Obtaining US $‏

[lovetravellingoz]

Hi All,

Each country can be a bit different about the best (ie factoring in convenience) way to obtain local currency at the best rate (taking into account both rate given and any fees charged).


So for getting US Dollars to spend in the USA (I will be in New York City and Washington DC).

Do you get a better rate for buying US $ in Australia or in the USA?

• ie if better in Australia, I would cash up prior to departing.

In Australia (as I will want at least some cash to land with) where is the best place to buy US $

• Is it best to buy at a Bank or a Currency Exchange and if so where?
• Is the rate at the airport (Melbourne in my case) worse than other locations?

In USA

• Are ATM’s a cost effective way to get cash? (I have a Wizard Card. So I can pre-pay into it for withdrawing cash from ATM’s)
• I also have a Westpac ATM card for affiliated banks.
• Currency Exchanges (for converting $Aust)
  • Are all locations essentially the same? Or are Airports (JFK and LAX) better/worse?
  • Do banks give a better rate

Any tips/ red-tape to be avoided?

• • • ie Banks may, or may not, be time consuming for example???
    • Types of ATM that are better

Thanks.

 

[serfty]

I used to purchase money before going overseas. These days I do not as the Wizard is my Friend/Pal/Mate/Ami/amico/amigo/友人 !

See the "Rules": http://www.frequentflyer.com.au/com...rd-cash-advances-while-6960-8.html#post241810

Also, bobsi18's addendum with post #330 & #333 regarding limits.

There is also the NAB Gold card option but you need to put $5K per month through.

PS You should always have a plan B. Some with an Amex card have reported they can get a reasonable rate on travellers checks which apparently are readily accepted un the good ol' USofA.

 

[drron]

I always take some of my money to the USA in the form of TCs.Many places will give you commission free Amex TCs in US dollars.For me it is having a CBA gold card.Tcs are readily accepted in the US.We use ours at retailers.The only one we have come across that doesnt accept TCs is Borders and there are large signs advising of this.
On this last trip I took special notice as there are many(presumably who havent used TCs) who say they are difficult to cash.However in restaurants in such major cities such as Bemidji,Grand Rapids and Ely all in Minnesota our bill arrived in folders proclaiming we gladly accept Amex CCs and TCs.
We generally will take $US100 TCs,pay say a $20-30 bill in a store and get the change in cash continuously replenishing our cash supply.Never have to find an ATM and worry whether it is fee free etc.Have never paid a fee to cash TCs in the USA.On top of that when buying TCs here a better rate than cash.And we know exactly what we have paid in Aussie dollars.

 

[medhead]

Generally, I'd recommending using a bank. And I use NAB, as they charge the lowest fee of $5.

If you look at the web advertised rates for today we see:

Foreign Exchange Calculator

Currency Name          Buy -T/T        Buy draft or T/C      Sell draft or T/T    
United States Dollar   0.8598             0.8632             0.8463

IME the ATM exchange rate will be roughly the same as the T/T rate. Not sure of the really cash rate that NAB offer. But the above rates are better then the indicative cash rate provided by Travelex (to NAB).

https://www.holidaymoney.com.au/nab/daily-exchange-rates.html

Currency      Sell Cash      Buy Cash   Buy T/Cheque  Buy CashPassport
US DOLLAR      .8920          0.8321         0.8344            0.8357

So you will be about 3% better off going to NAB for a T/C then if you go to Travelex. to make up for the $5 fee the 3% will only start to pay off once you change about $200.

Really, working out who is best is a game of checking all the various exchange rates offered.

 

[Mal]

Generally, I'd recommending using a bank. And I use NAB, as they charge the lowest fee of $5.

I used to find Westpac's online Forex service (run by Amex) the best out of many I checked.

Some of the features it had (havn't checked for a few months).
Best rates in the market
Fee free cash+TC's
Ability to pay via Bpay Credit Card or A/C (no fee difference for either)

 

[Flashback]

I used to find Westpac's online Forex service (run by Amex) the best out of many I checked.

Some of the features it had (havn't checked for a few months).
Best rates in the market
Fee free cash+TC's
Ability to pay via Bpay Credit Card or A/C (no fee difference for either)

I assume it is this site: Westpac Internet -Foreign cash and travellers cheques online ?

It mentions payment by BPAY or phone, so assuming if you want to do it with a c/c it's over the phone ?

