I have an amex card and I can get a conversion rate of $1.31 and the current best rate for conversion based on bank rate is 1.23. Should I convert here in the US or would I get a better rate in europe. Also, with my debit card I have to pay a 3% currency conversion fee.
Thanks
First, verify that the rate of $1.31 is cash in your hand with no other fees or handling costs. Often a place will have a good rate, but them tack on a flat rate fee for processing. Conversly, many places offer "no fees" but bump the rate.
Assuming the $1.31 is all costs and current interbank rate is $1.23, you are paying about 6.5%. Given that, even your hefty 3% ATM fee is still a better deal, since the base trade will be at or near interbank rate. There again, verify that your bank does not have a Foriegn Transaction fee on top of the conversion fee. 3% is more like what you pay on Credit Card Transactions, 6.5% is close to what you would pay converting cash in Europe. If you have time, maybe look for a Credit Union with low fees, I know I routinely pay 1% or less over Interbank rate for ATM.
Set up a money market account with Capital One if you have time and use the ATM card that comes with it. They don't charge any fees at all. You even earn a little interest. It is without a doubt the best way to go.
The $1.31 is the rate plus a $5 flat fee. I am looking into a money market account as well.
I do not have enough time to open a money market account and receive the card before we leave.
At the atm's do you typically get the best exchange rate?
Yes, you get the best exchange rate at ATM's. Use the debit card that you have with your own home checking account, not your Amex.
I got 1000 dollar worth of euro from b of a no fees and a conversion of 1.31. The other expenses I will use my amex or capitol one card as there is no foreign transaction fee
Using the ATM is ALWAYS the best rate. Don't convert before you go, unless you just want some "comfort" of having a little cash (20-50E) when your plane lands.
