Best way for me to get Euros

Lee, check with your bank and ask what the fees will be when you use the ATMs in Europe. My bank did not charge me any fees at all (surprisingly) and gave me a very reasonable exchange rate. As well, I always used a major bank ATM and I did not get charged a service fee from any of the European ATMs.

By the way, the difference in the exchange rate between what the internet says and what your bank is offering is that the internet rate is the open currency market rate of exchange, but that is based on units of either $100,000 or $1,000,000 at a time. Since you do not have that much money to exchange, your bank charges you a bit of a surcharge for forcing them to buy Euros at the full unit of exchange, and then breaking it down and giving you only a part of it.

My recommendation is to go to your bank and get enough Euros for one or two days in Europe, then let your card do the rest for you. Again, just check with your bank to see what rate they charge.

"because what if the ATM is out of service". Any airport you are likely to fly into from the US will have multiple ATMs.

But anyhow, there is often a difference between a "bank fee" that you are charged for purchasing euros in the US and the "foreign transaction conversion fee" that banks charge for withdrawls in a foreign country. And usually, the foreign transaction fee is much lower, to the tune of 0.5-3%. A select few banks even give their customers the interbank exchange rate. Given that your bank is quoting you $1.32 when the official rate is $1.26, I would say that their claim of "no fees" involves a bit of verbal gymnastics. By my math, they're charging nearly a 5% premium (OK, 4.8% to be exact). Ask them how much they would charge for an ATM withdrawl in Europe, I suspect it will be less than 5%.

You will still be better off, probably, to get Euro from the ATM over there. However, there are good reasons to have some Euro when you arrive. If your bank quoted you $1.32, with no fees, when the official rate is $1.26, that is still pretty good.

I don't know where you live, but if you are near a main branch of Wells Fargo, they sell Euro for an average of 5% over the Interbank rate. You can also get them online from WF for the same exchange rate and $8 shipping.

Even though few of us have the money to get the Interbank rate, my experience has consistently been that the base exchange rate that I get through an ATM is so very close to the interbank rate that the difference may be explained by time of day and variation in rate. What drives it up, is the fees your bank charges. For a concrete example; here are real numbers from a recent trip to Mexico. I withdrew 4000 Pesos, based on interbank rates for the day, that should have cost me as little as $281.48, or as much as $289.76 (the Dollar/Peso rate was volitale then)(Date was 1/15/09) I was charged $283.52, by all accounts, the interbank rate. However, my Credit Union now tacks on fees (or maybe just passes them on), based on withdrawal amount, so I also had a charge of $2.27 for an International Service Fee (ISA) and $.57 for a Currency Conversion Fee (CCA. So, even with fees, foreign currency through an ATM only costs me about 1% over Interbank rate, which has been pretty consistent over the years. The only real strategy for an ATM, is if your bank charges a flat use fee (say $2.00 every transaction) then it is best to withdraw as much as possible, less frequently, than making multiple transactions for say $50. Still, it does not hurt to get a hundred Euro to have in your pocket. Your peace of mind is worth a buck or four.

We now always return from Europe with a supply of euros, because we plan to go back the next year. However, for newbies, "what if the atms are down" is not a trivial question. Happened to us at my least favorite airport in the world, CDG, a few years ago. All the atms in Terminal 2 were for the same bank and were down. We didn't want to go through the hassle of riding a navette to another terminal because we were in transit and on a tight time frame. We knew we would need transport to town when we reached our destination, Genoa, so we took some $'s to the AMEX booth, where we got an awful rate. Ironically, in the tiny Genoa airport there were atms for five different banks, all working. Bottom line, my advice is to get 50-100 euros before departure and don't obsess over the rate. 99 times out of 100 there won't be a problem in the airport, once in a while there is. Consider the fees the price for peace of mind.

Are you a member of AAA (the auto club)? They sell small packages of Euros for an OK price. Just enough to have some cash and get by.

I found that the only banks in my town that I could get Euros from was either Bank of America or Wells Fargo, and I can't stand either bank.

AAA ... sell[s] small packages of Euros for an OK price.

... Bank of America or Wells Fargo ... I can't stand either bank.

Several years ago, AAA was reselling Euro from Wells Fargo at 5% mark up over the Interbank rate. Since then, I think, they have switched to Travelex for at least 50% more. I don't call that an "OK" rate.

I'm not in love with B or A or Wells Fargo, but if they have the best rate (WF does), I'll use them.

I purchased pounds last year from Wells Fargo and was not a charged like AAA charges. Why pay $8.50 just to buy foreign currency.
I don't think most banks in Europe charges a fee to withdraw money from the ATM's. We were only charged a % for conversion from our bank in the USA.
If your bank does not charge a fee, purchase enough to get you from the airport to your destination if you won't have time to withdraw money when you arrive.

Hi Lee,
My wife and were over in Europe in Sept. and Oct. and had no problem finding ATMs and getting cash! We opened a Schwab account and had no ATM fees or conversion fees. It worked perfectly and we found ATM's accessible everywhere we went. Just make sure you have a four digit ATM code. We had a five digit but had to change it to a four digit before we left. It might help to have a card from another bank just as a back-up. We did, but never used it. A $1.32 isn't a bad rate if you are only talking a hundred dollars or two, so buy some Euro's here, but don't sweat it. We didn't buy any until we got to a gas station in Munich! Have fun... and PS where are you going? Don't hide these important details from us..us RS people need to know all the details. Monte

Thanks to all you nice folks for giving me advice.

