Need to Buy Foreign Currency for Holiday

batrarobin on 02/05/2017 - 15:16

Hello professionals

Need your expert advice here. Heading to Canada and the USA soon for a holiday and need to buy foreign currency. We plan to use our 28degrees credit card for most of our local expenses however still need to carry cash, about CA$500 and US$500 for just-in-case. Any suggestions as to where should we buy the foreign currency from without ending up with a terrible exchange rate or incurring any international transaction fees.

(1) Can we make an overpayment into our 28 degrees and withdraw foreign currency through ATMs on our holiday?

OR

(2) Are there any cash cards that we could top up with AUD and withdraw through foreign ATMs getting normal visa/mastercard exchange rate?

OR any other suggestions

Financial

Comments

  • Baysew on 02/05/2017 - 15:17
    +8

    Citibank Plus.

    • ApplePineapplePen on 02/05/2017 - 16:39
      +1

      totally agree… the rate you get from the citibank atm is better the the xe currency converter.

      • Peck on 02/05/2017 - 18:59
        +1

        Agreed, and I think that 7/11s in USA have Citibank Plus ATMs

        • tajid on 07/05/2017 - 14:05

          but you can withdraw using Citibank Plus at any ATMs in the US though right? Including the ones at the airport?

        • Peck on 07/05/2017 - 16:19

          @tajid: I don't have any first hand experience, but I assume that you can, but may be hit with fees at non-citibank atms.

  • retiredfeline on 02/05/2017 - 15:31
    +2

    A while back 28 Degrees made option 1 no longer cost free by levying cash advance charges. You may want to review the OzB wiki page on travel cards. In fact if soon means not enough time to get the Citibank Plus, you should hop into a time machine to read that wiki page.

  • KaTst3R on 02/05/2017 - 15:38
    +1

    I find the rates from Anying (there is a perth branch) pretty good compared to the big 4 banks. Call and ask before going to change some cash.

    As for cash cards, most banks would have a Travel Money Visa/Master Card where you can load AUD and fix multiple rates for your holiday. There is a small fee of I think US$3 per withdrawal on top of the bank exchange rate spread. Personally, I would rather carry more cash and just swipe the credit card for any other expense.

    Other than that, a good tip I can give you is to try and get a stack of 20 x $1 or something to use as tip. Just keep a couple of $1 bills in your pocket so you dont fumble around when a tip is expected. Seems foreign to us but someone ever gave me a scolding before for not tipping.

  • Randxyz123 on 02/05/2017 - 15:57
    +1

    If "soon" is under 3 weeks you don't have time to get Citibank plus. Your best bet is to go through your bank and get a travel card.

    • batrarobin on 02/05/2017 - 16:16

      Thank you, we still have about 5 weeks so will look into Citibank Plus as a priority. Cheers.

      • Peck on 02/05/2017 - 19:00
        +1

        Do it, and don't hesitate!

  • ilikeradiohead on 02/05/2017 - 16:46
    +3

    TL;DR, take money out of the ATM, not a money changer.

    When I was recently in HK I was looking at the forex rates at money changers and none came close to being better than taking money out of an ATM with citibank+, or even with the Westpac ATM alliance (which levies a 3% fee but no fixed fee). I'd say even if you can't get the citibank+, and aren't with westpac, I would just take the cash out of the ATM, as most banks have a $5 charge + 3%. So the cost of taking out $500 AU = $20, which is the equivalent of having a buy/sell spread of 4% (they're probably closer to 10%).

    Also, I'm curious as to why you want to have so much cash on hand. Carrying around a large amount of cash makes you a theft target. You shouldn't need much cash in the US or Canada, as you can pay for most things with credit card (including tipping if you have paid for the meal with your CC). I think if you wanted a just in case emergency you should have a spare credit card separate from the rest of your belongings.

    • peterpeterpumpkin on 02/05/2017 - 20:51
      +1

      Just a note about the amount of cash needed in an emergency.

      As a lowly backpacker, I would always carry an appropriate amount of cash that would get me through a 5 day period (i.e. 3 business days, plus buffer if you have the balls) in the destination I'm travelling to. And by cash I normally just mean Australian Dollars if it's a destination popular with Aussies. When your go to card is swallowed by an ATM and your backup card fails you, you'll be thanking your lucky stars for the invention of cash. Especially towards the end of a trip.

      But as you said a second card is often preferable to emergency cash in a developed country and of course can go a lot further. VISA emergency cash, for example, on a high-limit credit card is tangible insurance in an emergency (when it works in the country you're in and it's not Western Union's close of business or some obscure religious holiday, oh and you're not in India for some reason). Debit cards can sometimes be dispatched if you have time. Forget about lost "keycards" (Commonwealth Bank won't even send you a replacement card).

      Of course if you lose everything your holiday's screwed anyway.