 

[Mal]

I assume it is this site:

Indeed, that's the one. Just did a quick costing, and $USD in cash or T/C's is currently at $0.8397. Still no fees.

Double checked against National, and they're offering 0.8527, so perhaps NAB is better - or the $AU is getting stronger today, and Westpac hasn't uploaded new rates recently.

It mentions payment by BPAY or phone, so assuming if you want to do it with a c/c it's over the phone ?

It offers BPAY from either savings or credit cards (assuming your credit card allows BPAY payments). No other option, unless you wanted to walk in off the street and deal. The rates will be different, and fees will be charged.

The same forex system (with different rates and fees) is also used by American Express (0.8362 / $8 fee cash / $0 fee TC) , Virgin Blue (0.8289 TC's / 0.8246 cash / $0 fee) and a host of other rebranded sites, although I always found Westpac to have the better rates.

 

[drron]

Interesting Mal but right now on the Westpac site i get-
CurrencyCodeT/TCheques or T/CNotesT/T or DraftsT/C or Notes


DollarsUSD0.8397PoundsGBP0.5039 For TCs or cash.


But at CBA-
US Dollar
USD
0.8474TC
0.8392cash
Great British Pound
GBP
0.5106TC
0.5032cash

So I can get a better rate at CBA for TCs but have to go into the branch to get them commission free.On line it is 1.09% fee for TCs and 1% for cash

 

[harvyk]

Me personally I exchange a few dollars for landing and my first couple of days usually at the CommBank (PS try their exchange rate calculator). Their rates tend to be OK, just watch the $8 or 1% fee, which ever is higher. (That said even with the fee it still seems to be a good rate).

I usually head OS with about $300 of the local currancy, and especially for the US take loads of smaller bills (eg $1's and $5's) as you'll need them for tips from virtually the time you land. (eg taxi \ airport shuttle etc...)

I'll then do cash withdrawl from my ANZ debit CC whilst OS. I've always received quite a good rate when doing withdrawls.

Just quickly in the US, I've sometimes found ATM's have a limit of how much they will let you withdraw in one go, sometimes it can be as low as US$100, which can end up expensive if your paying large OS conversion fees.

 

[Flashback]

Indeed, that's the one. Just did a quick costing, and $USD in cash or T/C's is currently at $0.8397. Still no fees.

Double checked against National, and they're offering 0.8527, so perhaps NAB is better - or the $AU is getting stronger today, and Westpac hasn't uploaded new rates recently.



It offers BPAY from either savings or credit cards (assuming your credit card allows BPAY payments). No other option, unless you wanted to walk in off the street and deal. The rates will be different, and fees will be charged.

The same forex system (with different rates and fees) is also used by American Express (0.8362 / $8 fee cash / $0 fee TC) , Virgin Blue (0.8289 TC's / 0.8246 cash / $0 fee) and a host of other rebranded sites, although I always found Westpac to have the better rates.

Interesting, thanks. I'm heading to Europe in November (mostly EU, only a couple of days in the UK) so pondering when I should start organising some money.

My options are:
- Wizard CC and take $1000 AUD as a backup
- Wizard CC, some AUD and come money that has already been exchanged here
- A combination...

 

[murielc]

I travel back and forth from north america quite often and usually find that there isn't a huge difference. Since the rate is so good now I am just buying my currency locally and putting it on a pre-paid Travelex cash passport so I can use it like a credit card or withdrawl from ATMs with my exchange rate already set

 

[serfty]

... Since the rate is so good now I am just buying my currency locally and putting it on a pre-paid Travelex cash passport so I can use it like a credit card or withdrawl from ATMs with my exchange rate already set

Hi mulrielc, welcome to AFF

IMHO There is no such thing as a good rate from Travelex Cash PP!

A purchase of a new cash passport with USD1000 today will cost AUD1200; this is about $40 mor than the current cross rate.

 

[equus]

In Australia (as I will want at least some cash to land with)

Never thought I would say this (yes, I know the Travelex reputation), but if you are only after a relatively small amount of cash in Australia before you go (for arrival), then it's the fees that become more of an issue than the actual rate. With things like minimum $5 or $8 per currency, if you only want a couple of hundred, this is a big sting.

