Avoiding Tourist rates

Peter_Lanky

Lets face it, tourist rates are a legitimate way for financial institutions to rip us off yet again. I don't know how widespread tourist rates are in the world, but when I've visited other countries in SE Asia, when you exchange money you get the official exchange rate at the time of the transaction. Do the same in this country, and you get the inferior tourist rate. I don't even think the concept of tourist rates applies in SE Asia.

I have avoided this by having a Euro bank account for visits to Europe, but next year I want to visit Vietnam, where most transactions are in US Dollars. So far, I have not managed to find a US Dollar account that:
Doesn't charge a monthly fee, or
Doesn't have a minimum deposit, and
Has a local branch where I can physically get the cash.

Does anyone know of an appropriate US Dollar account, or if not, an alternative method of exchanging cash to avoid the dreaded tourist rates? Using a credit/debit card is not really an option as I expect to (hope to) be in places where there are no cash machines.

jonesMUFCforever

How many millions do you want to deal with?

If you are not in that league then your best way is to trawl the net for the best rates.
I think Martin has/did have a tool for this.

Peter_Lanky

I've been through that process, and all I can find is tourist rates which are typically around 3% lower than the official exchange rate.

DavidHayton

Have a word with Crown Currency Exchange. They can sell you US dollars at a rate above the inter-bank rate. Not sure how they manage it, though I haven't seen any of their ads in a while ....

More seriously Martin's travel money maximiser thingy has three places in London offering better than $1.59 on £3000. According to the BBC, the interbank rate is a shade over $1.60 so you should be able to do better than 3%.

jen245

DavidHayton wrote: »

Have a word with Crown Currency Exchange. They can sell you US dollars at a rate above the inter-bank rate. Not sure how they manage it, though I haven't seen any of their ads in a while ....

More seriously Martin's travel money maximiser thingy has three places in London offering better than $1.59 on £3000. According to the BBC, the interbank rate is a shade over $1.60 so you should be able to do better than 3%.

Crown Currency went into liquidation months ago.

OP have you considered the Citibank US Dollar current account?

http://www.citibank.co.uk/personal/banking/international/eurocurrent.htm?merchant=citi

Peter_Lanky

jen245 wrote: »

Crown Currency went into liquidation months ago.

OP have you considered the Citibank US Dollar current account?

http://www.citibank.co.uk/personal/banking/international/eurocurrent.htm?merchant=citi

I did see Citibank in my searches, but there is no real way of physically getting the cash, without paying a fee, which negates any benefits.

DavidHayton

jen245 wrote: »

Crown Currency went into liquidation months ago.

Sorry, I was being ironic to make the point that banks need to charge fees in order to generate an honest profit. David

gt94sss2

Peter_Lanky wrote: »

Lets face it, tourist rates are a legitimate way for financial institutions to rip us off yet again. I don't know how widespread tourist rates are in the world, but when I've visited other countries in SE Asia, when you exchange money you get the official exchange rate at the time of the transaction. Do the same in this country, and you get the inferior tourist rate. I don't even think the concept of tourist rates applies in SE Asia.

Most countries will have floating exchange rates - rather than having an artificial fixed exchange rate controlled by the State. Having such floating rates generally benefits you.

Does anyone know of an appropriate US Dollar account, or if not, an alternative method of exchanging cash to avoid the dreaded tourist rates? Using a credit/debit card is not really an option as I expect to (hope to) be in places where there are no cash machines.

HSBC operates in Vietnam but what makes you think their won't be any cash machines where you are?

I suggest you read the posts by chattychappy in the threads here and here

You may find it beneficial to get a debit card from Metro Bank and/or Norwich and Peterborough Builiding Society; and a credit card from Metro Bank, Halifax, the Post Office etc - to avoid certain fees.

Regards
Sunil

Peter_Lanky

gt94sss2 wrote: »

Most countries will have floating exchange rates - rather than having an artificial fixed exchange rate controlled by the State. Having such floating rates generally benefits you.

HSBC operates in Vietnam but what makes you think their won't be any cash machines where you are?

I suggest you read the posts by chattychappy in the threads here and here

You may find it beneficial to get a debit card from Metro Bank and/or Norwich and Peterborough Builiding Society; and a credit card from Metro Bank, Halifax, the Post Office etc - to avoid certain fees.

Regards
Sunil

I realise that the exchange rate varies, and I'm OK with that. What I want to avoid with tourist rates is being given a lower rate for US dollars in this country whatever the official rate happens to be. If the rate is 1.61, I want to get 1.61 or thereabouts, not 1.55 as tourist rates would give me.

However, reading some of the comments on the linked threads, it may be more appropriate to take Sterling notes with me, and just get enough US dollars to cover the visa cost. (another pointless rip-off, but that's another story).

I am hoping to visit plenty of remote places outside the main cities. There may well be cash points, but I'm not willing to take the risk and end up with no money. I already have an appropriate credit card, but may get a Sainsbury's one, as for a £5 a month fee you get worldwide travel insurance.

glider3560

Peter_Lanky wrote: »

but when I've visited other countries in SE Asia, when you exchange money you get the official exchange rate at the time of the transaction

Really? How do they make any money? If you do get an interbank rate then there must be a commission charge.

Peter_Lanky

glider3560 wrote: »

Really? How do they make any money? If you do get an interbank rate then there must be a commission charge.

I've always wondered that myself, but they do and no commission charge suddenly added at the end. In Singapore for example, there are loads of official money changing kiosks in shopping centres. The rates offered vary slightly, but comparing them with the official rates in the press/teletext, they were almost identical. Last time I went for example I was getting S$2.95 to the £. Compare at the same time, the tourist rate I could have bought S$ for prior to leaving the UK was about S$2.4 to the £. Absolute robbery.