When we plan to travel abroad, we need to consider the currency exchange rate. In fact, various nations around the world have different currencies. The values of these currencies differ greatly from one another. Therefore, while planning to travel to another country, we must be aware of various details about the exchange rate of currencies. Generally, we prepare a short list of various essential things before the journey. In the list, the concern with currency should get a top priority.
In the post-pandemic period, the global inflation rate is increasing by leaps and bounds. Prices of various items, including the daily essentials, have increased significantly. Moreover, the values of different currencies have seen a topsy-turvey situation. In such a scenario, it is natural that economic considerations must receive top priority before travelling abroad.
Therefore, learning the ways to get the best currency exchange rate will definitely help to protect yourself from feeling burnt in your wallet or bank account. This article will try to provide you with sufficient information about the ways to get the best rate for currency exchange if you are planning to travel abroad.
Therefore, read the article to know every possible detail about a safe currency exchange procedure.
The Cheapest Currency Conversion
The cheapest place for currency conversion is your own bank. For instance, if you are a customer of the Bank of America, then the bank will provide you with a zero-fee currency exchange for amounts over $1000. However, if your exchange amount falls below $1000, then they will charge a flat fee of $7.50. At TD Bank too, you will get a similar exchange fee of $7.50.
However, they have fixed the lower limit of exchange at $250 and the upper limit at $1,500. In fact, according to Investopedia, the financial media website, you can also get solid rates at local banks and credit unions too. However, there are certain banks like Wells Fargo, which have less attractive currency exchange options. In fact, the fact that they do not charge any flat fees is overshadowed by the lesser return that you will get on the exchange money.
Their currency calculator shows that you will have to pay 4% to 10% for currency exchange. However, these rates vary from currency to currency and the back states that these rates alter on a daily basis. Therefore, Wells Fargo does not appear to be a great option when compared to the Bank of America or TD Bank. However, they still provide better exchange rates than what you get at airports.
In fact, according to Conde Nast Traveler, airports are greatly expensive places for trading money. In fact, most airports charge anything between $5 to $15 as exchange fees. Moreover, Conde Nast Traveler states that the exchange rate can be “seven to 15 per cent worse than the standard bank rate.”
In fact, it is important to know how much currency you need to convert. There are many websites like Budget Your Trip to help you with that decision. Also, with a website like remitfinder.com, you can send money overseas to your loved ones by comparing and getting the remittance exchange rate of USD to INR, CAD to PKR, or any currency exchange. These websites provide an estimate of how much money you are likely to spend in any particular country. Therefore, these websites are perfect tools to help you budget your travel.
Exchange Rate: Using Your Credit Card
Credit cards are the easiest ways to make purchases. In fact, when you are travelling abroad, you might want to get rid of the processes involved in currency exchange. Well, to some extent it is really helpful. In fact, it saves you from the hassle of exchanging currency. However, while using a credit card abroad, one needs to know a few things.
Firstly, every time you make a purchase using your credit card abroad, your bank is likely to charge a foreign transaction fee. The rate of this fee is generally around 3%. Therefore, if you want to choose between a flat fee for exchange at your bank and a credit card, then the first option will be more profitable for you.
Secondly, only a few companies and banks issue credit cards that do not charge any foreign transaction fee. You can get such cards from Captial One, Bank of America and Chase. Such cards are really helpful for those who frequently travel abroad. However, then also, it is better to have some cash at hand. In fact, we never know what situation is to come next.
Summing Up
Travelling abroad needs thorough planning. In that plan, it is essential to keep economic aspects too. In fact, when you are travelling abroad, exchanging currency becomes essential. However, while exchanging currency, we must pay attention to the exchange rate. In fact, this is very essential in planning the budget for the travel. As we have seen, various banks provide varied exchange rates. Some banks like the Bank of America and TD Bank provide better options for currency exchange.
There are also certain banks, whose exchange policies are not that attractive, Yet they are better options when compared to the exchange counters at airports. Apart from that, you may also use a credit card. However, the banks add a foreign transaction fee for each transaction.
In that case, the credit cards issued by Captial One, Bank of America and Chase are better, as they do not charge any transaction fee. However, some cash in hand is always necessary for handling any un-called-for situation. After all, we never want to land in trouble in a foreign land.
Also Read: Top Reasons To Plan Your Honeymoon Trip To Munnar
