Update 5/24/23: Deal is back through December 31st. There’s now a public landing page. Hopefully this offer now works for everyone, let us know. (ht Thomas)
The Offer
American Express business cardholders – check your emails for the following offer (subject: Welcome offer enclosed. <your name>, American Express Global Pay is now available)
Earn 30,000 Membership Rewards points after you make at least $5,000 equivalent of foreign exchange payments within 90 days of being approved for American Express Global Pay.
You’ll also get 1 point per $30 sent on an ongoing basis.
The Fine Print
You can earn 30,000 Membership Rewards points after you make at least $5,000 equivalent of foreign exchange payments within 90 days of being approved for American Express Global Pay. To be eligible for this offer, your application for American Express Global Pay must be received by December 31, 2022. This offer is only valid for foreign exchange payments for goods or services. It is not valid for same currency transactions (e.g., U.S. Dollar to U.S. Dollar). For example, if you order a payment in the amount of EURO 4,200 within 90 days of being approved for American Express Global Pay, and if we charge you USD $5,000 for those EUROS, then you will be eligible to receive the one-time bonus award of 30,000 points. This exchange rate is for illustration purposes only.
American Express will award one (1) Membership Rewards point for every USD $30 equivalent of foreign exchange payments that your business sends using American Express Global Pay. The maximum award per payment is 4,000 Membership Rewards points. This offer is only valid for foreign exchange payments. It is not valid for same currency transactions (e.g. U.S. Dollar to U.S. Dollar), and it is not valid for any other products. For example, if you order a payment in the amount of EURO 10,000, and if we charge you USD $11,000 for those EUROS, then we will award 367 Membership Rewards points (11,000 divided by 30 = 367 points). This exchange rate is for illustration purposes only.
In order to benefit from this offer, your business must first designate an existing American Express Card that is enrolled in the Membership Rewards program to which we will award the Membership Rewards points. The Card must be linked to the same User ID as your American Express Global Pay account. Once we award points to the Card Member’s Membership Rewards program, the Card Member decides how to redeem those points, not you. It is your responsibility as well as the designated Card Member’s responsibility, to find out if you are, or the designated Card Member is, liable for any federal, state or local taxes as a result of receiving or using points. You are also responsible for tax information reporting, if any, that is required in connection with the receipt or use of points by the designated Card Member.
In order to benefit from this offer, your American Express Global Pay account and the designated American Express Card must be in good standing at all times, including the time of points fulfillment. No Membership Rewards points will be awarded for payments made through American Express Global Pay before we complete the processing of your request to designate an American Express Card to receive the points. In the event a designated American Express Card is canceled for any reason before we award the 30,000 bonus points, we may allow you to designate a different American Express Card to receive the bonus points. This offer cannot be combined with any other Membership Rewards related offer. If we find that you have abused this offer, we may cancel this offer and any points awarded pursuant to this offer.
Our Verdict
I got an email with this offer, not sure how widely it’s been sent out. The ongoing earn rate is probably dwarfed by the fees. The initial welcome bonus looks interesting, though. It looks like fees are waived for the first 90 days, so this might be an easy-ish way of netting 30,000+ Membership Rewards points if you have a foreign vendor to pay. Let us know how this works out, in practice, if you try.
Save more, spend smarter, and make your money go further
Stock markets and major commodities such as oil and gold seem to get most of the mainstream financial market headlines these days. Despite being the largest and most liquid trading markets in the world, the global currency markets do not nearly get the same attention.
There are a few key reasons for this – the lack of a true central currency exchange, the relatively small daily price changes and the seemingly opaque reasons for changes in currencies.
However, the value of our nation’s currency can have a strong affect on the stock market and the commodities markets as well as have a real affect on our lives. Our currency’s value is a basic fundamental component of our wealth and our ability to purchase goods – especially in this age of globalization. If we pay attention to the currency market trends, we can benefit by using this information to plan ahead for a vacation, search out deals on foreign products or take this knowledge into account when making our investment decisions.
