How to buy travellers cheques or foreign currency

Leftynick

I have a HSBC mastercard and if i could get away with getting my euros for a holiday later this week without charges then i would do it too. If not - who's currently the best for exchange rates/commision free etc??

Lil_2

Marks & Spencer and Post Office are currently offering the best exchange rate for euros with no commission charge. M&S rate today is 1.421 and Post Office is 1.4086. You can check the daily rate on their sites every day

pin

Lil wrote:

Marks & Spencer and Post Office are currently offering the best exchange rate for euros with no commission charge. M&S rate today is 1.421 and Post Office is 1.4086. You can check the daily rate on their sites every day

Not quite true. Travelex online have a rate of 1.4291 and Thomas Exchange Global have a rate of 1.450 (both are commission free as well) today.

dalglish_2

I want to change 150 euros into pounds sterling. A ccording to the rate I should get £102.88, but I was only offered £95. I declined. Is there a better way to do this? Can I pay it into a bank account?

Rafter

Best thing is to find someone travelling to europe and then offer to sell it to them at the rate on xe.com (the rates the banks pay themselves)

Regardless of the 'commission free' offers you see, there is still a spread of rates (you pay a different rate for purchasing currency than selling it)

The difference is to cover the risk that rates move for the banks, and also to pay the salary of the person doing the transaction for you.

So to buy 150 Euros will cost you 102.88, if you then sold them back again you would only get £95. The difference of £7.88 if you like is the hidden commission the bank or post office gets.

Best thing..... open a nationwide flex account and withdraw cash at fee free atm's overseas - that way you get the bank rate, not the 'tourist' rate.

R.

dalglish_2

thanks R
Is it possible to pay into a bank account? What would be the rate?

grumbler

Yes, it is possible. However, I think the rate will be worse than at the Post Office.

lympus48

Hope this is not a silly question but if the view is that natiowide debit card is one of the best ways to draw money abroad which it seems- How do they make their money on these customer foreign transactions ?

grumbler

They make money on other transactions.
How do banks make money on basic accounts with cash cards?
How do CC companies make money by offering 0% on balanse transfers and/or purchases for N months?
....

dllevans

I have been shopping around to find the best rate on Canadian dollars today, and the best deal I found was OnlineFX. They have been mentioned on MSE in the past, but I have not used them. I decided to try them because:

1) they had the best rate (marginally better than Travelex and Marks & Spencer);

2) commission free;

3) they supply American Express travellers cheques. Amex TCs can be encashed fee-free at selected wordwide locations. For a list, see: http://www143.americanexpress.com/tcintl/feefreelocator/request?request_type=default&country=uk

4) they deliver to your door next day; and

5) they normally charge a flat £4.95 fee for delivery. However, if you buy via the 1stholidaystore.co.uk and pay by debit card you can get free delivery by entering "free delivery" in the Coupon Code box at checkout. Go to: http://www.1stholidaystore.co.uk/onlinefxClicks.htm

(It's probably been said before, but with most credit/debit cards you will be charged a cash advance fee for buying foreign currency. Use your Switch/Maestro instead to avoid this unless you know there is no charge with your card)

My money should be arriving tomorrow - I'll post here if there are any problems.

D