Converting money at AAA office or in Italy

You go to your local credit union and open an account and get an ATM card. AAA is OK for towing your car to the garage, but please don't expect the Travel Agents to know much more than any travel novice.

AAA will give you a worse exchange rate, which outweighs most ATM fees. They know it's not easy for you to compare. Using ATMs to withdraw cash and using credit cards for larger expenses or hotels that accept them will give normally you the best total exchange rate. Some cards, such as Capital One and credit unions, have a reputation for lower charges. See also http://www.ricksteves.com/travel-tips/money.

The bank's ATM did not charge you a fee. Your own bank may charge you a fee for out-of-network ATM's plus the 3% foreign transaction fee. Typically the total fees (assuming you withdraw the maximum amount allowed by either your daily limit or the machine) is less than 5%. No exchange service will give you a better deal (they get you in either fees or poor exchange rate or both).

If you wish to nearly avoid fees, there are some credit unions and bank accounts that have no fees. Charles Schwab is often mentioned.

You might also consider how much your total fees might be. 5% fees on $2,000 worth of withdrawls is only $100. While that might seem a lot, it really isn't. For example, I choose to take a taxi to/from O'Hare each time I fly. Now I could save $40-50 just by using the L system. But it would take over an hour longer and isn't worth it to me. So is saving less than $100 worth the time and effort to open a new account? Will you even be getting as much as $2,000 in cash while you are there?

Italian banks don't charge a fee to use the ATM. This fee comes from your own bank. You'll get the best exchange rate by using ATMs in Italy while there. Check out different banks to see what their rates are and go with the best one. Sometimes credit unions will charge no fees so be sure to check those out as well.

You might also want to raise the daily limit you can withdraw. If you're taking out more money less often you won't have as many fees.

Donna

I stopped using AAA for foreign currency in 2008. If you buy or exchange money from/ with them, they give you the exchange rate that existed at the time they bought currency. If the rate is better now than it was when they bought money, too bad; they'll pass the worse rate along to you. Your best bet is to use ATMs and withdraw enough euros at a time that you can avoid paying the fee too often.

I am also interested in this post as I am traveling to Italy soon and have never been to Europe. So if I am understanding correctly, it seems the consensus is to have an ATM card from our local bank here in the states and just withdraw from ATM's over there (knowing there's about a 5% fee, or similar). I just want to make sure we have some cash on-hand to travel with... so is it ok to have zero Euros until we step off the plane? Please advise!

I like to have some euros on hand when I arrive in the European airport. It's just one less thing to worry about in that tired and jet lagged state. I would get 100-200 euro from AAA or from a bank here in the states, unless I had some left from the last trip.

jenmbc16-I would also recommend that you have at least two debit cards from different banks, in case one does not work in a particular machine the other one may. Let your banks know when and where you'll be traveling, and re-confirm with them a week before you leave that they have that info. Try to use bank-owned ATM's, preferably when the bank is open so if it eats your card you can go in and get it back. Good idea to exchange a small amount for euros before you go.

Get a Charles Schwab checking account. They are great for traveling with no fees and any atm fees you even incur in the US, they reimburse you for those. That's the bank I use for my travels