For businesses, the value of a local currency can be even more important. A strong currency will make our exports more expensive to foreign buyers while possibly making imports downright cheap for us to buy.
As a currency trader, I can tell you that there are many economic factors to take into consideration when it comes to evaluating a currency’s strength. Some economic factors can have more influence at different times and for different countries.
Below, I touch upon four factors that I believe to be among the most important economic indicators anyone can follow by reading the news.
1. Interest Rates
The first factor contributing to the general strength or weakness of a currency is a country’s interest rate. Simply, interest rates are the amount it costs to borrow money. The interest rate level is moved higher or lower by a country’s central bank to either stimulate or slow down an economy. Higher interest rates impose a more costly fee to borrow money while lower interest rates lessen the fee and usually spur more borrowing (or access to cheap credit) in an economy.
When it comes to demand for a particular currency, however, the higher the interest rate usually means the higher the demand for that currency. Lower interest rates usually decrease the demand for a currency. The reason investors look to buy currencies with higher interest rates is it creates an additional rate of return on their currency exchange. A trader is compensated by the interest rate differential when the trader buys the currency with the higher interest rate compared to the lower interest rate currency. There is a popular currency trading strategy called the “carry trade” that seeks to exploit the differences in country’s interest rates (see more on the carry trade here).
The mechanics behind this can take some time and effort to fully comprehend, but the general take away is: Higher interest rates make a currency more attractive.
2. Inflation
Inflation is next in our economic factors list and is defined by the rise in prices of goods and services. When a product rises in price, it signals that there is an underlying demand for that product. Higher prices may not seem good to a consumer, but it is generally considered healthy for a country to have a moderate increase in inflation in a growing economy. Many central banks have a target inflation rate for their economy of around 2 percent a year.
When an economy sees too much inflation, the central bank will try to cool off rising prices and access to cheap credit with an increase in interest rates. This brings us back to number one in our list, where we see that higher interest rates make a currency more attractive. So in a growing economic environment, rising inflation rates will tend to increase expectations that interest rates will rise, which will in turn make traders have a positive outlook for the rise of the currency.
There are also downsides to inflation when not accompanied by a growing economy called stagflation (high unemployment, low growth, high inflation) and the dreaded deflation, which is when prices are in decline. This is usually a drag on an economy as prices of goods are falling, leading to declining wages in worker paychecks and less money workers will have to buy goods.
3. Economic Growth
The strength of an economy can go a long way to boosting the strength of the nation’s currency. A strong growth rate in a country will see a growing demand for products and services with better job prospects for workers as well as being an attractive destination for capital and investments.
The easiest way to watch a country’s economic standing is to pay attention to the gross domestic product (GDP). A strong GDP reading is growth of 3 percent or more in many cases, while growth close to zero percent or a negative reading shows that the economy could be headed for a recession. A typical definition of a recession is two consecutive quarters of negative GDP growth.
In an economy like the United States, which is driven by consumer spending, expanding growth that produces more jobs and better wages will allow workers to feel wealthier and help to further stimulate the economy through domestic consumption. More growth can bring higher inflation rates and the expectations for interest rate increases. Foreign investment and demand from companies abroad can also play an important factor in boosting the local currency of a strong economy.
4. Current Account Balance
The last on our list is the current account balance. It is considered to be the most extensive gauge of cross-border transactions of a country. Simply put, it is the total amount of goods, services, income and current transfers of a country against all of its trading partners. A positive current account balance signals that a country lends more to its trading partners than it borrows, and a deficit current account balance shows that the country borrows more from its trading partners than it lends.
This total amount of trade can influence the country’s exchange rate positively if there is more demand for that country’s goods (and currency) from other countries. A deficit or borrower country will see less demand for its own local goods and currency overall.
Conclusion
Economics and currency forecasting are both very much inexact sciences. Price movements can seem volatile and hard to understand, but for those seeking basic insight into currency trends, these important economic factors can go a long way.
Zachary Storella is the CEO of currency news website CountingPips.com.
