency exchange and the highest rates/fees you will pay will be at "currency exchange" companies (particularly at those airport kiosks or lookalike "ATM" machines.

 

As you search for a better rate among banks at home, do recognize that a 2% rate drop on your $247 purchase would only have been about $5 in savings. IMO, you could do better things with that time investment.

 

BTW, we usually never sell back unused foreign currency because we'll probably use it again either on another trip or as added crew tips now or in the future.

[Roz]

Thanks to both of you for the info.  

 

Roz

[SRF]

22 hours ago, Roz said:

I went to Europe in November, and my bank was able to give me euros at no added cost.

 

Roz  

 

Oh, they cost you.

 

Probably built it into the exchange rate.

 

Similar thing, if you see a money exchange in a foreign country that advertises NO FEE, they have horrible exchange rates.

 

They WILL make their money.

[Roz]

Thank you pointing that out.

 

Roz

[wheezedr]

Just to jump back in here.  Among the best ATM cards are those issued by Schwab and Fidelity.  They have no transaction fees and reimburse bank fees.  The reimbursement shows up almost instantaneous.  Do check their maximum withdrawal but since you do not pay fees it is also reasonable to take out smaller but more frequent withdrawals.  While on a cruise you may be near to banks infrequently, on a land tour you generally have lots of exposures.  Do be aware that with Schwab you can only show 2 weeks of travel online.  If you are going longer and want to be sure that they are aware you will need to call them in advance.  Also I still suggest you carry at least 2 ATM cards as well as 2 credit cards when you travel.  While ashore I will carry one of each myself and let my DW carry the alternate.  Should one of us get wallet or purse nabbed we still can use the alternate cards.

[MicCanberra]

I have had no issues with a Citibank debit card for ATM cash withdrawals.