currency

Most posters prefer ATM withdrawals in Europe, probably to avoid carrying around a big pile of cash. Something to consider.

Even with the 3% transaction fee, the rate that you get from a European ATM is usually still better than the rate you get through any other method of cash exchange. Other banks and credit unions may apply only a 1 or 2% fee, but you may not necessarily want to open a new account. The ATM that you are using may or may not add an extra fee - usually not for major banks. See also http://www.ricksteves.com/travel-tips/money.

Here is an excerpt from my recent Chase debit statement:
NON-CHASE ATM WITHDRAW 10/14 Euro 250.00 X 1.276160 (EXCHG RTE) + 9.57 (EXCHG RTE ADJ) = $328.61.

I also have chase.
The 3% transaction fee is less than the exorbitant commission charged by anyone else if you exchange in the US (Amex or Thomas Cook). The ATM fee from Chase is $5 per transaction ( so try to make few large withdrawals). There is no fee charged by the Italian bank in my experience. There are also banks that charge less than Chase, but you might need to open a new account with them.

The cheapest and most convenient way to obtain local currency is a debit card at a bank owned ATM even if you have to pay a 3% conversion fee. Of course, it will be cheaper if you have a debit card that doesn't charge a currency conversion fee but any other system will be more expensive. Most currency sellers in the US including your bank will charge between 5 and 12% for currency. So 3% is cheap.

Having said all that, some people want to land with some Euros (or pounds, or krona, etc.) in their pocket for immediate use at the airport or when hopping into a cab. If your bank has foreign money available, you might want just a little, although you'll likely find an ATM at the airport and can just get your cash then. Just don't use an airport Exchange Bureau desk or ATM, as you'll get a poor exchange rate from them -- use an ATM from a legitimate bank. And, depending on how long it's been since you were in Europe, all this ATM business with whatever nominal fees are charged is a way better deal and much more convenient than when you had to locate a place to cash your traveller's checks :-)

We just returned from Italy & I only took 100 Euros that I purchased from my bank (Wells Fargo) without any added fees.

I used bank ATM's while in Italy & Wells Fargo only charged me $5 fee per transaction.

Make sure you call your bank & request an increase in the amount you can withdraw because many of us have a $300 limit per day (equivalent to around 230 Euros).

I increased my daily limit to $750 and I had no problem withdrawing €500 at a time.

Important: Don't forget to notify your bank(s) regarding dates of travel, so they won't block your card(s).

Safe travels!

Also, when you get foreign currency at home there IS a charge in addition to the inter-bank exchange rate. If you find out how much it would cost to get €xxx from your bank you could compare how much it would cost to take that much out of ATM's in several withdrawals. Most likely the difference will be small -- consider it the "insurance" cost of not carrying all your cash at once (and potentially losing it all)

Oh my goodness... Thank you so much everyone!! This has been extremely helpful!!!

If you have Bank of America DC. You may withdraw from their associate banks ATM in Europe without any fee.

There is generally no fee charged by ATMs in Europe - any fees charged are from your own bank. Credit unions often charge much lower fees. Mine charges absolutely nothing. If your bank charges large fees, make larger, but fewer, withdrawals.

This past May, we opened a checking account with Charles Schwab and our banking card does not have any ATM fees anywhere. In fact, if we are hit with a bank fee from a foreign bank Schwab will refund the money at the end of the month. There is no minimum balance or any other restrictions. I did need to open a brokerage account with nothing deposited and then opened the checking account. It cost nothing and with no bank fees after using a foreign ATM makes this a beneficial traveling tool.

Buon viaggio,

As the others have mentioned, the easiest and usually least expensive way to get local currency is to use ATM's in each country. While each bank may charge fees for use of the cards in other countries, the exchange rate is usually charged at the "interbank rate" which is usually the most favourable. Note that ATM's have different names in various countries. For example, in Italy, "Bancomat" is the term, in Germany you'll probably find them labelled as "Geldautomaten", while in the U.K. "Cashpoint" seems to be common.

There's often a debate here on the Forum regarding whether or not to travel with cash. My preference is to have 50-100 in the local currency to cover incidentals like meals, taxi fares or whatever until I get settled in my first location and can find an ATM. There are always ATM's at airports, but I'm usually in a hurry to get out of there so prefer not to stop. I usually have money left over from previous trips, so that's what I use to cover travel expenses on the next trip.

I would highly recommend packing along a "backup" ATM card, in case of a problem with the primary card (I've had that happen). Also, be sure to notify each of your banks and credit card firms that you'll be travelling, so they don't "freeze" your cards when they detect transaction activity in Europe. I don't have any suggestions to offer on the "best" ATM card to get, as the products here are different than those in the U.S.

Excellent advice regarding a Charles Schwab account. We opened one for our very first trip to Italy in 2010 and have been so pleased with their service and lack of fees that it is now our primary account. It only take a couple of weeks (at most!) to get your card. Capital One is also an excellent credit card to use as they have no International Transaction Fees.

First, here is Rick's page of excellent money tips. Read all the links, and you'll be an expert: http://www.ricksteves.com/travel-tips/money

Second, I don't know where you live, but in addition to Charles Schwab, TD Bank and various credit unions often have low or no fees for foreign ATM use. You can consider opening a new account just for travel, and having your Chase ATM card as backup (that's what I do).

Third, the markup on exchanging cash is so high that using your Chase ATM card, even with their fees, is usually a better deal - particularly if you take out a lot at at time, so the $5 per withdrawal gets you more euros.

Fourth, if you do want to arrive with some euros, Chase (at least in New York) sells them at all their branches, so it's an easy way to get them before you go. But don't get more than €50-100, unless you have a special situation.

I'm a Chase customer too. You can order some currency at your local branch for no charge. You can specify currency like all 50's or get a "small mix" which is 20's 10's and 5's. We used out Chase card and the ATM fees were pretty small. In 2 weeks we hit the ATM 3 times - but we were on a RS tour so a lot was paid for in advance.

Added Chase bonus - you can choose Italian for your language on the ATM and practice before you go!

I would advise getting a mix of small euro notes, your first ground expenses (commuter train or taxi, coffee or water) will be small and breaking a €50 for a €1 coffee or €20 cab ride early in the morning can make a dent in the vendor's change supply.

don't forget that on your last day as you prepare to pay your B&B bill or hotel bill ask the owner/manager if you can pay with your remaining cash and your credit card in combination. My B&B allowed me to pay 40 pounds cash toward my bill thus I avoided bringing bck cash I wont be using or would have had to pay to exchange back to dollars! my chase visa sapphire card allowed me to avoid foreign transaction fees as well.

Wow, That's a great idea, jarradd! We usually keep extra euros, knowing we'll need them again on our next trip, but we've ended up with Swiss francs and British pounds that we've carried around for years. Good tip.

.......I'm a Chase customer too. You can order some currency at your local branch for no charge.....

Be very careful of no charge claims. I will guarantee you that Chase buried a 8 to 10% fee in the exchange rate. The cheapest and most convenient way to obtain local currency is a debit card at a bank owned ATM in country.