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When embarking on a journey to foreign countries, one crucial consideration that often tops the checklist is how to exchange currency. Many travelers ask, “What’s the best bank or credit union for foreign currency exchange?”
Whether you’re preparing for a trip abroad or have just returned with a wallet full of foreign cash, knowing where to exchange foreign currency can save you time, money, and hassle.
Basics of Foreign Currency Exchange at Banks
Exchanging currency involves the conversion of one country’s currency into another. Banks and credit unions are common places to exchange currency, but the rates they offer can vary widely.
Currency exchange rates are determined by the interbank rate (also known as the wholesale or market rate), which financial institutions use when they trade among themselves. High currency exchange fees or unfavorable rates can significantly affect the value of your money.
Besides, foreign transaction fees may apply when using a credit or debit card overseas, and they can quickly add up. To avoid these fees, you might consider a bank that offers cards with no foreign transaction fees. Similarly, some banks charge a currency conversion fee for exchanging money, making it even more important to shop around.
Key Considerations when Selecting a Bank to Exchange Currency
When you decide to exchange currency at a bank, you should consider several factors to ensure you’re getting the best deal. These include the availability of foreign currencies, competitive exchange rates, fees and charges, speed and convenience of service, and online or mobile options.
20 Banks that Exchange Foreign Currency
1. America First Credit Union
America First members can exchange up to $5,000. They also provide an online ordering system, making it easy to order currency before a trip abroad. However, like many credit unions, they may have fewer physical branches compared to national banks.
2. Bank of America
As one of the largest financial institutions in the U.S., Bank of America offers customers the ability to order over 70 types of foreign currency online. Customers can have the currency delivered to their home or pick it up at a local bank branch. However, Bank of America does charge a delivery fee for orders under a certain amount, so it’s worth ordering a bit more to avoid the extra cost.
3. Capital One
Capital One offers currency exchange without any additional fees, which is a significant advantage for those looking to avoid currency conversion fees. This could make them an appealing option for anyone wanting to exchange foreign currency.
4. Chase
Chase Bank is another popular choice for exchanging currency. They provide a service where you can order currency and have it delivered to your home or local Chase branch. However, Chase sometimes imposes a limit on how much you can exchange.
5. Citi
Citi customers can exchange foreign currency and have the option to hold multiple currencies in a single account. This can be particularly useful for frequent travelers or those who deal with various currencies regularly. Their exchange rates are competitive, but it’s always wise to compare rates from multiple financial institutions before making a decision.
6. Citizens Bank
Citizens Bank offers a foreign exchange service that lets you order online, then pick it up at a local branch. They offer 50 major currencies.
7. First Citizens Bank
First Citizens Bank can exchange over 70 currencies for its customers. Customers have the option to order online, and then pick it up from their nearest branch.
8. First Horizon Bank
First Horizon Bank, a regional financial institution in the Southeast U.S., offers over 65 currencies. If you wish to use their service, you will have to visit a branch.
9. Huntington Bank
Huntington Bank, primarily serving the Midwest, offers foreign exchange services to its customers. However, the availability of certain foreign currencies and the exchange rate might not be as competitive as larger, nationwide banks.
10. Navy Federal Credit Union
Catering primarily to members of the armed forces, Navy Federal can exchange your currency if you’re a member. One advantage for members is the ability to avoid high currency exchange fees. However, their availability of foreign currencies may be limited compared to larger banks.
11. PNC Bank
PNC Bank offers foreign exchange services to its customers. They can provide many currencies, making it easier for travelers heading to multiple destinations. They don’t charge any transaction fees, but there is a delivery fee for smaller orders.
12. Regions Bank
Regions Bank provides foreign currency services to their customers, offering a broad range of currencies. You’ll need to visit a local branch.
13. Service Federal Credit Union
Service Federal is able to exchange currency for its members. SFCU offers over 60 types of currencies. They also have an online system that allows members to purchase currency and have it delivered to their home, adding a layer of convenience.
