Best Place to Exchange Currency?
 

I need to convert US funds to german marks for an upcoming trip to Germany? Where can I get the best exchange rate? I have an American Express travel office locally that will exchange it - is that the best?

Use a debit card in the country you are traveling. Put your card in the machine in Germany and you will get marks. Be sure you aren't getting a "cash advance" that is expensive, and be sure your card has a four digit pin. Check with your credit card company to see how much the transaction is since some now carry heavy fees for overseas transactions. Regardless, exchanging travelers checques or currency normally costs more than using a debit card.

Absolutely use either a debit card or ATM card. It is by far the easiest and cheapest way to get local currency. Once you get to the airport you should be able to find a machine and make a withdrawal. Also, that way you are carrying smaller amounts of cash and avoid the possibility of losing too much. I travel internationally all the time and do this in each country.

Some points to keep in mind with an ATM card that you may wish to check. First, make sure that you have a 4 digit PIN. Also, make sure that the account that you want to take cash from is your primary account. The German ATMs don't give international patrons a choice of Checking, Savings, etc. but always default to the primary account, which is normally your checking account. Also, see what their fees are for international withdrawals. Most US banks charge $3, but German banks don't charge, so that means you will be paying a total of $3 in fees every time you want local currency. If you are withdrawing $300 at a time that is a great rate, if you're withdrawing $50 ouch! There are also some US banks that don't charge at all if you're going to be doing extensive international travel it would be worthwhile to look for one of those.

I also believe that ATMs give you the best rate.
However, what happens when you arrive on a weekend and ATMs doesn't work - I belive this would be a worst case scenario.
Next my Citi card did not work. It took me a couple of phone calls to find out why: My Citi Card (a money market account) was a savings account for the ATM, not a checking account.
Next, spend all your D-Marks before you come back - from 2002 Germany has Euro.

Isn't the whole idea for ATMs to be available 24x7??? I'm yet to encounter an ATM that would be turned off on weekends.

Your card may not work, but that's another story. That's why it's important to check with your bank prior to the trip whether it is set up for international use.

In Japan, it is often usual to have many ATM's locked up after hours. (I've seen this in Kobe and Nagoya, not so much in Tokyo).

I always use my ATM or no cash advance fee credit card overseas, but I do take a bit of extra American money to change in case of an emergency when the ATM's are not available.

I use ATMs extensively in Asia, and continuously in Bangkok. IME it is not unusual to come across machines that routinely run out of cash during weekends or long holidays.

Posted from Eugene:

Isn't the whole idea for ATMs to be available 24x7??? I'm yet to encounter an ATM
that would be turned off on weekends.
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You are right, however, what happens when Mr. Karmann arrives on a Friday evening, wants to get cash in a German ATM, it does not work, all banks closed, maybe even on Monday (Germans have lots of holidays).
I ONLY USE ATMs TO CHANGE/GET MONEY, IT'S THE CHEAPEST AND BEST WAY. TO BE SAFE I HAVE SEVERAL CHARGE AND CREDIT CARDS AND PINs FOR ALL OF THEM.

I've never been to Bangkok (hopefully, soon), but I've never had a problem using ATMs at any time of day in Europe, Asia, or Africa (with the exception of PIN "letters vs. numbers" issue which was my fault in the first place). If one was out of order, there always was another one nearby. I guess I just was lucky. Thanks for letting me know about potential problems, I'll keep it in mind in the future.

I've never found a European ATM closed at night or weekends or whatever. It's good to know that this may be the case in Asia.

I have never been worried about not being able to get money from an ATM, though it is a good idea to carry at least a couple of cards that you know will work (such as on or two ATM/Debit cards and a few credit cards). Case in point:

I walked up to an ATM in the Frankfurt airport last December, opened up my wallet to pull out my ATM card only to discover that I must have left in the last ATM I used several weeks prior. Fortunately, I just used my VISA card. Even with the cash advance fee, It was probably still better than changing money.

Personally, I think it's really a good idea to have at least a small amount of the local currency on hand prior to arriving at the destination.

Since I do my banking at Fleet bank, they can get me whatever national currency I want, with sufficient notice, at same exchange rates as at an foreign ATM. Having something like $50 in cash in my pockets as I walk off the plane makes me feel more comfortable about my ability to tackle minor problems than if I had to look around for an ATM, especially if I haven't been to that country before.

Be aware that many overseas ATM's do not have letters on the buttons along with the numbers. So, if you've been given a word (such as "oops") for your pin, be sure and memorize the corresponding numbers (in this case, 6677).

I agree that it's helpful to get off the plane with some of the local currency.

JP

Good point. Also be aware that in some countries (e.g. Japan), many ATMs have inverted keypads (standard computer/adding-machine numeric entry style) where the numbers increase bottom-to-top, instead of top-to-bottom as found on telephones and US ATMs. I tend to remember patterns, and not numbers, and let my fingers do the thinking... not a recommended practice for some ATMs.

You absolutely have to arrive in the country with some cash. The almighty dollar is not so almighty to a German cab driver late at night or to a German food vendor when you're hungry.
A little trick that I use is as follows:
I check the implied conversion rate for in-flight shopping (say 1 USD = 2 DEM). Then I tell the in-flight shopping FA that I need some cash in DEM when we land and ask them if they'll do a deal after the end of in flight shopping. You then give them 50 USD and they give you 100 DEM - done!

Although everyone thinks ATM's are the way to go, AMEX TC's in marks from AAA only carry about 1/2% discount. That is the same as a $2 fee on a $400 transaction at an ATM machine.

TC's are not as convient as cash. German banks may charge a fee, and I do not know who else in Germany will. Banks in London and france do not charge a fee.

In London, department stores cash TC's with no fee.

It is nice to walk out of the airport with some local currency in your hand. Get some coins, if you think there is any possibility you will need to use a telephone.