£ to US $
 

Not sure if this is the correct forum, if not mods pls move. Advice please on the lest costly way to exchange £500 to US $ or should I just use my bank ATM card to draw cash in the US?

That would be the least expensive way.

For a UK (or other currency) draw from a US account, this tends to be the best way . . .

For a foreign currency draw from a UK account, it actually depends. UK accounts are notorious for charging a 5 GBP fee on foreign withdrawals, so depending on how much you're taking out, the fee can be more expensive then the rediculous spreads that the cash conversion windows charge. That being said, if you're taking out $500, the ATM is probably the way to go, but for smaller denominations, you might want to think about other alternatives.

I usually just use Travelex now as they offer a competitive rate & the convenience of picking the order up at most UK airports and paying with a Debit Card at that time.

Martin Lewis is your friend.....
 

http://www.moneysavingexpert.com/tra...p-travel-money

I have Nationwide credit and debit cards solely for use abroad. I find the most useful feature is being able to take cash from an ATM as I need it, rather than bulking up to lower the fixed fee.

Also - I have around 100GBP in Euro and Dollar travellers cheques for emergencies - once in the past five years I've been unable to get cash from the ATM when I landed. You may prefer to ensure you have 100GBP in cash to change on arrival in an emergency only.

I also have a Nationwide credit card solely for use abroad. Recent US$ -> UK£ exchange rates appearing on latest statements are:

Nationwide: $1.99 = £1.00
HSBC: $1.9459 = £1.00

And another thing......

Be very careful paying on plastic abroad that you're not paying in GBP at a rate offered by the accepting bank. This is becoming more and more common, and more and more underhand. You're supposed to be offered a choice, but more often than not, you're presented with a total already converted to GBP, and asked to sign/or PIN. There will be a disclaimer at the end saying "I was offered a choice and chose to pay in GBP". The rate will be pants and you'll probably end up paying a foreign fee anyway. Also seen when taking money out of ATMs - I spotted this in Zurich!

Refuse to sign and ask for the transaction to be conducted in the local currency.

Ditto previous advice.

I use a Nationwide debit card - in Asia mostly, but also the US and Canada. I get a great rate. Usually its within 0.1% (yep a tenth of 1%) of the Oanda rate. No charges unless the particular machine imposes one. Same with their credit card - but of course for purchases only. (For cash its the usual fee+interest regime.)

Most other cards (debit and credit) add between 2.75% and 3% for foreign transactions (in addition to any other regime if its a credit card and you're drawing cash). In the past the exchange rate was just loaded by 2.75%, more recently its been shown as a separate fee.

I've never been charged the "notorious GBP5" fixed amount mentioned above - so have found other cards are fine for small amounts.

I've met many a very wealthy British traveller who carries all manner of posh cards - but actually uses Nationwide. I stopped using Amex platinum except for priority pass and insurance because their 2.75% loading outweighed any advantages of miles etc. (YMMV).

Bureau de Change in the UK seem to me to be the most expensive way of getting USD. Even if you have to pay 2.75% to use your debit card overseas, its still going to be better than most bureaux de change. Having said that, some years ago I struck a good deal with a guy in Bayswater, London. They get USD all the time so were pleased to offload a few rather than have to sell them to a bank for GBP.

Incidentally, Nationwide is not the only free-to-use overseas card. I think the Post Office credit card is also free - though that's a credit card. I don't know if there are any other debit cards.

if you have a UK account with Barclays, then US $ withdrawals at Bank of America ATMs will be without surcharge:
http://bankofamerica.via.infonow.net...tLoadAction.do
(see upper right corner)

and vice versa. Also includes several other countries that have reciprocal no-fee benefits.

I just use ATMs when I arrive at another country. Major airports will give the same deal as you'd get on the street.

I do try to take a bit more money than I need and I'll either put it away for a future trip or, if I know I won't be going back, I'll spend it at the airport or on the last day in places where I'd normally use a credit card.

Now, I would like to know who gives the best exchange rate and minimal fees in terms of US based credit cards.

Perhaps try to find a counterparty on FT who will do the transaction at the interbank rate.

Strongly suggest checking out this site.

http://www.moneysavingexpert.com/tra...vel-money#hell

It should answer all questions!

Hello - post 5! Did you read the thread before posting?

There's a huge thread in MilesBuzz about this, but the info has been consolidated in the Travel Wiki:
http://flyerguide.com/wiki/index.php...reign_Exchange

Thanks for all the advice. I looked at www.moneysavingexpert.com as advised by MAN Pax (I recommend all who use their debit cards to get cash abroad to check if their card features in the 'cards from hell spot'). There is a currency exchange calculator on the site which tells you who in the UK has the best deal, I went up to Victoria Street (SW1) this morning and exchanged £450 for $886 at Thomas Exchange Global. I will take the other £50 in cash as backup.