14. State Employees Credit Union
State Employees will exchange currency for its members. They offer a variety of currencies, though not as many as some larger financial institutions. However, they make up for it with a competitive exchange rate and lower fees.
15. TD Bank
TD Bank offers 55 different currencies. You can order the currency online and have it delivered to your home or picked up at a local branch. Additionally, if you have a TD Bank account, you may receive preferred rates.
16. Truist
Truist, formed by the merger of BB&T and SunTrust, exchanges currency for its customers. They provide a wide range of currencies, and customers can order online or at a branch. However, fees may apply, so it’s a good idea to check before making any transactions.
17. U.S. Bank
U.S. Bank customers can order foreign currency via app or online and pick it up at a local branch. It will be delivered to the branch of your choice the next business day.
18. USAA
USAA, which primarily serves military members and their families, offers a wide range of currencies, making them a good choice for those heading to multiple destinations.
19. Wells Fargo
Wells Fargo is another large bank that allows you to exchange currency. They offer a broad range of currencies, and customers can order online and have the currency delivered to their home or pick it up at a branch. Wells Fargo also offers a foreign currency savings account that can hold numerous currencies, a handy feature for frequent travelers.
20. Wings Financial Credit Union
Wings Financial offers over 90 currencies. Members can order online and have it shipped to their home, adding an extra layer of convenience. However, like many credit unions, they might have fewer currencies available compared to larger banks.
Bottom Line
The ideal financial institution for exchanging currency will depend on your specific needs, such as the currencies you require, your location, and your membership or affiliation with the bank or credit union. Additionally, while it’s crucial to find a bank that offers competitive rates, it’s equally important to be aware of the associated fees and charges to avoid any unwelcome surprises.
Frequently Asked Questions
Can I exchange currency at any bank?
Not all banks and credit unions exchange foreign currency. It’s always a good idea to check with your bank to see if they offer this service.
When should I exchange currency for my trip abroad?
It’s generally a good idea to exchange some currency before you leave, especially if you will need cash right away for transportation, tips, or meals. However, remember that exchange rates fluctuate, so you may want to monitor the rates and exchange your money when rates are favorable.
Can I use my debit card in foreign countries?
Yes, you can typically use your debit card internationally. However, you may be subject to a foreign transaction fee and ATM fees. It’s a good idea to check with your bank before you leave to understand any potential charges.
Is it a good idea to exchange money at airport kiosks?
While airport kiosks are convenient, they often have less favorable exchange rates and may charge higher fees. It’s typically best to avoid exchanging large amounts of money at these kiosks.
What should I do with unused foreign currency?
Most banks will allow you to exchange your foreign currency back to your home currency. However, not all banks will take coins, and some may only exchange certain currencies.
JPMorgan Chase is the largest bank in the United States and is the third-largest bank in the world. With a bank of that size, you would expect some exclusive benefits for its top clients, and Chase doesn’t disappoint.
Chase Private Client offers more robust clients with a combination of concierge banking, expert investment options from J.P. Morgan, significantly reduced fees, and other benefits.
Many banks offer concierge services, but the Chase Private Client program offers those same services and more, plus can give you the power of J.P. Morgan’s investment expertise. To be sure, not everyone will qualify for these upgraded services, but the rewards for those that do are great.
How to Qualify for Chase Private Client
Chase is pretty specific about the qualifications needed to take advantage of Chase Private Client benefits. In fact, they only have one stipulation. To qualify, Chase requires that you have an average daily balance of $150,000.
That’s not saying that you have to have $150,000 in cash in your Chase checking account. Chase just requires that you have invested $150,000 in assets with them.
While cash in your checking account is considered one of those assets, others include savings accounts, retirement accounts, and investment accounts. Any liquid asset that you have with Chase counts. Mortgages, lines of credit, and other loans do not apply.
If you don’t yet have $150,000 invested with Chase, you may have luck getting a Chase account specialist to waive that amount. They do this for certain clients, but only for a certain period of time. If you would like to be a Chase Private Client, you can sit down with a specialist to discuss your options.
