US Dollars Currency exchange-Help!

[IAN5150]

Hi
Working out now about currency exchange,As a start I just ordered £500 of US Dollars which Ill pick up $798,Anyway as a test i just put in details for changing back to UK £ and I would only get £449!!
Is this right youd lose fifty quid on every £500 you didnt spend? so in effect if you brought a grand back you would lose £100?
Any advice,Thanks IAN

 

[kazzie]

Hi,

This will be about right.The difference between the buy and sell rate is how Foreign exchnages make their profit

 

[rob@rar.org.uk]

This is one of the reasons I use credit cards. I think the spread on travellers cheques is even larger.

With credit cards not only do you get a better exchange rate but you also convert into dollars only the exact amount that you spend. When I used to take cash I would guesstimate how much I needed, then add a little extra to be on the safe side. Invariably I brought some cash back, often a fairly large amount, and would lose money converting it back into Sterling. I've now use credit cards as often as I can, and only take a small amount of cash for incidental purchases like drinks, road tolls, etc.

Every dollar that you bring back home (either cash or TCs) makes your holiday that little bit more expensive.

Regards

Rob

 

[IAN5150]

Thanks both I kind of put this tothe back of my head but now Im going to have to think hard about how much to take.
A CCs out for me Rob I hate the things goes back to my younger days vowed never again,Everythings hard cash for me now!
Thanks IAN

 

[rob@rar.org.uk]

I understand your point Ian, but you should bear in mind that hard cash is often the most expensive option.

Have a great holiday.

Regards

Rob

 

[Enright78]

I'd agree with Rob, ccs or switch cards do it for us. We tend to take a small amount in cash. Have not taken TCs for years.
One thing bothers me though....how do you manage to bring any money back to exchange!!!! It's not a problem I have ever had!

 

[Hilary]

Just keep what you don't use (don't change it back to sterling) and put it towards the next trip!

 

[oscarwilde]

i definately understand the exchange rate from £/$ and $/£ my husband works for a US company and gets paid in dollars which is transferred into a UK account and with the exchange rate the way it is he loses about £300 every month. The sad part of it all is we're off to orlando in 3 weeks and we have to change the money back again!
cath

 

[mike230652]

IAN

rob is absolutely spot-on ( IMHO ).

We got hit with the problem of losing out both ends with Travellers cheques and got an American Express card for our 2001 holiday.

All we did was put to one side the amount of cash we'd have converted.

The exchange rate was way better than TC and we actually ended up with some of our cash left.

Much more convenient, a cash saving plus AmEx is accepted everywhere. We're off again late November and we'll be doing the same this visit, plus the £ vs $ scenario makes it even more attractive this time!!

mike230652

 

[Fantasia Sam]

IAN

I totally understand about the cash vs credit cards I struggled for many years with the "badnes" of CC's OK it was my pure lack of respect to debt

Anyway you should check with your bank to see if you can draw money on your debti/cashpoint card whilst you're out in the States maybe this would be more in your favour? So that you're only get out what you need without having to bring back loads of cash. I'm not sure if you get charged for this though, does someone else know?

 

[mickg7dyd]

Hi,
Sorry but I don't understand the concept of "bringing money back"
I've been to the USA about 15 times and never managed it yet!!!

Mick.

 

[edie w]

If your cash card has Cirrus printed on the back of it, you can use it in ATMs. You'll be charged $1-2 per transaction for the privilege, but if you only do it once or twice that's not so bad, and the exchange rate is usually much better than TCs.

We also use a credit card, and pay it off quickly. Again, it's convenient, safe and the exchange rate is good. I always keep the receipts together so I can see just how much we've spent.

 

[IAN5150]

Thanks for the help everyone-

I think Im going to take a bit less than originally thought This has been a bit of a problem,How much to take?
Hilary-I dont think its practical to save cash for next trip its been 7 years this time! So I dont 3 want to keep a bunch of $ Til 2010! (I def hope it wont be that long!!!!)
and Oscar If your hubby loses £300 a month he must be picking up £3K!! Cant be bad!
Cheers qgain IAN