Exchanging cold hard cash internationally for the best rate
So I've just sold the car I was using in New Zealand for six months. The buyer paid in cash. So now I have a substantial sum of cash in NZD.
I will be in Canada next week starting my one-year visa. Obviously I'll need cash. Ignoring the risk of carrying cash on me, what's the best way to exchange that NZD into CAD cash?
Options I can think of:
- exchanging it at a travel exchange in NZ
- exchanging it in Hawaii enroute
- exchanging it in Canada at a bank / exchange place
- depositing it in my NZ bank account here, and using my ATM card to withdraw it there.
I'm not sure which is the best option though, to avoid losing too much on fees, exchange differences, and bank charges.
Best Answer
Probably not the exact answer to this question, but here's what I would do:
- Assuming you have a bank account in New Zealand, I would deposit the vast sum of cash with them.
- If you don't have one already, apply for a no-annual-fee credit card, either with the bank, or with any other financial institution. Make sure it also carries no foreign transaction fee. In the US, the Visa Signature credit card offers this benefit. Hopefully, they have a NZ offering as well.
- Link your bank account with the credit card payment system online, so you can access the account anywhere to pay it off periodically.
- Travel to Canada and swipe away!
This kills several birds with one stone:
- Safely deposit a vast sum of cash, and travel with the security of a credit card, with far lesser theft/loss liability than cash.
- Credit Cards offer one of the lowest exchange rates, often times more competitive with the banks. The foreign transaction fee (usually ~2%) is waived if you get the right card. And you don't have to pay banks any commissions during the exchange.
- Given that credit cards are widely accepted throughout North America, you will probably get more benefits (cashback, miles, etc.) than you would spending cash or using a bank debit card.
Pictures about "Exchanging cold hard cash internationally for the best rate"
Is it better to exchange money in the country you are going to?
Although this depends on many factors, including which currencies you want to convert and which country you are travelling to, generally speaking exchanging your money AFTER you travel will provide you with a more favourable exchange rate. The rule is simple: the more common the currency is, the cheaper it will be.What is the best way to get cash in a foreign country?
If you want to get cash from an ATM in another country, check to see if your bank has ATMs in your destination city\u2014you may be able to avoid costly ATM fees. Keep in mind that your bank may charge you a fee for using an out-of-network ATM. That's on top of any local fee being charged by the foreign ATM.How do I avoid foreign transaction fees?
Foreign Transaction Fees: What To Know And How to Avoid ThemWhere can I get the best exchange?
Local banks and credit unions usually offer the best rates. Major banks, such as Chase or Bank of America, offer the added benefit of having ATMs overseas. Online bureaus or currency converters, such as Travelex, provide convenient foreign exchange services.How to get the best rate when exchanging your money
Sources: Stack Exchange - This article follows the attribution requirements of Stack Exchange and is licensed under CC BY-SA 3.0.
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