Never use the money changers at airports. There is a built in minimum 10% charge.
Here’s my trick for saving money overseas. Don’t go overseas.
Maybe this is one of the few advantages of being old. I have been travelling abroad since the 1980s and so I always went to the foreign exchange market in the US before I traveled to get currency. It never really occurred to me to just use the ATM. You could get American Express travelers’ cheques (remember them?) but you didn’t really get a good exchange rate on them. I just got cash and had the hidden money belt and a hidden money pant insert (because thieves knew about the belts). And if you went to the Eastern Bloc, you got screwed on the exchange rate and had to turn any excess currency in when you left so you got doubly screwed. I remember having extra East German money one time and buying a couple nutcrackers to not simply have to turn my money in. It was in the early 80s so the exchange rate was great and I got a good deal.
ATMs are even worse, because there's an up front fee + an exchange fee. The airport ATMs are the worst. Go somewhere and try to withdraw local currency at a few different banks: the fees can differ wildly. One near me charges a $20-$40 fee + an outrageous exchange fee for a $250-$500 equivalent withdrawal. The one across the street is around $3 and 5%.
I use no-fee ATMs for cash in Europe, my bank doesn’t give the best exchange rate, but it is hard to find a better rate for individuals. Or we just use a credit card which usually uses about the same exchange rate. (MasterCard or Visa. Many European businesses don’t take Discover even if they take Diner’s Club International Logo on the back of your Discover card). American Express used to be the go-to for international travel, but I haven’t used it overseas for a decade or two.
In any event, your credit card company or a ‘to big to fail’ bank is likely to give you a better exchange rate than the locals. Look for a bank that doesn’t charge fees on top of the exchange rate.
I took traveler’s checks to Europe the last time I went and lost money exchanging them. But that was a long time ago.
Sometimes I lost twice on the same $100: Exchange dollars for pounds and lose some. Then have a few pounds left over and exchange pounds for francs. Double loss.
Not that I’m going to go again, but I think I’d be better off using a credit card at the bank’s exchange rate.
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