So, how much does Chase Private Client cost? It’s free if you meet the above requirements.
Chase Private Client Banking Benefits
Fees seem to be a fact of life with banking. Overdraft fees, out-of-network ATM fees, and minimum balance requirements all add up over time.
With a Chase Private Client account, these fees don’t have to be a fact of life. In fact, this is what they offer:
No monthly service fee when you link a Chase Private Client checking account to a CPC savings account.
No fees for domestic and international wire transfers
No ATM fees worldwide when using a non-Chase ATM (including international debit card purchases or ATM withdrawals). They also refund the fees charged by other banks to use their ATMs, up to five per month.
No stop payment fees or bounced check fees.
No fees for counter checks, money orders, or cashier’s checks.
No exchange rate adjustment fees for debit card usage
No insufficient funds fees
No card replacement fees
No foreign transaction fees
No fee for 3 × 5 safe deposit box. Plus, you get a 20% discount for larger boxes.
You also get a daily ATM withdrawal limit of up to $2,000 when using your debit card. And your daily purchase limit is increased to $7,500.
Chase Private Client Credit Card Benefits
Chase Private Client customers get a slightly higher sign-up bonus on the Chase Sapphire Preferred Card. You can earn 60,000 bonus points after spending $4,000 on your card within three months of account opening versus 50,000 points offered to the public.
As a Chase Private Client, you used to be able to bypass Chase’s infamous 5/24 rule. However, that is no longer the case.
You do still get rushed replacement of your debit or credit card almost anywhere worldwide at no charge. You may also get a higher sign-up bonus in-branch for certain credit cards (on a case-by-case basis.)
Chase Private Client Personal Banker
Banking can be a hassle. You park, walk into your local branch, wait in line, and have to explain from scratch all your needs to a teller or account manager you’ll likely never see again. One of the most powerful benefits of being a Chase Private Client is that you’ll have your own private client banker.
You’ll be assigned one to two personal bankers who will take care of all your banking needs. They’ll also provide you with priority service and help connect you with other experts within the bank to help with all of your needs.
Chase Private Client Is Not Available in All Locations
Your bankers can help with mortgages and business banking needs and even get you significant rebates in the process. But not every Chase branch can cater to Chase Private Clients, and in fact, most of them don’t. Currently, they only have offices available in 23 states.
All states are not equally represented. Chicago alone, for example, has five locations, while Idaho only has one. Still, chances are that if you live in a metropolitan area or one with a relatively large population, Chase will have you covered.
Even without a physical branch available, you can still use their private banking service line. These are special phone lines dedicated to Chase Private Clients.
That means you get to talk to real people more quickly without having to wait. In addition, you’ll get priority service whether you need to order more checks, resolve issues with your debit card, or you need help with wire transfers or other transactions.
J.P. Morgan Client Advisor
Chances are, if you have $150,000 invested with Chase Bank already, you’re looking for that money to grow. In addition to personal banking services and Chase Private Client benefits, you also get the power of J.P. Morgan.
You’ll have a J.P. Morgan Private Client Advisor who can help you assess risk, talk about time frames, and help determine what type of investments are right for you.
Your J.P. Morgan Private Client Advisor will be available if you want to discuss investment strategies, retirement, or saving for your children’s college tuition. They’ll give you access to J.P. Morgan’s financial experience and help craft a strategy to reach your investment goals.
While you don’t have to use J.P. Morgan’s services, it’s available to you should you choose. They can help you with a personalized investment strategy, mutual funds, college planning, security-based lending, and annuities. You also get free online stock and ETF trades with You Invest℠ by J.P. Morgan.
With more than 160 years of experience, they’re definitely a good resource to have. Plus, there’s the bonus of getting advice based on the whole of your finances, rather than one single segment.
Business Banking Advisor
For clients who have a small business, they offer a dedicated advisor and a team of small business specialists who can help provide financing options and advice. They can also help businesses improve their cash flow and offer solutions for accepting payments.
