Change money at home or at ATMs in Europe?

This question is asked nearly every week on the Helpline. You just didn't find the right threads. Rule of thumb: Use credit cards for major purchases and use a debit card to get cash from ATMs for everything else. To keep fees to a minimum ask your bank to raise your daily withdrawal limit so you can get as much cash as possible each time you visit an ATM. Be sure to notify your credit card providers and your bank when you will be in Europe so a computer doesn't freeze your account for suspected fraudulent activity. Read this helpful article by Rick Steves.

"I have read that it's more advisable for travellers to just bring a small amount of money from home and then use the ATMs in Europe to withdraw money, but I'm wondering why this is the case if the ATMs charge transaction fees? " This is the case because ATMs in Europe don't charge fees. The fees you might be charged are put there by YOUR bank. It's not like using an out-of-network ATM here, where it will charge you because you are not their customer. If your bank's charges are excessive (like charging a per-transaction fee on top of the currency conversion fee), find a different bank or credit union.

Arissa, also ask your bank if there is any way to avoid having them (i.e. your home bank) from charging you the service charge for using an ATM that isn't theirs. My bank was going to charge me an $8 service fee for every withdrawal. Because I asked about this, they moved me to a different banking plan that, as one of the features, waived all ATM transaction fees AND gave me a $1000 daily withdrawal limit, which was previously $400.

Hi everyone, Thank you for all of your answers. I'm new to both Europe and to this forum, so please forgive me for reposting on this subject. I have checked with my bank and they have offered me a $30/month plan where I am not charged any transaction fees and have unlimited withdrawals, up until a daily limit of $500. Since their transaction fees are $5 each, and we would be withdrawing money about once a week, I thought that it wouldn't really make much sense.

You do have to figure out what is the best plan for yourself. In Europe you will get close to (within 1% or less) of the interbank rate which the lowest rate possible. The problem with obtaining currency from US bank is they tend to say they do not charges fees, which they don't, but the exchange rate is inflated by 5 to 10% over the interbank rate - that is called burying your fee - now you see it, now you don't. Now many of us in the US have access to credit unions or other financial institutions that charge nothing or at most maybe 1% over the interbank rate at the ATM in Europe. Even if you could exchange at a favorite rate in Canada prior to leave you would have to carry a lot of cash with you at all times. We generally hit the ATM every two or three days.

The exchange rate for an ATM is the interbank rate. Your bank may charge a 1-3% transaction fee and a flat out-of-network ATM fee too. But that is still less fee than about the typical 5% fee on cash exchanges at the bank. Some banks or checking accounts have no fees or better fees than others. And the fewer times you withdraw from the ATM, the fewer out-of-network fees you pay. IF your banking friend can get you the interbank exchange rate THEN it might make sense to buy Euros before you go. But I'd be wary because others have posted that their bank told them no fees and a good rate and still gave them a bad rate when they made the exchange. For Swiss Francs, just use the ATM. Commercial exchanges are for-profit and will charge you even higher fees or a worse rate than your bank.

Thanks Frank and Douglas! Your posts were extremely helpful and had the information/advice I was hoping for. We have decided that we will still be changing our money at home before our trip, but will not bring as much as we previously planned and will rely on ATMs for the rest. Thank you everyone for your very quick replies - the posters on this forum seem like such a gem!

The usual rules of currency exchange do no apply to Vancouver residents. Canadian credit cards and debit cards are not the bargain they are in the US and Vancouver also has at least one currency exchange that marks up euros and pounds by about 1%, beating the rates available with Canadian plastic. Your banker friend may also be a great source of foreign currency, as 1.559 CAD = 1 GBP is now less than the interbank rate of 1.5621 CAD = 1 GBP. Shopping around the currency exchange bureaus in Vancouver will allow you to save over credit cards and debit cards. Whether you want to carry a huge wad of foreign cash is another matter.

Many here have an additional internet-only bank account used specifically for travel. For example, CapitalOne Hi Yield Money Market, pays interest, charges no fees for ATM use, withdrawals are at interbank exchange rate. Allows $600/day (US) in withdrawals. You feed it online (unless they happen to have a branch near you) from any other account of yours that you choose. Only issue is you need to have it open 30 days for full access. While I am at it, CapOne also has a credit card with 1% cash back (2% on gas and groceries) that does NOT charge any fee for international use. Most of the other credit cards charge a 3% international fee. Charges are converted at the exchange rate de jour.
Security is good, too - you must let the bank know what countries you will be in when.

Arissa, consider changing banks. I use my TD atm card, it gives me free foriegn withdrawels and the fee for that accoun tis 24.95 a month OR ,, which is what I do,, is keep a balance over 5,000 and pay no fee what so ever,, the Royal Bank has a smilar account.