Welcome to the MacNN Forums.

macintologist · Sep 3, 2006, 05:10 AM

I'm a US college student with an account at Wells Fargo. I might be doing a semester of study abroad in London and I'd like to elicit advice from fellow long-time internationally travelers and spenders.

I was thinking that the easiest way to spend money in London would be simply using my existing US credit card and simply paying the bills with online banking. But then I know that banks typically dont have the greatest exchange rates. What do you recommend for avoiding huge international transactions fees and finding the best exchange rate and where to exchange?

Goldfinger · Sep 3, 2006, 05:35 AM

I don't know but in my eyes Visa always gives you fair exchange rates.

Obi Wan's Ghost · Sep 3, 2006, 05:42 AM

Citibank. You can open accounts for different currencies and transfer money between them. The exchange rate will apply when you transfer money from one account to another. When you use your Citibank ATM card you can choose which account to withdraw cash from so you won't have to use a credit card and pay higher exchange rates, commission or interest. You will have one debit card to access different currency accounts.

- - e r i k - - · Sep 3, 2006, 06:58 AM

What I do is to use a no-fee bank with a Visa debit card. Visa does give fair exchange rates (much better than exchanging cash in the country anytime).

macintologist · Sep 3, 2006, 07:10 AM

Originally Posted by - - e r i k - -

What I do is to use a no-fee bank with a Visa debit card. Visa does give fair exchange rates (much better than exchanging cash in the country anytime).

Have a good example for a bank?

- - e r i k - - · Sep 3, 2006, 07:15 AM

Originally Posted by macintologist

Have a good example for a bank?

Sorry. Not American. But go for anyone who do not have fees on international ATM withdrawals. Have any online only banks over there? They're probably the only ones who can afford it.

Mastrap · Sep 3, 2006, 07:19 AM

Originally Posted by macintologist

But then I know that banks typically dont have the greatest exchange rates.

The opposite is true. Using your ATM card gives you the best exchange rate you can hope for. See if your bank has a deal with a UK bank that allows you to withdraw cash without a fee. If that's not the case you can always open a UK bank account and transfer money from the US in one single transaction.

macintologist · Sep 3, 2006, 01:01 PM

All I know for a fact is that when you transfer money between banks in different countries, there is at the very least some sort of currency exchange bank fee. I guess what you have to do is find a bank with the best because the market tends to take care of the rest. The dollar is still relatively weak.

Mastrap · Sep 3, 2006, 02:42 PM

Originally Posted by macintologist

All I know for a fact is that when you transfer money between banks in different countries, there is at the very least some sort of currency exchange bank fee.

It's usually about $1.50. Hardly breaks the bank.

molala · Sep 4, 2006, 03:52 AM

Bank of America has an alliance with Barclays in the UK, so I'm not charged fees in the US if I use their ATM. Reverse might also be true.

I still prefer to use my credit card overseas (mastercard or amex), they add such a small percentage over the exchange rate that it usually still beats exchanging cash.

And if you are exchanging US$ cash for pounds sterling here, Marks and Spencer have the best rates.

Scotttheking · Sep 5, 2006, 09:26 AM

Originally Posted by molala

I still prefer to use my credit card overseas (mastercard or amex), they add such a small percentage over the exchange rate that it usually still beats exchanging cash.

3%...