Some other business benefits of Chase Private Client include no fees for electronic deposits for both Chase Platinum Business Checking and Total Business Checking accounts. In addition, Platinum Business Checking account holders have reduced minimum balance requirements.
Family Member Eligibility for Chase Private Client
One of the great things about Chase Private Client is that you don’t have to keep it all to yourself. You can share it with your family as well. If you share an account or accounts with a member of your family, they are eligible to enroll as well.
So, if your children are 18 or over and share an account with you, they can take advantage of all the benefits without needing a $150,000 balance.
That includes eliminating most fees associated with most checking and savings accounts, banking concierge service all their own, and J.P. Morgan investment services should they need it. This isn’t just a benefit for you; it’s a gift you can give to others.
You’ll be able to share all these privileges with those most important to you. It can save you money as well if you’re helping to support a child during college. They can save on ATM fees and other banking services, which puts more money in your pocket in the long run.
Other Chase Private Client Benefits
In addition to saving on fees and financial advice, there are some lesser-known benefits that come with Chase Private Client.
You get $750 off closing costs on loans. That’s $750 off every loan, including mortgages. As an added bonus, you’ll receive priority processing for all loans and senior underwriting support. They also offer discounts on home equity lines of credit.
It’s not all about saving money while banking; you’ll also be enrolled in the Chase Private Client Arts & Culture Program. This gives you free admission to museums in cities all over the country. From the Guggenheim in New York to the San Diego Zoo, you can enjoy culturally enriching attractions from coast to coast.
Ready to Join Chase Private Client?
For people with a large amount of savings on hand, that answer could very well be yes. It’s a high entrance qualifier, but the advantages are pretty clear.
Chase Private Client virtually eliminates banking fees. If you need investment advice, J.P. Morgan is there with a plethora of financial guidance.
Personalized banking associates, priority banking services, priority phone services, and other white glove services will appeal to almost everyone. Chase Private Client offers many benefits, and most people would love some personalized attention from their banks.
If you qualify, you should, at the very least, sit down and talk to Chase Private Client banker. You can head into your local branch or go to their website and request that they contact you.
By Peter Anderson6 Comments – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited November 20, 2018.
Ok, ok. I know what you’re going to say.
Going on a European vacation is NOT frugal.
Going on a trip like this means that you’re going to be spending a pretty penny. Traveling to Europe these days isn’t cheap, the Euro is currently worth somewhere in the neighborhood of about $1.28 U.S. dollars. That exchange rate makes the prices of a European vacation sting right of the bat!
But put that aside for a moment, let’s assume that you’re already going on a trip to Europe, what are some good ways to save money? H
ow can you have a great time, while not spending nearly as much as you could?
Ways To Save Money While Traveling In Europe
Here are a few ways that my wife and I have found to save when we traveled in Spain, France, Italy, Greece and Croatia on a recent trip.
Plan ahead: Even if you’re spending a lot of money on a European vacation or cruise like we have in the past, you can save a ton of money by booking your vacation ahead of time, up to a year or more in advance can really save you a lot of money. It can be tempting to try and wait and to try and get a last minute deal, but often the best deals are to be had when booking far in advance. Look the deals up as far ahead of time that you can, and hopefully you’ll find a great deal.
Travel during the off season: You might want to consider booking your trip during the slow season for whatever your destination is. Rates are often far cheaper during the off-peak times of the year. The crowds will often be smaller too! We actually did this for one cruise in Europe, and saved a ton. It was also a perk to not have as big of crowds at the sites like the ruins in Athens.
Be flexible with travel: Often if you’re flexible with the days that you travel you can save some money. When booking try to see what the rates are if you book mid-week travel instead of the more popular weekend travel.
Try alternative lodging options: Instead of staying at an expensive hotel, consider staying at a cheaper lodging alternative like a hostel, or you could even try couchsurfing!
