euro based credit card and euro bank accounts/exchange rates

I've used the CapitalOne credit card, which doesn't charge any comission on foreign currency transactions. The only downside is that every month or so you have to phone them and get them to unblock your card (they assume your card has been stolen if it is used a lot overseas).

Everbank allows you to open accounts in Euros and charges 1% conversion.

Ironically, using my Everbank ATM card in Europe can actually result in less comissions than my european card (some european banks will charge up to 20 euro transaction fees if you dare to use one of their competitors cards).

This was just discussed recently. For most European banks, you need to provide a European address. And even if you did open an account with a European bank, if you make a dollar-to-euro transfer, they'll still charge a premium over the bank-to-bank rate. Still, this rate is usually lower than direct bank or bureau de change purchase.

There are a small number of US banks that accept euro accounts, but once again, they'll still hit you with a fee if you make a currency conversion.

Finally, some banks that exclusively serve government and military employees charge a nearly neglible fee.

Natalie, since you are not a big bank, the best exchange rate you can get is the 1% mark-up you will be charged on good no-fee credit and ATM cards.

You'd be charged at least that much to convert your money to euros and deposit it overseas, even supposed you wanted to go through the hassle.

If you are worried about the exchange rate going south in the next year or so, that is another issue. You can invest in many euro-denominated financial instruments, including cash. But that is currency speculation and could go either way.

I think your efforts would be better spent locating a bank and credit card that don't tack on extra fees, if you haven't got that already.

Typically, if you use a credit card, you sign a receipt, in Euros, showing the agreed upon rate, which is easy, because if you agree on 100 euro a night, thats what you pay, no other taxes or fees (they are already in there) like you get in the US. Only your credit card company charges fees for the currency conversion and service charge, not the hotel...so shop around and find the best card, usually those with "no Fees", the conversion rate is still about 1%.
All of this said, Be warned, there at least was a trend for hotels and shops to bill you in US Dollars, as a "favor" to you. This is where the Hotel might get you with an unfavorable exchange rate, and your credit card company may still charge you an International Transaction fee and a conversion fee. Bottom line. always complete the transaction in local currency.
You could pay cash (Obtained from an ATM, getting a slightly better rate maybe) and in fact may be able to negotiate a better Hotel rate for paying in cash. That might push your daily limits of withdrawals, depends on your situation.

Thanks for all your input!

Contrary to Kristof's experience I have never had a problem with Capital One blocking my card overseas. I just inform them of my travel dates, and I use the card without incident. It's the only credit card I use abroad anymore (though I have others that I could use) because of their no-fee policy.