When to buy dollars?

Road_Hog

rightlife wrote:

I'm off to NY in three weeks. I've been watching the Dollar and it's now 1.93 dollars to the pound...
I'm getting really itchy feet and want to buy the dollars now because that is a fabulous rate!! But is it likely to go up anymore between now and Dec 13th? or worse is it likely to go down?

Any ideas?? What would you do?

You can't second guess currency markets and the "experts" usually get it wrong. Best way to spend abroad, is to get a Nationwide credit card, as they don't siphon off some of the currency exchange and use this for as much of your purchases as you can.

For all other purchases just use your cashcard at the hole in the wall. Take out the equivalent of £100 at a time (or more) to keep the commission charge as a percentage to the minimum. I don't ever change any money up before I go anymore, after clearing customs it's straight to the cash machine at the airport. Obviously if you were flying to some tinpot airport in a remote part of Africa/Asia you would change up some money first.

Keanosafc

I've been reading these links as I'm going to New york early next year. I have a barclays current account, would it be worth me drawing my money out of atms in Newyork or do barclays charge for this benefit?

bellagio_2

Barclays has a fantastic agreement with Bank of America and if you use B.O.A ATM's there will be no cash withdrawal fee. There will be a 2.75% Visa handling charge incorporated into the exchange rate. Not quite as good as Nationwide but a lot better than the other big banks.

pin

Hi, Here is my list of top places on how to get money to spend abroad:

[FONT=arial,helvetica,sans-serif] [FONT=times new roman,new york,times,serif] [FONT=arial,helvetica,sans-serif] [FONT=arial,helvetica,sans-serif] [FONT=times new roman,new york,times,serif] [FONT=arial,helvetica,sans-serif] [FONT=arial,helvetica,sans-serif] [FONT=times new roman,new york,times,serif] [FONT=arial,helvetica,sans-serif] 1. Nationwide Debit Card for ATM withdrawals from destination country (no foreign loading) / the Audi credit card or the Post Office credit card for purchases in destination country (but watch out for Dynamic Currency Conversion) (no foreign loading for purchases, BUT watch charges for cash withdrawals).

2. Nationwide Credit Card (please note Nationwide's policy re chip and pin in foreign countries: see this thread from FlyerTalk) (no foreign loading for purchases, BUT watch charges for cash withdrawals).
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3. SAGA credit card (if you are over 50) for purchases in destination country (no foreign loading for European purchases, 1% for rest of the world, no cash withdrawal interest if balance repaid in full BUT 1.5%/£1.50 cash withdrawal fee).

4. Any other debit card for ATM withdrawals from destination country / any other credit card for purchases in destination country (but for both CHECK T&C's to see exact charges).

5. Thomas Exchange Global ("TEG") in central London - pay and pick up at store.

6. Travelex online (remember Travelex will price match any other exchange service, i.e. the one above) -pay online, pick up at airport.

For price matching: order through Travelex online as you would do normally, then call up TEG (02072401214 or 02078281880) and get a quote re their exchange rate. Email Travelex: [EMAIL="customerservices@travelex.com"]customerservices@travelex.com[/EMAIL] (must be done on the same day) stating the following: your Travelex reference number, your currency quote from TEG (and the fact you got it from TEG) and your address (Travelex will send you a cheque refunding the difference). Also Travelex normally acknowledge receipt of your email. Full terms and conditions of the Travelex Price Promise are on the Travelex website.

7. Marks and Spencer - pay online or pay and pick up instore.

8. Online FX (using this link ensures free deliver) - pay online, delivery to home.

9. Thomson Travel (they seem to use Amex as their travel money provider) - pay online, delivery to home.

10. Co-op Travel (they use Currency Express / Exchange and offer free delivery for orders over £300) - pay online, delivery to home.

11. Post Office (while probably not the best rate, there are many of them around, so may be convenient) - pay online, pick up at PO or pay and pick up at PO.

12. Haggle with High Street travel agent (which may ensure better rates than 5 to 9 above) - pay and pick up instore.

With 4 - 12, if you are paying with debit / credit card check your T&C's as many providers charge for the privilege of using money exchange services.

Here are links to ATM locators: VISA and MasterCard

Here are various information links to VISA: Foreign Exchange Rate FAQ and Visa Exchange Rates

Also please read Martin's article: Spending Overseas and Loading Technicals

Also look at the these forum threads: The Cheapest Way to Spend Overseas Discussion Area and How to buy TCs and foreign currency

Hope this all helps!![/FONT][/FONT][/FONT][/FONT][/FONT][/FONT][/FONT][/FONT][/FONT][/FONT][/FONT][/FONT][/FONT][/FONT][/FONT][/FONT][/FONT][/FONT][/FONT][/FONT][/FONT]

Former_MSE_Natasha

pin wrote:

5. Thomas Exchange Global ("TEG") in central London - pay and pick up at store.

Wow...1.94 @ Thomas Exchange Global

Does anyone remember the highest the US dollar has risen in the past 20 years? I.e. when and what may have caused it?