Know what you’re spending: When you’re buying something in a Barcelona gift shop or at vendor in a Roman square, it can be easy to forget just how much money you’re spending. Remember you’re buying that souvenir in Euros – not dollars! That means you’re paying 1.28 times as much. That $50 item is actually $64! Take a quick pocket conversion chart or smartphone with you so that you can refer to it when buying things.
Set spending limits for yourself, and don’t go over!: Before you go on your trip, set up a spending limit for yourself, and don’t go over it. Once you’ve reached your limit just take more pictures as souvenirs!
Use a travel guide: Using a travel guide for your travel destinations will help you to find cheap places to eat and little seen free events.
Some destinations offer discounts for Americans: research your destination as some European cities will offer discount packages for Americans to help offset the weak dollar. For example, Florence, Italy has a program like this.
With all the planning, preparations and excitement in getting ready for your trip, it can be easy to forget -you’re going on vacation to relax and see the sites. So don’t forget to have fun!
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You’ve probably had to exchange foreign currency when traveling to another country, whether you were on a vacation or a business trip. And you likely realized it can be expensive.
Though you typically have to pay fees to access foreign currency, it’s worthwhile to learn how to do so for as little money as possible. Just knowing the ropes can help you shave down the moolah you pay to get a supply of euros, yen, or pesos.
In this guide, you’ll learn:
• Where can you convert currency?
• How can you get a good rate of exchange on converting currency?
• What are the best and worst places to convert currency?
The Benefits of Exchanging Foreign Currency
Though many places will accept credit cards overseas, it can still be useful to convert your dollars to foreign currency. Here’s why:
• There may be places that only accept cash, such as when you buy food at markets, haggle for souvenirs, or shop at stores that don’t accept any other form of payment.
• Having some cash is a great backup form of payment in case you run across issues with your credit card.
• Cash can be a helpful way to create a budget while traveling. Say, if you give yourself $30 a day for food, having that cash in your pocket can help you avoid going overboard vs. swiping too much with a credit card. That can keep your budget in balance.
• Exchanging foreign currency also gives you the potential advantage of avoiding currency conversion fees and staying within your vacation budget. For instance, some international retailers give you the opportunity to pay in local or your own country’s currency. If you choose the latter, you may get a poor exchange rate.
By exchanging foreign currency ahead of time, you may be able to avoid paying more than necessary and better take advantage of more favorable exchange rates.
Finding Places to Exchange Currency
Now, for the question of where to exchange currency: In general, the best places to exchange foreign currency are locations you can visit before you head to the airport.
Banks and Credit Unions
Most major commercial banks will have foreign currency available for you to exchange. Your bank may only charge you the exchange rate and no additional fees depending on the currency you want to exchange. In this case, you may nab the most cost-effective method to exchange currency.
Your financial institution may offer several ways to request foreign currency — online, over the phone, or at your local branch.
Not all banks keep every possible currency on hand (and the same holds true for credit unions), so you may need to do some advance planning. It could take several business days to exchange currency.
Recommended: What Is a Foreign Currency Bank Account?
Withdrawing Cash Before You Leave On a Trip
It may be a good idea to have some cash on hand to exchange as you need it while traveling, especially if you’re unsure of how much you need. Keep in mind that you may have fewer options for saving on fees.
However, if you convert cash as you need it, you won’t be stuck wondering what to do with leftover foreign currency after you return home.
Another option is to withdraw cash in local currency at ATMs overseas. Ask your bank if it has any fee-free ATMS in international locations. If not, double-check to see if there are any fees, and what foreign exchange rate you may be subject to. Depending on what you learn, it could be a smart move and be a good solution to where to convert currency.
Online Currency Conversion
The last answer to “Where can I exchange currency” is with online currency conversion companies. Many offer competitive fees and exchange rates. Some may only charge you the mid-market rate — known as the “true” exchange rate or what banks charge each other. Conversion fees may be a flat rate or a percentage of the amount you exchange.
These services, like Travelex, may make cash available at their bricks-and-mortar locations or get funds to you at home.
Another advantage of online currency conversion companies is the convenience. In many cases, you may be able to initiate a currency conversion 24/7. You may also be able to receive the foreign currency as soon as within a few minutes.
