Guide to Exchanging Foreign Currency
When journeying overseas, it’s crucial to maximize the value of your currency to cover expenses. foreign currency exchange travel
This guide aims to help you get the most out of your money when dealing with foreign currency exchange, thus avoiding unnecessary fees.
- How to Exchange Currency There are several methods to exchange currency for international travel, and the choice depends on your planning, location, and timing.
- Online: Exchanging currency online before your departure can save you money on rates and fees. Websites like Coinmill.com, Travelex Worldwide Money, and BestExchangeRates.com allow you to compare rates and purchase currency. Some of these platforms even offer to buy back any unused foreign currency upon your return.
- In-Person: Your local bank or credit union can offer good rates while helping you avoid high fees. Inquire if they have a foreign banking affiliate at your destination, which could save you additional money and fees if you need cash while there. Some banks can even ship the ordered currency to you, or you can arrange to exchange in person.
If you’re a frequent traveler, consider opening a foreign bank account. This allows you to access cash anytime you’re in the country without the hassle of exchanging.
- When to Exchange Currency Planning ahead is key. Save money by tracking exchange rates before travel and shopping around for the best deal. Use the free Currency Converter app, available for iPhone, iPad, Apple Watch, and Android, to receive up-to-date exchange rates for over 160 currencies and countries.
- Places to Avoid for Currency Exchange There are places where you should avoid exchanging currency:
- Never exchange money on the street as it’s unsafe and you could get ripped off.
- Avoid airports, hotels, or train stations as they often have high currency exchange rates.
- Be wary of currency exchange counters or kiosks that claim “no fees, no commissions.” They usually make their money through higher rates, even if they don’t charge a fee.
- Resist high traffic, city center currency exchange locations that are often independently owned. They often rely on convenience and charge high rates and fees.
- Exchanging Currency at an ATM Yes, you can exchange currency at an ATM. You will be given the exact current exchange rate, and you’ll find the best rates at your bank’s ATM network. However, pay attention to fees as they will vary by institution. Also, use caution with debit cards as some foreign ATMs charge out-of-network transaction fees and may have withdrawal limits.
- Travel-Friendly Credit Card Look for a credit card with low or no foreign transaction fees, and/or those that offer international ATM fee reimbursements. You’ll save money on purchases and rack up perks at the same time. Be sure to let your credit card company — and your bank — know you’re traveling to avoid any freezes on your account.
Now that you know the basics of the foreign currency exchange before travel, don’t forget to protect your investment from the unexpected by purchasing travel insurance.