I was actually looking at the major banks for a few NZ$ for the weekend, and this was going to be an issue. Ended up looking at Travelex Online (much better rates than fronting at the airport booths - basically pre-order, lock in the rate, then collect at the airport). 1% commission, plus another 1.5% for paying by Visa/MC (and cash advance - so use a debit card), order 24 hours prior, or no additional fee if you BPay, but need 3 days advance for that. Exchange rate was close enough to the same as the cash rate for the banks. Minimum purchase was A$250

The clincher - go via the Qantas money link, and for amounts between A$250 and A$1000, 5 FF points per dollar. Depending on how you value the points, makes the fees (which were pretty good to start with) fair value.

 

[medhead]

So I can get a better rate at CBA for TCs but have to go into the branch to get them commission free.On line it is 1.09% fee for TCs and 1% for cash

Note that CBA have an $8 fee in the branch.

Never thought I would say this (yes, I know the Travelex reputation), but if you are only after a relatively small amount of cash in Australia before you go (for arrival), then it's the fees that become more of an issue than the actual rate. With things like minimum $5 or $8 per currency, if you only want a couple of hundred, this is a big sting.

Indeed but if you look at post #4, you can see that the difference between NAB and TRavelex is about 3 cents (or 3%) hence NAB's $5 fee is cheaper once you get to about $200.

I did really look into this big time back in 2005 and double checked in 2007. This involved surveying and comparing the exchange rates offered by a range of banks and currency providers. In doing these checks I found NAB to offer the best exchange rates. But in 2005 I used CBA because they had no fee. It is now $8 hence i moved to NAB. Of course this is only worthwhile if changing a minimum of $200 or $300.

edit: I'll have t check out Westpac. Thanks Mal

 

[Mal]

Note that CBA have an $8 fee in the branch.

Gold and Plat CC's give fee free TC purchase. There might be other exemptions (senior's card comes to mind).

 

[drron]

As Mal said.In fact this is the only use my CBA gold visa gets.Hence fee free TCs.

 

[medhead]

Ahh, looks like a got a couple of reading lesson to go

 

[equus]

Indeed but if you look at post #4, you can see that the difference between NAB and TRavelex is about 3 cents (or 3%) hence NAB's $5 fee is cheaper once you get to about $200.

I am afraid I am not convinced. NABs fee is stated as being 1.1%, with a minumum of $10, not $5 anymore. You also need to look at the CASH (provided by Travelex) rates if you are after Cash - the NAB rates for Cheques and TTs don't apply to cash. Indicative rates for cash this morning are NAB (note that a lot of the banks are outsourcing physical foreign cash to Travelex) for NZ$ is 1.1874 with Travelex Online (via the Qantas money) actually offering a better rate of 1.1950. (Yesterday I got 1.1900 from Travelex, so even if NAB is just slow updating this morning, Travelex was still better). This compares to the (current) XE mid-market rate of 1.2354. So there is about a 2.6% spread on the Cash to start with (which is close to the 3% difference you were quoting), plus add the fees involved.

Travelex worked out cheaper for me - on the exchange rate, as well as lower fees, and FF points as well. Mind you, on the NZ$300 I got, it is not sheep stations - I paid $258.44 all up for the convenience of being slow and having to use a debit card, and being able to pick up at the airport on the way through rather than having to make a separate trip to a bank. On my calculations, NAB would have cost me $262.65 (minimum $10 fee included). So I saved a giant $4.21, a bit of time, and gained 1292 FF points.

 

[serfty]

I believe you still can't go past either the NAB Gold or the Wizard. They are both so close to the cross rates (sometimes more, sometimes less) that it's a wash on which to choose.

The majority of airports that I arrive into countries have ATMs that take most cards - A quick withdrawal of local currency and I am on my way.

Do your homework - here and on FT, some airports may not have ATMs available or there may be other issues with your card / money etc.

 

[equus]

I believe you still can't go past either the NAB Gold or the Wizard. They are both so close to the cross rates (sometimes more, sometimes less) that it's a wash of wich to choose.

No disagreements with that at all. Really talking about those that absolutely have to have cash before they arrive (and possibly don't have one of those cards).

OT, but one time I did need physical cash, and airport ATMs were not an option (quite a few years ago) was a transit in Brunei. For transits of 4 hours or more, a quick tour is offered - pick up and drop off back to the airport. The catch - you need to get a VISA, available at the airport only, and for AUS passports, pay $1 Brunei (or $1 Singapore) - in Cash, those currencies only, and at that stage, nothing pre-immigration for changing it.