Currency Exchange

You could wait until you arrive at the airport, find an ATM to get money. You will get the best exchange by using an ATM. When using ATM it has to be connected to a checking account only. ATM's in the UK doesn't give you a choice.

buying a small amount, say 100 pounds, at your bank is probably more convenient, and although more costly, the actual dollar difference is negligable compared with the total cost of your trip. I always feel more comfortable having some of the local currency in my pocket before i leave USA. I find the convenience and comfort worth the small extra cost

Like Brian I always like to have some Pounds/Euros etc. in my pocket when I travel. That said I have never had trouble getting Pounds/Euros etc. out of an ATM at the airport. You must have a 4 (four) digit pin connected to your checking account. Credit cards sometimes also require a PIN. Request 5 weeks prior to departure if you can and test at your local bank. Be SURE to advise your bank of your travel plans. If this is your first trip to the UK get some Pounds from your bank. Less stressing about "what if?"

I agree. I just buy about 100 pounds at my departure airport in the U.S. Sure, I'd save some pennies if I bought them in the UK. But, the last thing I want to do at Heathrow is look for an ATM. I just want to get out of the airport and to my hotel. I grab more cash from an ATM the next morning.

I wish those who choose to purchase European currency in the US prior to going to Europe would include the exchange rate they received plus any fees they paid so that the rest of us can see the difference of buying here or there.

This does seem to be splitting hairs- if you are only getting about $150 worth of foreign currency ("some pounds") because you find it more comfortable having it in your pocket when you arrive, whether you pay 3% or 5% or 0% the cost is small, and I find it a small cost for the convenience. If you are buying a substantial amount that would be different

When I have gotten money from my bank,they are a small bank with only a few branches, the exchange rate was what ever the official rate was for that day and there was no fee. The only other bank I have tried was Bank of America and since I did not have a bank account with them they would not even consider getting money for me even though I had a stock account with them worth several thousand times the amount of Euro's I wanted. If you belong to a credit union check with them, I know many of them have very small or no fees at all. When you are only getting a small amount ,you do not want to carry a large amount, the fees should not amount to very much and to me it is worth it to have the money in my pocket when I land and not have to run down an ATM.
Compared to the overall cost of your trip the fees and exchange rate on money to get you to the UK will amount to practically nothing.

I will put a hundred dollars on the table that this statement is false --- ......official rate was for that day and there was no fee. ...... Not that the poster knew it was false but that the bank mislead her to believe that it was true. I will bet that hundred dollars that the "official rate" was actually marked up by at least 5 to 10%. The best reported bank rate is Wells Fargo at 5% markup which is reasonable. When you go to buy currency at your local bank check the interbank rate via the internet for you know what that rate is that day. The official rate is whatever the bank says it is. Don't be mislead.

I wish I had someway to prove this but you will just have to take my word for it. I looked up the current rate on the day I got the money and it was within 00.02 of the figure quoted on the internet. I told you this was a small bank,not Wells Fargo, and I had a rather substantial amount deposited with them. I realize that if you go waltzing into your local bank and get a couple hundred pounds there will be a charge. That is why I recommended trying a credit union.

The issue of ATM and exchanging a small amount prior to departure is well covered so I'll address the last part of the OP's question. Under no circumstances should you plan to exchange US dollars for pounds in the UK. You will get an awful rate plus fees. Use your ATM once you arrive in the UK. The only US dollars you should carry with you is pocket money for your return (cab fare or a snack when you arrive).

Mike, Regarding the second part of your question, you can get the "best exchange rate" in the U.K. by withdrawing cash with your ATM card. Exchange will be charged at the "Interbank rate", which is usually the most favourable. However, your service fees may vary depending on the rates charged by your financial institution. Regarding getting the best rate in the U.S., you might enquire at Banks in your area. The exchange rates will differ from day-to-day, so there's no way to predict where they'll be on any particular day. Of course the Bank will always get their fees, whether you're changing to Euro's or back to U.S. dollars. When obtaining foreign currency for travel, I tend to take the attitude that "it is what it is", so if i need the currency I just pay whatever the "going rate" is. Happy travels!

The general rule to avoid exchange bureaus does not hold true in London where a few places offer better rates than most US ATM cards. http://www.bestforeignexchange.com/index.php currently quotes a markup of 1.2% over Oanda's current interbank rate, $1.6165/£ vs $1.5972/£. http://www.thomasexchangeglobal.co.uk/ is second best with a markup of under 2%. This directly contradicts Douglas's advice. Decide for yourself whether it is worth a trip to these exchange bureaus and beware of Travelex machines at Heathrow that disguise themselves as ATM's. Note also that Travelex in US airports marks up currency by over 13%, with $9.95 fee hitting small purchasers particularly hard.

In the Uk, I use my Bank of America debit card at Barclay's ATMs. The exchange rate matches the rate listed in newspapers or on Yahoo when using a B/A ATM card. I found a currency exchange office across the street from Paddington station in London. I had calculated the desired exchange rate and that is what I got. It worked for exchanging euros for GBPounds. Just do your math first and be willing to check a couple of exchange offices. At the time I exchanged the euros, there was another shop nearby that had a complicated board showing multiple rates. I went to the next shop and said "I have 400 euros; how many GBPs will you give me?" They quoted a number that was agreeable, so I made the exchange.

I am heading to Scotland. My bank suggested I have some currency in hand before I land. They showed me how to do it through their website. They said, if I ordered it from the bank, they would complete the transaction the same way as doing it online. I went home and wanted to see what the cost was. The exchange rate was $1 to .56 GBP. It showed that it the rate was as of 11:01 am eastern, the time I started the order. I pulled up the exchange rate on 5 different website, the rate was actually .616. Plus I had to pay delivery charge, because it was shipped to your home, even if I did it through the bank it is shipped to your home. Tread carefully and shop around. I'll take me change and get money at the airport. So the cost is in delivery and the lower exchange rate.

I haven't been to the UK for a bit-but the answer is Yes. And, Capital One has a debit card,tied to a checking acct that does not charge fees and will reimburse foreign transaction fees.