If you choose to go this route, compare fees and exchange rates to see what the best fit is for your situation.
Recommended: How to Deposit Foreign Currency in Your Bank Account
Worst Ways to Exchange Foreign Currency
Now that you know where to exchange currency, take a closer look at some places to avoid, where converting currencies can wind up being more expensive than necessary.
Airport Kiosks
Exchanging your cash at kiosks at the airport usually results in some of the highest fees and less favorable exchange rates out of all the options mentioned above. However, they can be a convenient option, especially if you weren’t to exchange any currency ahead of time.
Prepaid Debit Cards
Though it depends on the prepaid debit card you choose, you may be able to use this kind of plastic outside the U.S. at international ATMs. If you do, however, you may be subject to fees such as third-party ATM fees and foreign transaction fees. Plus, the foreign currency exchange rate may not be great.
Some foreign currency conversion services may offer these cards; again, check fees and rates to see if this is a good deal.
Local Currency Conversion Kiosks
You may find currency exchange kiosks at highly-trafficked tourist attractions or even your hotel. Like airport kiosks, they’re a convenient place to exchange currency, but you could be paying high fees and facing lower than average exchange rates.
Alternatives to Exchanging Foreign Currency
Instead of exchanging cash and using it while traveling, you might use your credit or debit card if you’re traveling to another country.
Using Your Credit Card On Trips
When using your credit card overseas, try to choose one that doesn’t charge foreign transaction fees. That way, you’re not paying more fees than necessary. As mentioned above, choose to pay with your credit card in local currency to avoid paying more fees. (There is also the option of international credit cards you might explore.)
You’ll probably also want to avoid using your credit card for a cash advance during your trip. In most cases, you’ll end up paying a cash advance fee and interest starts to accrue immediately.
Before going on your trip, make sure to notify your credit card issuer or bank of your plans. That way, they don’t accidentally deny your transaction believing it’s fraudulent. Fortunately, though, credit card protection likely covers you if you are scammed while traveling.
Using Your Debit Card in a Foreign Country
Debit cards are typically backed by Mastercard or Visa, brands which are known around the world. You may find that you are able to use your debit card for transactions when traveling, especially where those brands are welcomed. Your debit card may also help you withdraw cash from an ATM internationally.
The Takeaway
Exchanging foreign currency before you go on your trip is most likely your best option as it tends to offer the best fees and exchange rates. Using your credit card is also great, either as a backup, or if you want fraud protection. Whichever option you choose, shop around to ensure you’re getting the best fees and rates.
Working with your bank is the best way to ensure you’re financially sound when you go on your trip. And having the right banking partner will also keep you in good shape every day when you’re home. A SoFi Checking and Savings account — though it doesn’t currently offer foreign currency exchange — has plenty of features designed to help you maximize your hard earned dollars. This includes no account fees, automatic saving features, and a competitive annual percentage yield (APY). Plus, you’ll spend and save in one place, which can simplify your money management.
Better banking is here with up to 4.20% APY on SoFi Checking and Savings.
FAQ
Do banks exchange foreign currency?
Yes, most banks will exchange foreign currency. However, the types of foreign currency available will differ from one bank to another. Your financial institution may need a few days to get the currency you need.
Is it better to go to a bank or currency exchange?
In general, it’s usually better to go to a bank because you may not have to pay conversion fees depending on the currency. However, currency exchanges may also offer competitive currency exchange rates.
Where can I change currency for free?
When wondering “Where can I exchange currency?” one place where you may be able to do so for free is at your bank. This, however, will depend on the currency and your bank’s policy.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances. SoFi members with direct deposit can earn up to 4.20% annual percentage yield (APY) interest on Savings account balances (including Vaults) and up to 1.20% APY on Checking account balances. There is no minimum direct deposit amount required to qualify for these rates. Members without direct deposit will earn 1.20% APY on all account balances in Checking and Savings (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 4/25/2023. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners. SOBK0223015
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