Beware of US bank's currency conversion rates

The best overall rate I have ever found is from Wells Fargo. Today their rate is $1.433/Euro. Oanda shows the Interbank rate to be $1.3765. That's only 4.1% over, today. They seem to average about 5%.

I have a question then..... Is it better to use your bank for cash before you go or should you wait until you get to your destination and then get the conversion there?

It's better to get cash from the ATM when you arrive. The conversion fee that way is much lower than any place you could exchange funds either here or at an exchange abroad.

Reid - That is always an interesting question. I always take over enough currency to get me buy for 2 days, then I'll start using the atm. I didn't mean to hijack this thread.

As you will find just about anyone on this forum will tell you: if you are looking for the best conversion rate, buying Euros in the U.S. is not it. Wait until you arrive in Europe and take Euros out of an ATM. Most banks will only charge you a 1% foreign transaction fee (some banks like Ally or Capital One have no fees, bigger banks like Wells Fargo have higher fees). 4-5% seems to be the minimum mark-up when you buy Euros in the U.S. So, unless you have to pay a large sum that exceeds your daily withdrawal maximum right out the gate, there is no need to take out a large sum of Euros before you depart. Some people might think it's a good idea to buy Euros in advance when the exchange rate drops, but considering the high markup, it's highly unlikely that this "gamble" will be worth it.

I would hate to get to Europe on the day the ATM stockers are on strike (I've heard of it happening in Rome) or on the day all the Internet lines are down and the ATMs don't work. I had that happen once, but it wasn't at an airport. Once I arrived at FRA with three ATM cards and the first two were rejected (on technicalities, but I didn't know why). I always bring back a few hundred Euro from my last trip to start the next trip, for piece of mind. I seems to me that if getting €200 from over here to start the trip only cost $13-14 it's cheap insurance, particularly when, depending on your ATM card, it might cost you $11 over there, anyway. If something did go wrong and you got to Europe and couldn't get money immediately, you'd really regret not getting some beforehand. Who of you would take all of your US$ out of your wallet before flying to NYC or LA, counting on getting dollars when you arrive there?

I am all for "planning for the worst and hoping for the best". What is the harm of paying $5 extra for the peace of mind to have 100 euro in your pocket when you get off of the plane? Peace of mind has value and $5 is a good deal.

Welcome to the "Get it in the US Bank Support Fund". I have gone to Europe every summer for the last 10 years and have always gotten my local currency where I land in Europe using an ATM DEBIT card tied to a CHECKING ACCOUNT here in the US. I have always had peace of mind and have never stressed out about the "possibility that the ATMs won't work".
I also have never had any trouble locating an ATM at any airport I have landed in all over Europe. Saving that $5 or $10, or more, gives me and extra pastry and coffee to enjoy.

Pat, I am sorry this came as a surprise to you but it is frequently posted all over this site, that local US banks charge between 5 and 10% for foreign currency exchange. Consider 5.8 as reasonable. Afterall it does involve some expenses so why should it be free? A little advance research would have alerted you to this possibility. The standard advice here is to use local ATMs and a debit card.

Charlie, those of us who have faced currency challenges due to not planning salute your luck. It's not a bank support group, it's more of a risk averse group when it comes to having money for a bed and food after an 8-12 hour flight. Pam PS There's a heck of a difference between getting 100 vs 1,000 Euros. ; )

For my trip to Europe beginning in Amsterdam, this past spring, I got some Euros in advance for payment for an apartment. The bank promised the bank rate and no fee for the service. WRONG! I paid a higher rate and then they charged an additional fee. Oh, and yes, they processed my request wrong and had to start all over. It was frustrating, but I wanted to have the Euros on arrival. Last year on my trip to Spain, both of my ATM cards got demagnetized and I had to rely on the one my husband had. I still don't know what happened this year, but both of my cards stopped working during the trip, and once again, my husband was able to use his card! So, now I am a little paranoid about ATM cards or machines!

I do not buy pounds or euros in the US. My backup is a few hundred dollars of US currency in the unlikely event that ATM's do not work for me and my credit card is refused. I have never had a card demagnitized, have never had an ATM refuse me, and have never had my credit card refused at any place that takes credit cards.

Thank you all for your input. I only posted this information to make other travelers aware of that their bank may provide them with incorrect information (I asked the conversion fee twice before making the request) and once the exchange is complete, you are stuck with unexpected charge. I would have waited until I arrived in Europe and used an ATM had I known the markup. My ATM withdrawals (from another bank) are converted at the interbank rate and cost only $1.75 per withdrawal and my CC bank converts charges with only a 1% conversion fee. While I would have gladly paid $5-10 for peace of mind, $58 strikes me as a bit excessive.

The disturbing thing, Pat, is not that you were charged over 5%, which is typical. But that they seem to have misled you on what their fee/rates were. I won't criticize a bank for covering their costs for the service and even making a small profit from it. After all, the Euro bills they give you were acquired days or weeks before so the rate could've changed since then. But when they tell you one thing and do another, that's just wrong.

Pat, the same thing happened when I purchased euros at my local bank (and I purchased a lot of them). I guess I didn't frame the question in bank language: I asked about conversion rates but neglected to ask what the total cost of the exchange transaction would be. Keep in mind if you decide to use ATMs in Europe to let your bank know where you are going, and perhaps raise your daily withdrawal limit for the specific time of your trip. It's not pretty to have a withdrawal declined because your withdrawal limit is too low to get you through a day or two of hotels, meals, travel and shopping.

Thank you all for sharing your currency conversion experiences. Just to be clear, I specifically asked whether the funds would convert at the interbank rate (was told yes they would) and asked the approximate rate of conversion (was given rates close to those posted on the internet conversion sites). I also asked whether any additional charges would be involved (was told there would be none). I first called the bank branch to get this information and then confirmed it with the assistant manager when handing over the funds. I believe the problem lies in the training of the bank personnel. I also attempted to call the customer service number (repeatedly) to speak directly with an international banking rep but the number was constantly busy another example of bank arrogance in meeting the needs of their customers. I have already informed my primary banks (a credit union and a local bank) that I will be making the trip. I did this last May when I began making apartment deposits and purchasing tour tickets. In spite of this advance planning, I am called by the Master Card fraud department each time a charge is posted. It is good to know that they are so diligent but as a result, I am now taking a cell phone in case it happens while we are in Europe.