Originally Posted by Fredd

tom911's suggestions are bang-on IMO. ^

ATM fees aside (and our Canadian credit union doesn't print its fees separately but just includes it into the exchange rate), it's unlikely you'll get a great exchange rate withdrawing Canadian cash from your US-based account. Maybe it's not worth worrying about for one small transaction that will result in the convenience of having some loonies and toonies in your pocket.

Like tom911, we now carry a couple of foreign-fee-free credit cards, but your 1% fee is a lot better than the typical 3%.

I would plan to use my credit card and withdraw only the cash I think I'll need for small purchases. Having a significant amount left over that you have to convert back is a double whammy that you want to avoid.