    • cr12330 on 18/05/2017 - 14:55

      The thing is I want to have like $2000 AUD which is around 10,000RMB, carrying so much RMB isn't great because their highest note is a 100RMB so that a lot of notes to try and put in a bag and don't really want to lose that while in China. I think the best way to take $250 to $500 AUD at a time when in China looking to do something like this when using the ATM.

      Im thinking of trying out my Bank West card when going to a Restaurant or if I buying any goods, just hoping that they will have mastercard available and not like Union Pay only.

  • modsec802 on 02/05/2017 - 18:44
    +1

    Just get it exchanged here in Australia before you go making sure you get some small notes for tipping.

    Just compare your own bank which usually offers no fee for conversion with Travelex online exclusive rates and also the Australia post rate.

    Don't fret for such small amounts going out of your way to save $5 to $10 in conversion fees is hardly worth it IMO

    • Almost Banned on 03/05/2017 - 00:19
      +3

      HOLD YOUR TONGUE!
      You really need to turn in your Ozbargain card.
      NEVER buy foreign currency before departing.
      ALWAYS use 28 degrees for purchases
      ALWAYS use Citibank for ATM
      take some cash with you for emergencies - but exchange it when you get to the other side if necessary.

      • boomramada on 03/05/2017 - 12:55

        NEVER buy foreign currency before departing.

        Disagree with that, always have some foreign currency before you land. At least enough money for taxi or tip someone.

        • retiredfeline on 03/05/2017 - 16:13

          I do, when I go overseas I have Ozzie dollars which are foreign currency. :)

          It's not a hard and fast rule. If say going to the First World, it's very unlikely there will not be an ATM at the arrival port. Even at airport rates, it will be cheaper than buying here, particular if you factor in your time here. If that fails, you can often pay with plastic, or there will be money changers who will accept your AUD or leftover USD. Many countries in SEA have competitive rates for money changing compared to ATMs. Thailand and Vietnam were two.

          I can only think of a handful of countries where I would get some of their currency here. One was Cuba where one was advised to have USD (yeah, the "local" currency tourists use). There are also other countries where financial services are poor and you cannot get the local currency overseas, but are advised to have some USD or EUR.

          Anyway this is all part of researching a trip.

        • boomramada on 03/05/2017 - 16:36

          @greenpossum:

          Its all depend on where you go, there are lots of country except AUS$,
          but there are first world countries I been, they don't care even if you have Amex Centurion, they prefer cash.

          Of course countries such as Thailand, India and Vietnam, they prefer USD or AUD than their currency and same with Turkey prefer EURO.
          But in Switzerland, they prefer their own at most places.

          And in Japan, not all ATM accept your CitiBank, you need to find your nearest 7-11, when you going towards country side, that can be difficult.

          Nothing wrong with carrying bit of Foreign Currency

        • retiredfeline on 03/05/2017 - 16:42

          @boomramada: In Thailand and Vietnam, I exchanged AUD to local currency. You can't pay for street food with AUD or USD except at bad rates. I had no problems changing AUD to local there on arrival.

          Europe and Turkey, ATMs are everywhere, if one won't work, the next one probably will.

          Japan and Korea, most arrival ports have one brand of ATM what will accept foreign cards, and you can exchange AUD at backup. If you are going to the country, then just get some more cash in the city first. Ditto Singapore and Malaysia.

          Even Sri Lanka, I got money out of an ATM. I had AUD just in case.

          In short, very few destinations require exchanging money here at lousy rates because what local wants to tie up capital in a foreign currency with little demand. With plastic, and some AUD, USD or EUR, you're pretty much covered, unless the travel info notes otherwise. You can tell that using ATMs is very much mainstream now, from queries on forums on whether a particular airport has ATMs and where.

        • boomramada on 03/05/2017 - 21:14

          @greenpossum:
          I'm not saying carry $1000 with you, its always good to have at least $100 worth of. Rather than looking for ATM and wasting your time. For $100 worth of Foreign Currency, I probably I lose about $5 due to exchange rate, fees extra, sometimes time is money.

        • retiredfeline on 03/05/2017 - 21:17

          @boomramada: But you also spend time getting it here ahead of time. If you really don't want to wait at the ATM there will be money changers there willing to swap cash. At better rates. So no reason to get it here.

    • Baysew on 03/05/2017 - 10:54
      +3

      Don't fret for such small amounts going out of your way to save $5 to $10 in conversion fees is hardly worth it IMO

      Looking for around CAD $200 Canadian Dollars to Buy in Brisbane

  • maiuspala on 06/05/2017 - 14:04

    How does Amex Explorer compare to Citibank+ in US and Canada (exchange rates,surcharges), taking into acount you earn points for each purchase?

  • cybapete on 07/05/2017 - 06:56
    +1

    check out australia post you can order foreign currency through them but not all stores have it so it might take 2-3 days to come in

    https://auspost.com.au/travel-id/travel-money/foreign-cash

    • [Deactivated] on 27/11/2017 - 21:37

      Rates aren't great eg
      APost USD 72c/AUD
      Travelex 73.82

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