I'm not a "newbie" traveler, but don't like to arrive empty handed. One time I exchanged money at the AMEX counter at CDG and definitely got ripped off! I was mad at myself, but I was in a hurry to catch the Roissy bus and had absolutely no euros on me.

This time I have about 25 euros already (left from the last trip), but would like to have a few more. I think I will get about 100 more from my bank then the rest from ATM's when in Europe. I'll also ask the bank what rate and/or fees they'll charge me from the European ATM's.

Monte: Sorry I neglected to mention my itinerary. We're flying to and from Frankfurt; will take trains all around because I won a free Eurail Flexipass for 2 people for 15 days in 2 months!! But the reservations have certainly added up! Anyway, we leave Frankfurt and go to Paris. Then overnight train to Rome; then to Florence; on to Venice. Overnight train to Vienna and finally an overnighter back to Frankfurt. Leaving in 2 weeks. I'm getting excited and trying to tie up loose ends. Got all the museum reservations done today.

Lee, I'd just get a couple hundred Euros from the bank to start with and then plan on ATMs. My bank gives a decent rate, but the ATM rate usually is better, even taking into account the fee.

I also like to arrive with some foreign currency. I had never had any problem with ATMs until my last trip ... arrived in Verona, Italy and the first 3 ATMs I tried failed. On my way to the internet cafe to look up the bank's phone number, I tried a 4th ATM and was successful; I had no further problems for the rest of the trip. I alway think it is a good idea to bring some cash just in case.

As someone has said, get some euros at AAA. They used to use Travelex for their money and AAA Travel card, but do not now. A previous poster had it reversed. Travelex charges exhorbitant rates, but AAA ditched them. You can aways go on oanda.com and see the real rate ,call AAA and see what they are offering. ,and then go buy some euros. Also, if you do need an ATM at an airport, do not use one that says Travelex. Higher fees here in the US are fees, so make sure you know the real rate- oanda.com. I check daily. Ask your bank what their rate is- some will not tell you, but want to take the money from your checking . Never do that unless you are sure what the total transaction will be.

I just went to AAA in a Denver suburb. They wanted $1.64/EUR. Seems last summer, when the Euro was $1.50 something, they stocked up. Now they have a lot left at $1.64 per Euro!

In answer to an earlier comment, AAA used to use Wells Fargo. Some time ago, seems like around a year, but time passes quickly, they went to Travelex. Now they are back to Well Fargo.

So, it pays to check around. Today I would do much better at WF, but when AAA runs out of expensive €, and buys more at a lower rate, and if the international rate then goes up, and they still have cheap Euro, then it might really pay to go to AAA.

In addition to the Euro "tip packs" that AAA sells at branch offices they also offer currency online at aaa.com.

Today's online rate is $1.33 and free overnight delivery.

I agreee with laura...get enough at home to get you thru the first day or two....cab, train, first days meals, drinks etc.

After that, I always take out larger amounts from the ATM (my bank charges per transaction...) then as I get a little light in the wallet...get another larger amount.

One warning tho'...at Xmas we were in Paris, I planned on paying my weeks hotel bill in cash. Day before we left, went to the ATM...but it would only give me a limited amount...more than enough to live on...but substantially less than the hotel bill.

Make sure you know (in Euros) what your daily withdrawal is.

Bill, is that AAA rate ($1.33/€ and free shipping) available to everyone, or just for AAA members?

At 1.33 that is about a 6% premium.

The $1.33 is (only) for AAA members.

Correct on the 6% fee, it's still far less than my bank charges here before depature. This year I'll take a few with me from AAA.

Actually, the 6% difference is between today's "spot" rate of $1.27. Unfortunately, that rate can only be obtained on large cash interbank transactions, not by consumers.

If anyone knows how to narrow that gap, we'd all love to hear it!

Call Wells Fargo for their price for euros. I purchased pounds lasts year with no fee. I think I paid the going rate but then in June last year the pound was up to 2.07 to the dollar. Ouch!! But, my husband and I had a great time watching our budget..
I think AAA charges too much for the purchasing of euros and they also "charge what the current rate is" but I think I was overcharged a couple years ago for euros.

If AAA now uses Wells Fargo, the exchange rate, on average, is 5% over Interbank rate.

But that is not the point, I can go to a main branch of WF and get that rate. AAA might save me the trip to a WF main branch, but I have to pay an annual membership fee. What is that, $100 a year? If you add that to the cost of Euro, it gets pretty high. My car insurance covers roadside assistance. I have not had to pay anything that AAA would have covered over my insurance in over 30 years.

My parents proudly held a So. Cal. Auto Club card that said "member for over 40 years", but I happily dropped my membership in the early 70s, when it obviously was not cost effective, and I have never regretted it.

The AAA online ordering opens a special Travelex Currency Services, Inc. screen that gives the discounted rate. If you go directly to Travelex.com the rate is a lot higher.

In South Florida we have AAA but we do not have Wells Fargo Banks.

Today's rate is $1.34 on the AAA members screen.

give xe.com/cash a try