gingin_2

MSE_Natasha wrote:

Wow...1.94 @ Thomas Exchange Global

Does anyone remember the highest the US dollar has risen in the past 20 years? I.e. when and what may have caused it?

http://www.thisismoney.co.uk/investing-and-markets/article.html?in_article_id=415202&in_page_id=3

The pound soared today to its highest levels against the dollar since Black Wednesday in 1992, when Britain was forced out of the European Exchange Rate Mechanism.

lynn44

does anybody know please if any sites earn you points (ipoints) or cash back (quidco) I looked couldnt find any..
Thanks

teddyco

I have a question for "rightlife"? Do you have the option of getting out of New York to do your shopping? New York prices are some of the highest in the USA and taxes in Manhattan are horrible.

If you can afford to rent a car, get away from Manhattan and into the suburbs where there are "outlet malls" that offer prices that are more affordable.

For example, I lived in Boston USA a few years ago at the request of my company and worked in the City of Boston. The Boston malls are very expensive but there were "outlet malls" a few hours away that offered some of the same merchandise at greatly reduced prices.

Wrentham Mall is a name that springs to mind.........

Another option is to avoid New York altogether, and fly into Boston for a few days. Get a rental car and drive two hours north to New Hampshire to do all your shopping. The town of Nashua sits at the NH border and it's loaded with high profile stores; i.e. Calvin Klein, Macy's, Ralph Lauren, a mall, Best Buy, Circuit City, Wal-Mart for cheap cd's and electronics, etc.

The beauty of driving there is that there is absolutely NO sales tax in the State of New Hampshire so everything you buy is Tax Free! I mean everything! Most folks in Massachusetts drive to New Hampshire to purchase their large items as a result...fridge freezers, washers.

Find a great room in an old Brownstone hotel in Back Bay or Beacon Hill, and then drive out of the city and see the New England countryside during the day. There is loads to do in Boston just like in New York, and the new "Big Dig" is complete and they are now working on a series of new parks in the city.

I would also have to agree with several of the other members, don't be so quick to transfer all your money into dollars; I don't think this rate is going to "plummet" any time soon. At least not to a level that will cause you to lose that much money.

I think the rate at the moment is hovering around 1.97 per XE.com, but you will never get that rate as that is the rate that banks charge each other to move large sums back and forth. If you had several hundred thousand or millions, you would be able to get that rate.

For example: If you use PayPal to buy Dollars and the market exchange rate was 1.97, they make their cut by reducing the rate by 5 points and you would purchase them at 1.92.

That Nationwide ATM card was something that I did not know about, and will have to keep that in mind for future visits to the US.

monkeyspanner

CHEEKYFLYGIRL wrote:

Hello,

I too am going to New York on December 13th, but don't have a Nationwide account. I was planning to take a small amount of dollars/cash (from M&S - good rates, no commision) but wanted to take some travellers cheques too for added security. I want to avoid using my expensive Lloyds TSB card abroad!

I have discovered the American Express travellers cheque card - where you 'top-up' the card with funds before you leave home, then use the card in the US (or elsewhere) as a kind of debit card - ie ATMs, and in shops as you would your normal cards. Sounds great, and convenient, but does anyone have answers to the following...?

1. What is the initial 'fee' for purchasing the card? I believe thre is one, but don't know how much...?

2. When I take dollars out of an ATM, will I be subject to any extra fees?

All asssistance/advice gratefully recieved!

Thanks guys....

G x

When this card came out AM EX were offering a bonus on minimum amounts of money put onto the card typically $50 or $75 bonus on $750 or $1000 deposit but I haven't seen any of these offers lately. If you use an ATM you pay a fee to AM EX but you may also be liable to a withdrawal fee levied by the ATM company. Also due to the fees it is difficult to know how much you have left on the card and you usually end up carrying a few dollars on it all the time, a bit like the spare bits of foreign cash in your drawer at home. I used the card I got several times in the US without problems. There was a lot of criticism on this board of the low exchange rates AMEX were offering. I would just use a credit card as the exchange rate is nearly always better than the exchange rate offered on the high street for cash or travellers cheques. Assuming the dollar rate doesn't change significantly.

Online Rates today (6 Dec)
Travelex 1.9134 (1.885 after bank cash payment charge)
M&S 1.906 ( 1.877 after bank cash payment charge)
LloydsTSB 1.8765 (no charge with lloyds account)
Am-Ex Card 1.892064 (1.864 after bank cash charge)

MikeyPM

I was wondering when to buy dollars and i think this thread has answered this question, but this thread has thrown up what should i do when my dollars run out, im going on a round the world trip and i applied for nationwide account and got turned down, I am going away with a lloyds tsb debit card and lloyds tsb airmiles credit card and i wondered if it is best to withdraw cash on the debit card or spend on the credit card, as according to this site, lloyds are going to murder me with charges, any help would be appreciated.

Thx Mike:)