How to Get the Best Exchange Rate when Traveling in a Foreign Country

Depending on where you travel, currency exchange rates can either help you get great bargains or make your trip surprisingly expensive. No matter how strong your home currency is relative to the local currency, however, you want to make sure you're getting the best exchange rate possible whenever you need to get cash or make a purchase.



Find out what your bank charges for foreign transactions. Most of the time, you'll get the best possible exchange rate when you use your credit or debit card, either to make purchases or to withdraw cash from an ATM. By doing so, you get the same exchange rates that the banks offer to each other, with no middleman adding extra fees for the exchange. Some banks and credit card companies, however, will charge you a fee of as much as 3 percent on foreign transactions, so you need to do some research before you leave home. Call your bank and ask them what they charge. If they charge a fee, call around and ask other banks what they're charging. You may be able to find a better deal, but you'll need to plan well ahead.