cash in London

The cheapest way to get pounds will (probably) be to use your debit card at an ATM in the UK. This is by far the most convenient too.

You can bring US dollar cash to change but you'll almost certainly pay a bit more on the exchange rate plus you'll have the bother of tracking down a bureau de change and you'll have to worry about carrying enough cash for your entire trip.

You can pay by credit/debit card at most places too, exceptions being the same sort of places that don't take cards in the states - very small shops, street stalls etc.

It's been my experience that the best exchange rate (and lowest or sometimes no extra fee/charges at all), i.e., value for money, is to use my VISA debit/ATM card to get cash from an ATM in London. Mine is issued by a credit union and I've been careful to use ATMs that are at banks or National Rail stations in London - watch out for ATMs in odd locations etc.

And I also like using my VISA credit or debit card for purchases where possible in the UK. The most mine charge me is a one percent fee on the transaction, and the exchange rate is very good. Always check with your credit card issuer (in my case it's two different credit unions) to find out what kinds of fees, if any, you will be charged.

I prefer to land in a foreign country with a little of the local currency in hand; probably not necessary but just a habit. I have in the past changed US cash for foreign currency at a Travelex money exchange facility located in the lobby of a local bank. Check travelex.com for locations.

Another option for pre-trip cash, which may be a better value, is now offered by AAA offices to AAA members: a "starter pack" of US$100 in foreign currency, I think it's your choice of Euros or GBP. If you're an AAA member, check it out.

The absolute worst possible choice. in my opinion, would be to take US cash to Britain and exchange it there. You are likely to get hit with a fee that will wipe out any advantage of a favorable posted 'exchange rate.' That would be my absolute last choice. My next to last choice would be currency exchange at a US airport. You pay a price for that convenience.

Happy trails!

General rule of thumb: Use credit cards for major purchases and get cash from ATMs for everything else. Your debit card must be linked to a checking account and have a four-digit PIN. Be sure to tell your card providers when you will be in Europe. If you don't, a computer is likely to freeze your card for what it suspects might be fraudulent use.

Lyn, Listen to Tim. Take only enuf American $$ for your needs at your US airports both coming and going.

The claim is the best rates are with CC's. We also get local currency at Wells Fargo before we go. Rates are OK and a lot of places in the UK prefer cash.

Just remember that for debit card cash transactions there is a daily limit on how much money you can get -- usually low to protect you in case your card is stolen. I talk to my bank before I leave, and they increase that limit to more than what I think I would need in a day for the time I'll be gone. Cash machines are, in my opinion, the very best way to go. And when you are traveling in the euro countries you don't have to worry about extra cash until the end.

If I don't want to bring any foreign money back with me (like leaving Switzerland which has its own currency, for example), I buy everything I'm going to need, then I pay the hotel bill with as much cash as I have left -- even the coins -- and charge the rest on my credit card. I was happy last summer. We left Switzerland for Germany with only euros in our pocket. Just thought I'd throw that in.
Oh, by the way, be sure your pin number is all numbers -- no letters -- as there are numbers only on the cash machines.

ATMs work great (though we do take some US $$ in case there's a glitch one day). However, DON'T use your credit card for cash - very, very expensive. Only use a debit or atm card - and check rates at your bank (I just saw that Wells Fargo charges $5.00 per international transaction - that can add up quickly) - credit unions often give you some "no fee" transactions per month and generally low fews after that, though Visa will probably still charge you 1%.

I always bring home enough euros or pounds so that on my next trip, I can at least get from the airport to the city without looking for an ATM.

I usually take about $200US cash with me just in case of an emergency but I use my ATM card or my credit card while I am there.

Lyn,

If you have a Bank of America account, you can use your BofA card at any Barclays ATM in London and not pay any fees. BofA has partnerships with different European banks and if you use an alliance bank, you don't pay ATM fees or International Convertion fees. I did that when I was in London and had no problems.