Last year in Venice, we went to a Post Office and exchanged US currency for Euros at the current trade rate with NO commission or service fees. This year, we will be in Berlin and Munich. Do any of you know a location where we can exchange money in this fashion?
Posted by
Pensacola
9110 posts
If you look at the exchange rate, I'd bet it wasn't so hot.
Posted by
Lakewood, Colorado
19237 posts
What was the exchange rate ($/Euro) you got, and what was the exact date? Oanda.com has the historic Interbank rates.
And "No". I know of no such place in Germany. If you have certain accounts with certain banks (e.g.., a PMA account with Wells Fargo in Colorado), you get a certain number of ATM withdrawals per month at the Interbank rate. Small banks, without foreign currency ops, will give you cash at an ATM for 1% over the Interbank rate. Major banks charge you 3% over.
Posted by
Bloomington, IL, USA
9369 posts
And some small credit unions (like the two I use) charge nothing additional - and you still get the going exchange rate. They absorb the fees as a customer service.
Posted by
Eastern Iowa, USA
7901 posts
Robin;
Just to expand on the conversation; there is always some "hit" to changing currency. Firms that do this need to make a cut somehow, so they do one or both of two things.
First, they may charge a flat or percentage fee. Basically tell you for, $5 for example, they will change $ into Euro. A minimal fee, but at $100 in currency, thats 5%.
Secondly, they may offer a rate well above "Interbank" or the cheapest practical exchange rate. For example, they may offer to give you .75 euro for your Dollar, this is I suppose OK, but the current Interbank is closer to .82, sounds like only a few cents, but the difference adds up over hundreds of Dollars.
Basically, at any exchange counter, expect to pay about 5% or more, whether it cost you in Fees or the actual rate. As was mentioned, with a decent ATM account, you can get cash for usually about 1% over Interbank.
Posted by
OP
Boynton Beach
2 posts
Thank you so much for your thoughts and suggestions. We are looking into another venue for our travel debit acct. based on your advice (Our bank charges too high a premium for foreign ATMs)Thanx again!!
Posted by
Tresana, Highlands Ranch, CO, USA
23557 posts
I would be willing to bet that the rate you get from your bank including charges is better than the rate you received from the post office. There is no such thing as a current trade rate. There is the interbank rate which sets the floor for the exchange rate. But after that anyone is free to add any amount to that rate and call it whatever they went. There is absolutely no control over exchange rates charged by money exchanges.
We were recently in the Florida Mall (?) in Orlando which has a money exchange booth in the food court. They advertised no commission, no fees, best exchange rate. The iphone gave me the current exchange rate. They were selling Euro at 8% over market and buying Euro at 6% under market. A terrific business with a 14% profit margin.
There are lots of options for finding debit and credits that do not charge the currency conversion fee or a very low fee. Go find one.